Top Headlines

Euro Steadies Despite Greek Worries – Reuters
The euro regained a foothold in early deals in London on Monday, investors choosing to take some profit on two days of dramatic losses after the results of elections in Greece sent the single currency to an 11-year low.

Swiss Franc’s Leap Lifts Some FX Brokers – Wall Street Journal (subscription)
Even as some foreign exchange brokers that focus on serving retail customers were getting hammered by the surprise surge in the Swiss franc earlier this month, other firms that deal mostly with big banks, hedge funds and other large clients were handling record amounts of business – and raking in profits.

Swiss Banks Calm Fears of Losses From SNB Move – Profit & Loss(subscription)
UBS did not suffer any losses overall in its trading business after the Swiss National Bank’s (SNB) decision to abandon its currency cap, the bank said on Friday.

Fifty Suitors Bid for Remains of FX Firm Alpari UK – City A.M.
More than 50 companies are bidding to buy all or part of failed forex and spreadbetting firm Alpari UK, City A.M. understands – with international units of the wider Alpari group among those who are interested.

Barclays Attempted to Cancel Swiss Franc Trades – FX Week (subscription)
EUR/CHF trades executed with Barclays are being negotiated between bank and buy-side counterparties after the British firm looked to cancel some FX trades following SNB move.

China’s Yuan Falls to Seven-Month Low – Wall Street Journal (subscription)
China’s yuan fell sharply Monday to its weakest level in seven months, pushed lower by the central bank as Beijing adds to a host of measures aimed at spurring growth.

Pound Reaches Seven-Year High Versus Euro as ECB Reveals QE Programme – Bloomberg
The GBP rose to its strongest level in almost seven years against the euro as the European Central Bank said it would inject more than €1.1 trillion ($1.2 trillion) into the eurosystem through buying debt in the region.

CAD Declines Following Surprise BOC Rates Cut – Profit & Loss (subscription)
The Bank of Canada (BOC) lowered its overnight rate last week, causing a sharp decline in the value of the Canadian dollar.

Comment: Is a Strong Dollar a Good Thing or a Bad Thing? – Forbes
You are probably way ahead of me on this, but I’ll say it anyway: it depends.

Swiss Finance Minister Says Chinese Bank to Open Swiss Branch in 2015 –Reuters
State-owned China Construction Bank (CCB) is expected to open a Swiss branch during 2015, the Swiss finance minister was quoted on Saturday as saying, following a deal to establish clearing arrangements in Switzerland for trading in China’s currency.

The FX Crisis: Dealing With Human Risk and Restoring Trust Within the FX Markets – Profit & Loss Webinar (free)
As the financial services industry looks to recover from the recent FX crisis and restore trust within the FX markets, banking executives are under pressure to fully understand the risks inherent within their organisation. Beyond market, credit and trading risk – human risk is quickly becoming the single largest exposure that financial institutions are facing today.

FXPA News: Join by 1 Feb to Qualify for Time-Limited Membership Category
The special founding member category of the Foreign Exchange Professionals Association (FXPA) will close on 1 February. Join today to be part of the first wave of founding members that enjoy the distinct benefits that this class offers. FXPA recently crossed the critical threshold of 15 members, triggering elections for the first permanent Board of Directors and Officers. FXPA’s Board will include 50% representation by Founding Members that join prior to the 1 February deadline.

Regulatory News

CFTC to Allow Foreign-Based IBs to Use Domestic Accounting Rules in Their Reports – LeapRate
The CFTC now permits foreign-domiciled IBs to file audited and unaudited accounts, as applicable, using local accounting principles in effect where the IB is domiciled in lieu of US Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS).

Company News

FX Head to Retire From BNY Mellon – Profit & Loss (subscription)
Craig Messenger, global head of trading and risk at BNY Mellon in New York, is set to retire, Profit & Loss understands.

FastMatch Publishes Fee Schedule – Profit & Loss (subscription)
In a move it claims to be a first, FX ECN FastMatch has published its fee schedule for trading on the platform.

Saxo Bank Says Could Lose Up to $107 Million on SNB Shock – Reuters
Denmark’s Saxo Bank faces potential losses of up to $107 million as a result of the Swiss National Bank’s (SNB) decision to end its currency cap against the euro, the bank said in a statement late on Friday.

Dukascopy Bank to Embrace 1% Margin on EUR/CHF – Forex Magnates
Swiss bank, Dukascopy, is one of the first major forex providers in the country to reinstate its standard margin requirements on the troubled EUR/CHF financial instrument. The revised margins are to return on the 25 January.

FXCM Letter to Clients to Repay Negative Balances – LeapRate
FXCM has taken another step to erase negative client balances – merging accounts.

Market Savvy  

EURUSD Traders Weigh Syriza Victory Versus Upcoming FOMC
Saxo Bank
The Greek election result over the weekend wasn’t exactly a landslide in percentage terms as Syriza received 36% of the vote, but the result is strong enough to make it possible for Syriza to form a government if they are able to form a government with the support of a minor coalition partner. Once we’re over the uncertainty of whether a Greek government will quickly emerge, especially vis-à-vis the choice of the coalition partner, the focus will quickly shift to a tense drama of negotiations that will ensue between Syriza and the IMF/EU/ECB troika, as Syriza has swept to power on a platform promising a reduction of the burden of austerity.

Press Releases

ISDA Proposes CCP Recovery and Continuity Framework
The International Swaps and Derivatives Association (ISDA) announced the publication of a new position paper that sets out a proposed recovery and continuity framework for central counterparties (CCPs).

FXCM Provides Business Update
FXCM has released an update on its business as well as a statement from CEO Drew Niv, on FXCM’s month-to-date metrics along with the firm’s current plans to pay down its debt. Leucadia’s CEO Richard Handler and Brian Friedman, president, also commented.

First Derivatives and FTT Partner to Provide a Combined Solution for FX Brokers
First Derivatives announces a partnership with Fair Trading Technology to provide an integrated solution for retail brokers.

Industry Events