Top Headlines

Fed to Sit Tight on Rates at March Meet, Hint at Hikes to Come – Reuters

The Federal Reserve won’t raise interest rates this week, but will likely make clear that as long as U.S. inflation and jobs continue to strengthen, economic weakness overseas won’t stop rates from rising fairly soon.


Central Banks and Markets: Locked in a Deadly Embrace – Wall Street Journal (subscription)

Post-crisis bond between central bankers and markets looks increasingly unhealthy.

China Drafts Rules for Tobin Tax on Currency Transactions – Bloomberg

China’s central bank has drafted rules for a tax on foreign-exchange transactions that would help curb currency speculation.


BOJ Stands Pat, Warns of Weakening Inflation Expectations – Reuters

The Bank of Japan kept monetary policy steady on Tuesday but offered a bleaker view on the economy and warned of waning inflation expectations, signaling that global headwinds that may justify deploying yet more stimulus ahead.


Brazil’s Currency Rally Faces Challenges – Financial Times (subscription)

A deep recession, downgrades from rating agencies, spiraling unemployment, a huge fiscal deficit, political turmoil — the list of Brazil’s problems is long and seemingly unsolvable. So why are currency investors showing a liking for Brazil’s real?

Egypt Devalues Pound, Announces More Flexible Exchange Rate Policy – Reuters

Egypt’s central bank devalued the pound on Monday and said it would move to a more flexible exchange rate regime, in an effort to rebalance markets and ease a foreign exchange shortage that had stifled business activity and hit confidence.


Has the Global Scare Over China Eased? Hong Kong Dollar Says Yes – Bloomberg

Restricted to a tight trading band against the greenback, Hong Kong’s dollar may not be among the most-watched currencies in the world. But it can be a pretty good proxy for gauging investor concerns about China.

Regulatory News

Russia Arrest Said to Be Linked to Deutsche Bank Trading Probe – Bloomberg

A former shareholder of Promsberbank, a Russian lender whose license was revoked last year, was arrested in Moscow earlier this month as regulators probe trades handled by Deutsche Bank AG that may have been used to launder money.

South Korea Watchdog Fines HSBC and Deutsche $50,000 for FX Swap Collusion – Reuters

South Korea’s competition watchdog said it had fined HSBC Holdings Plc’s Hong Kong unit and Deutsche Bank AG a combined 59 million won ($50,000) for colluding on foreign exchange swap bids – its first-ever penalty for an FX derivatives-related case. 

CFTC Defers Swap Trade Confirmation Rule – Profit & Loss

The US Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight (DMO) has issued a no-action letter extending the time period for relief in connection with swap trade confirmation requirements that previously was provided, and which expires on March 31, 2016.

Why the Gridlock Slowing New Rules for Wall Street Won’t Go Away – Bloomberg

The long wait by Wall Street’s top regulator for a full slate of commissioners may soon end. That doesn’t mean the partisan fights over rules and corporate punishments that have stalled action at the U.S. Securities and Exchange Commission will stop.

Company News

“Bank in a Box” Claims to Revolutionise the Digital Content-Delivery Ecosystem – Profit & Loss

A new bank-owned initiative, “Bank in a Box” (BiaB) is being launched today, March 15.

Proposed Exchange Chief Carsten Kengeter Was Viewed as Possible Libor Co-Conspirator – Wall Street Journal (subscription)

Carsten Kengeter is on track to run Europe’s largest stock exchange. Three years ago, British prosecutors viewed him as a possible co-conspirator in the global interest-rate-rigging scandal.

Object Trading Adds Clearer to DMA Platform – Profit & Loss

Trading infrastructure firm Object Trading  (Object) and clearing provider G.H. Financials (G.H.) are working together to provide improved Direct Market Access (DMA) to the ASX 24 derivatives trading platform.

Market Savvy

Emerging-Market Currency Rally Is Too Good to Last – Wall Street Journal (subscription)

Emerging markets have been caught between expectations of a stronger U.S. dollar and fear that China will allow a much weaker yuan.

Brexit or Not, Uncertainty Costs – Reuters

In or out, Britain will pay a price in delayed investment and consumption and increased volatility simply because it is voting on its European Union future.

Mobius Sees Emerging Markets at Turning Point After Rout – Bloomberg

Emerging markets are at a turning point with a reversal in sight, said Mark Mobius, executive chairman at Templeton Emerging Markets Group, signaling optimism after the worst annual rout in four years.

Press Releases

CFTC Orders Florida-based IBFX, Inc. (f/k/a TradeStation Forex, Inc.) to Pay a $1 Million Penalty

Fine issued for failing to meet minimum capital requirements, failing to timely report minimum net capital violations, supervisory failures, and violating a prior CFTC order.

People’s Bank Of China And Monetary Authority Of Singapore Renew Bilateral Currency Swap Arrangement – Mondo Visione

The People’s Bank of China (PBC) and the Monetary Authority of Singapore (MAS) today announced the renewal of the existing bilateral currency swap arrangement (BCSA) for a further term of three years.

Industry Events

FIA: Boca 2016, 15-18 March in Boca Raton, FL

FOW: Derivatives World, 12-13 April in Hong Kong

FX Week FX Invest North America, 12 April in Boston, MA

Profit & Loss Forex Network London, 14 April in London, UK

Profit & Loss Latin America, 20 April in Mexico City

ACI World Congress 2016 – Indonesia, 26-30 April, Jakarta

Eurofinance:  Asia Treasury, 18-20 May in Singapore

Profit & Loss Forex Network New York, 26 May, New York City

FIA: IDX 2016, 7-8 June in London, England

Profit & Loss Scandinavia, TBD September, Copenhagen

Profit & Loss Forex Network Chicago, 28-29 September, Chicago, IL

Sibos 2016, 26-29 September in Geneva, Switzerland

FIA: Expo, 18-20 October in Chicago, IL