Global Regulators Rein in Spending as Fines Rocket – Profit & Loss (free story)
While spending increases among global regulators has moderated or reversed from 2013 to 2014, the size of financial penalties has spiked, according to a new report by Kinetic Partners, a division of Duff & Phelps.
South Korea Reviewing Whether Global Banks in FX Probe Affected Korea – Reuters
South Korea’s antitrust agency is investigating whether local firms were impacted by the six global banks that were recently fined nearly $6 billion in a US and European forex probe.
Iosco Publishes Report on Credible Deterrence Approaches in Securities Market Regulation (press release)
The International Organisation of Securities Commissions has published the report Credible Deterrence, which identifies key enforcement factors that may deter misconduct in international securities and investment markets.The report draws on the collective experience and expertise of Iosco members and was produced by Iosco’s Committee 4 on Enforcement and the Exchange of Information, which is chaired by the UK Financial Conduct Authority.
Broking Market Like ‘Wild West’, London Libor Trial Told – Reuters
Tom Hayes, a former trader on trial in London for alleged interest rate rigging, described the broking market he worked in as the “Wild West” with no rules and where relationships relied on lavish entertainment, a court heard on Tuesday.
Janet Yellen’s Prediction Last Month is Already Being Vindicated – Bloomberg
The Fed will take a pass at this meeting and leave market participants debating whether the first rate hike will come in September or December.
You’ve Been Warned: Central Bankers Turning Less Market-Friendly – Bloomberg
Having soothed investors for the past seven years with low interest rates, bond-buying and other interventions aimed at shoring up weak economies, monetary policy makers are slowly stepping out of markets in a variety of ways. That leaves investors facing renewed bouts of the volatility which marked recent weeks.
Biggest Nordic Currency Trader Says Norway Set to Deliver Cut – Bloomberg
“You can only fool the market for so long – it’s time to deliver.” That’s the view at SEB, Scandinavia’s biggest currency-trading bank, where chief strategist Erica Blomgren says Thursday is the day Norway’s central bank will deliver the rate cut it has clearly signalled will come this month. The bank can’t afford to disappoint because policy makers have a “fear of fuelling krone strength”, she said.
China’s Banks Buy $1.3 Billion FX in May, Indicating Inflows: Regulator – Reuters
China’s banks made net foreign exchange purchases of $1.3 billion for clients in May, the country’s forex regulator said on Wednesday, releasing data that helps dispel worries about possible capital flight from heavy outflows in recent months.