FX World Needs Rules on Undoing Trades after Franc Events: Oanda – Reuters
Major banks behaved badly in refusing to stand by exchange rates agreed when the Swiss franc surged in value in January, the head of one large retail brokerage said, calling on regulators to lay down new rules to protect smaller foreign exchange traders from such second guessing.
Emerging Markets Liquidity Hit as Banks Pull Back from Risk Warehousing – FX Week (subscription)
Offloading emerging market currency risk in the interdealer market can take up to three times longer than in the past with significantly higher costs, as banks reduce their exposure to non-deliverable forwards, traders say.The pullback from risk warehousing comes ahead of the July 21 deadline for the kick-in of the Volcker rule.
Unchained: How Blockchain and Bitcoin Are Going Mainstream – John Lothian News Special Report
Blockchain technology, defined as a ledger of all bitcoin transactions that have been executed, both threatens and offers a unique opportunity for the financial markets. Because blockchain technology is able to hold critical information on the ownership of a particular contract or security, value, prior owner, as well as the matched sale of that asset, it could change the industry at the exchange or broker-dealer level.
Yuan Trade Volumes in London More Than Double – South China Morning Post
Chinese renminbi trade volumes in London more than doubled last year, according to figures from the City of London Corporation on Friday, in a further sign of deepening financial links between Britain and China.
Citi Managers ‘Low-Balled’ Libor, Hayes Defence Argues – Operational Risk & Regulation
The Citi senior manager who heard “alarm bells” over Libor scandal trader Tom Hayes’s trading methods himself appeared to agree to manipulate the benchmark, a London court heard.