Top Headlines

FXPA Meets with Regulators, Policymakers in Washington –

Members of the Foreign Exchange Professionals Association (FXPA) spent two days in Washington DC last month meeting with senior members of the Federal Reserve, US Treasury and Commodity Futures Trading Commission (CFTC), as well as held a series of educational briefings for Congressional staffers on such key committees as the House Financial Services Committee, both the House and Senate Agriculture Committees, and the Senate Banking Committee.

FX Committee Surveys Shows Divergence in Trading Activity – Profit & Loss (Free Story)

The turnover survey results released by the Foreign Exchange Committees around the world show little by way of unifying trends with regards to FX trading activity in April 2015.

Turnover Data Reveals Drop in e-Ratios, Surprising Leap in Voice – Profit & Loss

The latest round of FX committee turnover surveys indicates an accelerating decline in the share of volume handled electronically.

Hayes Judge Concludes his Summing-up; Jury Retires –

The Tom Hayes Libor trial, which has spanned almost 10 weeks, reached finalities today (July 27) as judge Jeremy Cooke concluded his summing-up of the proceedings and the jury retired to begin their deliberations.

Regulatory News

Buy-Side Post-Trade Realities: Keeping Cool While Under Fire – Aite Group

The potential impact of a large asset manager’s failure on the financial markets is at the forefront of the regulatory crackdown on nonbank financial institutions. Buy-side-focused regulation may begin to rival that focused on the sell-side if nonbank reform continues to be drafted at this pace. Regulation has, in turn, spurred some firms that put technology purchases on hold during the 2008 economic and market crisis to re-evaluate their internal technology environments in light of incoming requirements.

What the City wants from the FCA, after Wheatley – eFinancialNews (subscription)

In mid-September, the era of Martin Wheatley as chief executive of the Financial Conduct Authority will come to an end. For large financial firms, it has been a rocky couple of years. Financial News canvassed views on what they would like from his successor.

Bipartisan Consensus Emerges on Inter-Affiliate Trades – DerivatiViews

The term — inter-affiliate trade — is hardly a household phrase.  But it is at the heart of an important risk management issue, and consensus is growing that the issue needs to be addressed by policymakers.

Company News

UBS Sees FRC Revenue Drop in Q2 –  Profit & Loss (Free Story)

UBS has become the latest bank to report a pullback in earnings from its financial markets business as volatility dampened in Q2.

Taifex Sees Promising Start to USD/RMB Futures – Mondovisione

The two new RMB FX futures on Taifex appear to be gaining some traction.

Firms Weigh Linking Bonuses to Currency Swings – WSJ

$29 B: What North American firms lost due to currency swings during first quarter. North American companies lost $28.9 billion in the first quarter of the year due to currency fluctuations, nearly nine times the $3.3 billion loss from the first quarter of 2014, according to the currency-risk consultancy FiREapps.

Market Savvy  

China Shares Gyrate as Beijing Scrambles to Calm Markets – Reuters

Chinese shares whip-sawed between gains and losses on Tuesday, as Beijing scrambled once again to prop up a stock market whose wild gyrations have heightened fears about the financial stability of the world’s second biggest economy.

Fed May Hint September Liftoff Is on Table With Statement Tweaks  –Bloomberg

The Federal Reserve’s message for the market this week could contain hints about the timing of its first interest-rate rise that echo the advice once offered in an old teen love song popular in the 60s: “See You in September.”

The End of USD-Decoupling; UK GDP – Credit Agricole

The USD-underperformance continues as investors take profit on overextended longs ahead of the Fed meeting and the release of the US Q2 GDP. Part of that seems driven by uncertainty about the outcome of the July meeting and the quality of the US data. Indeed, the renewed selloff in the Chinese stock market brought global growth concerns back on the table, presumably complicating Fed’s task.

Press Releases

EBS BrokerTec Combines MyTreasury into Product Portfolio, Entering the Corporate Client Segment and Money Markets

EBS BrokerTec, ICAP’s market-leading electronic foreign exchange and fixed income business, announces that, in line with its multi-product expansion strategy it has combined MyTreasury into its product portfolio.

Financial Conduct Authority Plan to Restore Public Confidence in Financial Services Presents Leaders with Challenge to Develop Ethical Culture (Registration required)

According to a new report from leadership development and employee engagement firms BlessingWhite and Bath Consultancy Group, 73% of senior leaders in financial services believe the new regulations will transform the way talent is rewarded and identified, moving away from a culture that allowed individuals to behave in a way that did not serve the customers’ best interests.

Manulife Asset Management Adds Jason Fromer as Head Currency Trader

Manulife Asset Management said that it has hired Jason Fromer as Managing Director and Head Currency Trader, a new position at the firm. The appointment was effective July 6. Based in the firm’s Boston office, Mr. Fromer reports to John F. Addeo, CFA, Senior Managing Director and Deputy CIO US Fixed Income.

Industry Events