Top Headlines

Euro Falls Below 1999 Launch Rate as QE Door Seen Left Open – Reuters

The euro fell below its 1999 launch rate against the dollar for the first time in over nine years on Wednesday after an adviser to Europe’s highest court said an ECB bond-buying programme was legal under certain conditions.

JP Morgan Hit by $1 Billion in Fresh Legal Charges – Financial Times (subscription)
JP Morgan Chase’s earnings were hit by $1.1 billion in new legal charges as the largest US bank prepares to settle looming charges over foreign exchange manipulation by the Department of Justice.

Tullett Prebon and BGC Declare a $100 Million Truce Over Broker Poaching – The Telegraph
Tullett Prebon has settled its long-running dispute with rival broker BGC in a $100 million settlement, almost five years after the latter tried to poach more than 80 brokers from Tullett’s US-based subsidiaries.

‘Grexit’ Unlikely, Less Risk of Contagion Than in 2012, Says Moody’s – Reuters
Greece remains relatively unlikely to leave the euro zone, ratings agency Moody’s said on Wednesday, despite the prospect of an anti-bailout leftist party winning a snap election on January 25.

FXPA: A New Force for Advancing the Interests of the FX Industry – eForex (subscription)
The FX market stands at a critical juncture as technological innovation, new competitive forces, and an evolving market structure and regulatory framework redefine the FX landscape. More recently, investigations and settlements related to the alleged manipulation of benchmark FX rates have heightened public scrutiny of the FX marketplace. Against this collective backdrop, the Foreign Exchange Professionals Association (FXPA) was formed by a diverse group of FX market participants to provide a unique contribution to the public dialogue.

Russia’s Ruble Sinks to Lowest Level Since December Currency Run – Wall Street Journal (subscription)
Russia’s ruble Tuesday sank to its lowest levels since a run on the currency mid-December, wounded by a fresh slump in oil prices and rising fears that the central bank’s emergency measures to rescue the currency last month aren’t enough to staunch the crisis.

FX Leads the Way in Buy-Side Technology Spend: Greenwich – FX Week (subscription)
Greenwich Associates 2014 Trading-Desk Optimisation Study shows FX desks on the buy side have upped their technology spend.

Japanese Currency Climbs to Two Month High – Financial Times (subscription)
The Japanese yen has climbed against the dollar for a fourth day running – its longest winning streak since mid-October – to trade at its highest level in two months.

Aussie Dollar Sinks as Copper Loses Lustre – Wall Street Journal (subscription)
The Australian dollar fell sharply in Asian trading as investors were spooked by a drop in the copper price to its lowest level in more than five years.

Yuan Comeback Seen by Top Forecasters on Spending – Bloomberg
The yuan will stage a comeback this year as China’s government boosts spending to revive economic growth, according to two of the currency’s top three forecasters.



Regulatory News

In New Congress, Wall St. Pushes to Undermine Dodd-Frank Reform – New York Times
In the span of a month, the nation’s biggest banks and investment firms have twice won passage of measures to weaken regulations intended to help lessen the risk of another financial crisis.

CFTC Slams Forex Trader’s ‘Dangerous’ Lehman Claim – Law360
Commodity market regulators have objected to a hedge fund manager’s demand for full repayment on a $12 million foreign exchange debt with Lehman Brothers, urging a narrow reading of the Bankruptcy Code’s protections for currency traders.

CFTC Chairman Massad Announces Trip to Asia to Continue Dialogue on Swaps Market Reform
US Commodity Futures Trading Commission Chairman Tim Massad will travel to Beijing, Hong Kong, Tokyo and Singapore in January to meet with government officials and market participants. Chairman Massad is making the trip in view of the increasing importance of the Asian derivatives markets and his desire to further the dialogue with government officials and market participants on common concerns and interests.



Company News

BGC Boosts Offer for GFI as Vote on CME Takeover Approaches – Bloomberg
Howard Lutnick’s BGC Partners boosted its offer for GFI Group by 2.8% as he seeks to derail a takeover of the interdealer broker by CME Group.

CBOE Targets FX Investors with VIX for Currencies – GlobalCapital (subscription)
The Chicago Board Options Exchange is now disseminating values for three new volatility indexes using the prices of CME Group’s FX futures options.

DGCX Plans Yuan, Lira Futures in Second Half of 2015 – Gulf News
The Dubai Gold and Commodities Exchange plans to start currency futures in the Chinese yuan and Turkey’s lira in the second half of the year. This comes after the exchange launched ruble, won futures in late December.



Market Savvy  

Risk-off boosts JPY and punishes AUD
Saxo Bank
The Japanese yen remains up to its old tricks as the souring mood in risk appetite continues to boost the currency across the board. The US dollar remains resilient, but has received little attention as recent days have seen it more in the middle of the pack, with the biggest swings among major currencies in the euro, and now AUD on the weak side and JPY on the strong side. Another recent spark for the yen’s comeback were the vastly improved current account balance figures released yesterday and Prime Minister Shinzō Abe’s proposed new budget overnight shows less borrowing for a third straight year.



Press Releases

Icap’s EBS and SGX Collaborate on Asian FX Initiatives
EBS, Icap’s electronic foreign exchange business, and SGX will collaborate and develop a new range of Asian currency products and services that complement the FX OTC and futures markets in Asia.

SGX Welcomes Mizuho Securities USA As First Remote Derivatives Clearing Member
Singapore Exchange (SGX) has added Mizuho Securities USA as its first remote clearing member. SGX was the first exchange in Asia to pioneer a new membership class for international clearing clients to access the SGX platform from their home jurisdictions. This capability is required by the US Dodd-Frank Act, and SGX is the first in Asia to be accorded designated clearing organisation (DCO) by the US Commodity Futures Trading Commission.

The Currency Exchange Selects Quantifi for Counterparty Credit Risk Management for Emerging Market Currencies Derivatives
The Currency Exchange has selected Quantifi for pricing and risk management of counterparty credit risk in emerging market currency and interest rate derivatives.



Industry Events