Top Headlines
Ex-Forex Traders in Singapore Get Jail Time for Cheating Banks – Bloomberg
Two former currency traders from Deutsche Bank and HSBC Holdings were sentenced to jail terms of as long as 15 weeks for cheating the banks by making false trades.
FXCM Changes Name, Leadership Following US Scandal – Profit & Loss
FXCM is changing its name and its leadership following the recent scandal which saw the firm and its co-founders, William Ahdout and Drew Niv, fined $7 million and the firm banned from operating in the US.
‘Desperate Measures’: Analysts React to Mexico’s $20bn Peso Plan – Financial Times (subscription)
Late on Tuesday, the country’s central bank surprised markets by unveiling a $20bn currency hedging programme that would allow policymakers to combat volatility in the peso without dipping into their foreign exchange reserves.
Dollar Edges Down as Market Awaits Fed Minutes – Reuters
The dollar edged down in Asian trading as investors awaited the minutes of the Federal Reserve’s latest meeting for clues as to the pace of interest rate hikes, while the euro nursed losses and remained pressured by European political woes.
Euro Hits Six-Week Low – Financial Times (subscription)
The euro has hit its lowest level since the start of January, shrugging off strong economic data amid broad gains for the dollar the previous day.
Euro Implied Volatility Rises on French Election Nerves – Reuters
The cost of hedging against big falls in the euro over the next three months hit the highest in more than two months, as investors sought protection from currency volatility around France’s presidential election.
Rand Pulls Back as Worries Re-Emerge Over Finance Minister – Financial Times (subscription)
Political worries are once again nibbling at the South African rand, after president Jacob Zuma’s latest unorthodox government appointment raised investor fears that he could try to unseat the country’s internationally-respected finance minister.
This May Be the Best Carry Trade in Currency Markets – Bloomberg
Looking for the best carry trade in currency markets? The Taiwan dollar leads the pack.
Is India’s Demonetisation Supporting the Rupee? – Financial Times (subscription)
One unexpected consequence could be stronger support for the value of the rupee against other currencies.
Regulatory News
US Treasury Chief Tells IMF He Expects ‘Frank and Candid’ Forex Analysis – Reuters
US Treasury Secretary Steven Mnuchin told International Monetary Fund Managing Director Christine Lagarde that he expects the IMF to provide “frank and candid” analysis of exchange rate policies, a Treasury spokesperson said.
Schaeuble Sees Financial Transaction Tax Riddled with Holes – Bloomberg
German Finance Minister Wolfgang Schaeuble said a proposed European financial transaction tax is being hollowed out by increasing demands for carve-outs.
Margin Preparations Ongoing – Markets Media
Market participants are continuing to prepare for new margin requirements for uncleared derivatives which come into force next month despite US regulators recommending no enforcement for six months.
FCM Upheaval Changing Face of Clearing – FOW (subscription)
New financial regulations are set to force large banks further into retreat.
The European SEFs: How OTFs Will Change the European Marketplace – Waters Technology (subscription)
OTFs will debut along with MiFID II in January 2018, offering special trading venues where derivatives will be subjected to increased levels of pre-and post-trade transparency.
Nigerian Central Bank Warns on Circumventing FX Policy – Financial Times (subscription)
Nigeria’s central bank has warned banks not to circumvent its new foreign exchange policy as it gave further details on the new measures announced on Monday that have left the naira trading at a record low.
Company News
Crédit Agricole to Overhaul FX and Derivatives Trading Systems – The Trade
Crédit Agricole is to replace its trading legacy systems for interest rate derivatives and FX trading through a partnership with Orchestrade Financial Systems.
NEX Group’s Abide Looks to Become APA and ARM Ahead of MiFID II – The Trade
Abide Financial, a subsidiary of NEX Group, has applied to become an approved reporting mechanism (ARM) and approved publication arrangement (APA) ahead of MiFID II’s reporting rules.
Margin Rule Works in TriOptima’s Favour – Profit & Loss
TriOptima has announced that 60 clients have adopted its triResolve Margin service since it launched in June 2016 as firms push to meet the new variation margin regulations coming into effect on March 1.
CME Group Sees Chinese Hedge Funds, State-Owned Firms Driving Asia Growth – Reuters
Christopher Fix, managing director for Asia for Chicago-based CME, said the bourse expects to see volumes lifted as China’s state-owned enterprises, driven by Beijing’s reform agenda, move to better manage their commodity and currency exposures.
Germany a Favorite for Citi’s Europe Investment Banking HQ – Reuters
US bank Citigroup may choose Frankfurt as the headquarters for its European investment banking and trading activities as part of its Brexit contingency plans, the bank’s European chief told Frankfurter Allgemeine Zeitung.
Moore Departs as Lloyds Re-Structures – Profit & Loss
Richard Moore has left his position as head of financial markets at Lloyds Bank in London as the bank has combined its financial markets and capital markets divisions.
Market Savvy
Mexican Peso Holds at Three-Month High on New Hedging Programme – Financial Times (subscription)
The peso is sitting steady at a three-month high against the dollar after Mexico’s central bank unveiled a $20bn hedging programme designed to curb the currency’s volatility without turning to international reserves.
C$ Hits 12-Day Low, Pressured By Divergent Rate Outlook – Reuters
The Canadian dollar weakened to hit a 12-day low against its US counterpart, whose gains against a basket of major currencies offset higher prices for oil, a major export for Canada.
Naira Firms on Black Market After Central Bank Action – Reuters
Nigeria’s naira firmed 1.1 percent to 510 on the black market, bureau de change traders said, after the central bank started to supply dollars for retail transactions in a bid to narrow the spread with the official exchange rate.