FCA Chose Not to Chase Some Firms in FX Probe

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FCA Chose Not to Chase Some Firms in FX Probe – Wall Street Journal (subscription)
The Financial Conduct Authority chose not to pursue all institutions involved in the foreign exchange rigging scandal, believing that targeting the worst cases would be enough to send a message of deterrence to all.

Regulators Spending Less but Charging More – Wall Street Journal(subscription)
UK and US regulators levied significant fines last year on global banks for manipulating the London Interbank Offered Rate and foreign exchange markets, increasing the amount garnered, according to a report by Kinetic Partners. Meanwhile, agencies spent less on enforcement. “There is an emerging trend among certain regulators to focus on complex, high-profile cases and leverage massive penalties,” according to the report.

Eurozone Officials Discuss Holding Emergency Summit on Greece – Financial Times (subscription)
Eurozone officials are discussing holding an emergency summit on Sunday for leaders to tackle the crisis in Greece amid mounting fears a deal to break an ongoing impasse between Athens and its bailout creditors will not be reached at a high-stakes finance ministers meeting on Thursday.

Taiwan Futures Exchange Submits Draft Plan for USD/CNT Contract – Reuters
Taiwan Futures Exchange proposes to use yuan foreign exchange rates in Hong Kong (CNH) and Taiwan (CNT) to settle US dollar/yuan currency futures contracts, according to draft rules for the products seen by Reuters.

Video: Riskier Times as Futures Brokers Vanish – Financial Times(subscription)
The number of futures industry middlemen, the commission merchants, has halved in the past decade. Walt Lukken, chief executive of the FIA, explains to FT Trading Room editor Philip Stafford why this is a concern for markets and trading.

Regulatory News

Industry Groups Call for Standardisation – Profit & Loss (free story)
Major industry associations have sent a letter pressing for consistent derivatives trade data reporting requirements across jurisdictions to 16 regulatory watchdogs and authorities across the globe.

JP Morgan, HSBC Said to Meet EU Accusers in Euribor-Probe Hearing –Bloomberg
JPMorgan Chase, HSBC Holdings and Credit Agricole will come face-to-face with the EU antitrust officials who accused them of rigging the Euribor benchmark at hearings this week.

Company News

Deutsche Boerse Eyes Possible Bid for FX Platform 360T – Reuters
Deutsche Boerse is looking at the possibility of buying currency trading platform 360T, a source familiar with the situation said on Monday, although it was not yet clear if the German exchange operator will place a binding bid.

Clients Accuse IG Group of “Systemic Failings” – Profit & Loss (free story)
A group of IG Group clients who incurred millions in losses after betting against the Swiss franc are escalating their dispute with the company, alleging that the events of 15 January has revealed serious “systemic failings” on the part of IG.

Data Issue Affects Moscow Exchange Derivatives Market – FOW (subscription)
A data issue has caused Moscow Exchange’s derivatives-trading system to inaccurately display reference information. The glitch is one of a series of tech issues affecting exchanges worldwide.

Market Savvy  

Greek Progress Would Bode Well for EUR-Funded Carry Trades
BNP Paribas
Prospects for Greek deal have picked-up this morning with a headline suggesting that an emergency summit could take place this weekend (source: FT). However, trading around Greek headlines remains a difficult proposition for FX markets. The first inclination to sell the EUR on negative news has been countered by the reality that the market has been funding risk in EUR, and would be vulnerable to a short squeeze in a risk-off scenario.

Yen Dips, Euro Holds Up as Greek Storm Brews
Reuters
The dollar inched higher against the yen on Tuesday, while the euro again proved robust in the face of reports about the prospect of Greece edging into a debt default and departure from the euro.

Financial Market Perspectives
Track.com 
Treasuries strengthened Monday while riskier asset markets sold-off in response failure of Greek debt negotiators to reach any form of compromise over the weekend, in turn generating big losses in European equities and most European bond markets.

Press Releases

Bank of China Joins London Gold Fix
Bank of China has been approved by ICE Benchmark Administration (IBA) to participate in the gold auction, which is used to determine the LBMA Gold Price.

Senior Managers and Certification Regime Briefing for Professional Advisers – 20 July 2015
The FCA is holding a briefing for professional advisory firms on 20 July 2015 to discuss its approach to the Senior Managers and Certification Regime (SM&CR) and new conduct rules, including the authority’s expectations of firms in the transition period and under the new regime.

Industry Events