G-7 Said to Ask FSB to Develop Conduct Code with Global Banks

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Top Headlines

G-7 Said to Ask FSB to Develop Conduct Code with Global Banks – Bloomberg
Finance ministers of the Group of Seven nations asked Financial Stability Board chief Mark Carney to work with global lenders to develop a code of conduct, two officials briefed on the discussions said.

SNB’s Jordan Says Further Rate Cuts Depend on Global Environment –Bloomberg
Further interest rate cuts by the Swiss National Bank will depend on global situation, its President Thomas Jordan said. “Whether we need to go lower with the negative rates depends on international developments,” Jordan said in a discussion with members of the Swiss public, according to the transcript published by Schweiz am Sonntag.

G7 Agree RMB Should be an IMF Reserve Currency – Profit & Loss (free story)
Finance ministers and central bankers from the seven leading industrialised countries have welcomed the possible inclusion of China’s currency in the International Monetary Fund’s (IMF) Special Drawing Rights (SDR) currency basket.

Traders’ Losses Mount as Divining Dollar’s Moves Proves Elusive – Bloomberg
Foreign exchange traders just can’t seem to figure out the dollar – and it’s costing them lots of money. An index tracking returns of 14 top currency funds just posted its first back-to-back monthly decline in more than a year. Parker Global Strategies’ measure fell 1.1% last month after dropping 0.7% in April.

Europe ESMA OTC Derivative Data Shows Forex Makes Up 56% of Trades –LeapRate
The publically available data allows market participants to monitor the extent, dynamics and trends of derivatives trading in the EU, including identifying what has been traded on- and off-venue.

Russia Central Bank Halts One-Year FX Repo Auctions as of 1 June – Reuters
The Russian central bank said on Monday it had decided to stop holding its one-year foreign exchange repo auctions as of 1 June. “Taking into account changes in the situation on the currency market, the central bank has decided to suspend as of 1 June, 2015, foreign currency repo auctions with maturity of 364 days,” the central bank said in a statement.

FX E-Trading Increasingly Widespread Amongst Asia-Pacific Corporates –Profit & Loss (free story)
Electronic dealing in FX is experiencing a surge in popularity amongst corporate treasurers in the Asia-Pacific region, according to the second Asia-Pacific Treasury Management Barometer Survey.

Czech Leaders Clash Over Euro Path as Zeman Urges Fast Entry – Bloomberg
The head of the Czech government clashed with his finance minister over whether the country needs a referendum on euro adoption as the public debate escalates about merits of ditching the national currency.

Regulatory News

NFA Proposes Higher Broker Standards in Wake of 15 Jan – Profit & Loss (free story)
The National Futures Association (NFA) has released proposals intended to strengthen the retail brokerage industry following the events of 15 January and in particular the troubles at FXCM.

Watchdog Suggests EU Takes Less Rigid View of Foreign Derivatives Rules –Reuters
The EU may need to be less rigid in its approach to dealing with financial rules from outside the bloc to avoid disputes with other countries, the EU’s top markets regulator said on Friday.

Q&A: FINMA’s Branson on Swiss Banks and the Swiss Franc – Risk.net(subscription)
Swiss bank regulators earned a reputation for conservatism – even among their peers – by quickly adopting a reinforced version of Basel III. But that was then, and Switzerland now needs to catch up on some issues, notably the leverage ratio, says Mark Branson, chief executive of the country’s prudential regulator.

CFEC Lays Out Conduct Framework – Profit & Loss (free story)
The Canadian Foreign Exchange Committee (CFEC) has explained its new code of conduct structure following the decision to broaden the number of codes it relies upon.

CBA Granted Chinese Currency Licence – the Australian
The Chinese government has granted the Commonwealth Bank a renminbi licence for its Shanghai branch, enabling the bank to broaden its institutional offering to Australian and Chinese clients.

ASIC Launches Consultation on Central Clearing for OTC Derivatives – Profit & Loss (free story)
The Australian Securities and Investments Commission (ASIC) has launched a consultation over proposed rules to implement mandatory central clearing requirements for certain over-the-counter (OTC) derivatives.

Company News

Hotspot FX Volume Down in May – Profit & Loss (free story)
Hotspot, the institutional FX platform acquired by BATS Global Markets four months ago, saw a 5.6% drop in average daily volume from $28.4 billion in April to $26.8 billion in May – though the drop was less steep than in April when volume fell 10.3% from March.

Deutsche Börse, SSE and CFFEX Form Joint Venture for RMB Products –Profit & Loss (free story)
Shanghai Stock Exchange, China Financial Futures Exchange and Deutsche Börse are launching a joint venture to develop and market renminbi (RMB) products to international investors outside Mainland China.

CME to Clear Brazilian Real Rates Swaps in Third Quarter – FOW(subscription)
CME Group has said it will start clearing Brazilian real interest rate (IRS) swaps in the third quarter of the year, amid a raft of improvements to its over-the-counter clearing capabilities. The new currency will take the number offered by CME to 19.

Global Markets Business Review Rumbles on at BNP Paribas – Profit & Loss(free story)
BNP Paribas has told a number of corporate and investment banking staff in London that their roles are “at risk”, as the French bank puts into action the results of its strategic business review launched last year.

Market Savvy  

Inside G-10: EUR Falls Versus Most Peers on Greek Concern; AUD Gains
Bloomberg
EUR drops versus most of its G-10 counterparts amid Greek concerns ahead of payment to IMF; AUD gains versus all of its peers after China’s factory PMI rose in May.

Euro Skids as Greece Misses Debt Deal Deadline
Reuters
The euro tumbled on Monday after Greece missed a self-imposed Sunday deadline for reaching an agreement with its lenders to unlock aid, keeping alive fears of a debt default and potential exit from the euro zone.

FX Update: Big Week Kicking Off for USD and EUR
Saxo Bank
The greenback’s rally last week was spoiled by a catastrophically bad Chicago PMI data point on Friday. With far more important US data up this week, the USD was largely able to brush this off as this week’s data stream from the US weighs far more heavily.

Press Releases

DGCX Introduces Data Enriched Website
The Dubai Gold and Commodities Exchange (DGCX) announced the launch of Market Watch, a content rich micro-website that provides in-depth analysis of trading data and price movements of DGCX products along with charts and market depth features.

Industry Events