Top Headlines

FEMR Responses Hint at Direction Review May Take – Profit & Loss (free story)
A number of leading industry bodies are revealing their responses to the UK’s Fair and Effective Markets Review (FEMR) early, potentially allowing a glimpse into what the review’s final recommended standards are likely to be.

RBA’s Debelle Tells Forex Trading Banks to Reform, or Else – Sydney Morning Herald
Reserve Bank assistant governor Guy Debelle has told banks trading in the foreign exchange market to adopt global reforms or face greater scrutiny from regulators determined to stamp out manipulation of key market benchmarks.

Coyne Departs Traiana, Hunt is on for New CEO – Profit & Loss (free story)
CEO Traiana’s Andrew Coyne has decided to leave the firm to pursue other opportunities, Profit & Loss can exclusively reveal.

Euro Stalls on Lack of Greek Deal, Eyes on Riksbank – Reuters
The euro dipped on Thursday after regional finance ministers failed to secure a debt agreement with Greece, while investors readied for a possible interest rate cut in Sweden.

China Eases Rules on Foreign Banks’ Yuan Trades – Reuters
China has made it easier for foreign banks without full yuan business licenses to buy or sell foreign currencies against the yuan, its foreign exchange regulator said on Thursday.

Banks to Charge Clients for Executing at the Fix – Profit & Loss (free story)
A number of major FX banks are planning to charge their clients for executing FX trades at benchmark rates, in response to the FX Benchmark Group’s (FXBG) final recommendations and ahead of WM/Reuters changing its methodology for establishing the Fix as of 15 February.

Blog: Six Immediate Actions to be Prepared for the New CHF Volatility – KPMG
Since the latest SNB decision to release the EUR cap the CHF is back in a free floating and volatile FX market. Organisations that relied in their FX hedging strategy on the SNB floor registered significant financial impacts due to the CHF bull rally.

Hedge Funds Focused on Currencies Get Big Payoff – Wall Street Journal(subscription)
Currency markets are finally giving hedge funds some bang for their buck. Thanks to a consistently soaring dollar – and plunging euro – investment funds focused on currencies had the best month in years in January.

Speculators Seen Driving Denmark to Test World’s Lowest Rate – Bloomberg
Denmark’s central bank may set a world record in negative interest rates this week as policy makers try to flush out speculators still betting against the krone’s peg to the euro.

Regulatory News

CFTC Reviews Retail Forex-Trading Rules Following FXCM Debacle – Wall Street Journal (subscription)
The Commodity Futures Trading Commission is considering ways to boost its oversight of foreign-exchange dealers catering to mom-and-pop retail investors in light of a trading debacle that nearly collapsed broker FXCM last month, the agency’s chairman said Wednesday.

MAS Proposes Legislative Amendments to Strengthen Regulation of Derivatives Trading and the Securities Market
The Monetary Authority of Singapore (MAS) issued for consultation today proposed legislative amendments to the Securities and Futures Act (SFA) to effect reforms to the regulation of over-the-counter (OTC) derivatives trading and the securities market.

Buy Side Forced to Avoid Central Counterparty Regulatory Gridlock – Traders Magazine
As the regulatory turf war drags on, buy-side firms and CCPs are losing patience with the OTC derivative market’s 18-month disagreement between US and European regulators. They say it has hurt volume, and made markets riskier and more expensive.

BoE’s Furse: Markets More Vulnerable to Shocks as Liquidity Shrinks –Reuters
Markets are less active and therefore less able to absorb shocks and fund growth now that tougher capital rules have forced banks to cut back on trading, a senior Bank of England policymaker said on Wednesday.

Company News

Boston Prime Bankruptcy Documentation Reveals More Client Funds Questions – Forex Magnates
An affidavit by former CEO of Boston Technologies and director of BT Prime and Boston Prime alleges that a client funds gap has been identified, as BT Employees, led by George Popescu, blew the whistle to the FCA.

Saudi Arabian Derivatives Market Remains Attractive – One Financial Extends GCC Presence – Forex Magnates
One Financial Markets continues to dominate the Middle Eastern margin derivatives market through the establishment of its latest office in the most populous nation in the GCC. The broker will set up a new office in Saudi Arabia.

Market Savvy  

Yen Goes Berserk Intraday – What’s Up?
Quite an unexpected intraday move in USDJPY, with the major pair pulling back sharply after being so well bid up in Wednesday trade. The move comes on reports the BoJ now believes any extra stimulus would be counterproductive, while the central bank has also added consumer sentiment would be damaged by any further weakness in the yen.

Press Releases

Singapore Exchange Expands in China, Names Country Chief
Singapore Exchange (SGX) has established a wholly foreign-owned enterprise (WFOE) in China and will be setting up branches in Shanghai and Beijing. The exchange has appointed Lawrence Wong, head of Listings, as the head of its China business. Wong will have oversight of all of SGX’s China businesses, as part of the company’s expansion of its international presence.

FXCM Reports Monthly Metrics
FXCM announced certain key operating metrics for January 2015 for its retail and institutional foreign exchange business.

Synergy FX Launches ‘Hybrid Execution’ Model
Australian Forex broker Synergy FX is now accepting client applications for its new SynergyHybrid ECN accounts, just weeks after the market-shaking events of “Black Thursday”.

Industry Events