Global Tagging System Proposed for Derivatives Trades

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Top Headlines

Global Tagging System Proposed for Derivatives Trades – Reuters
Global regulators and central bankers have proposed a common tagging system for off-exchange derivatives transactions to spot more easily which banks could be at risk in a market crisis.

FX Trader Carlier Says Lloyds Fired Him for Whistle-Blowing – Bloomberg
Paul Carlier, a former foreign exchange trader at Lloyds Banking Group, is suing the UK-based lender, claiming he was dismissed for blowing the whistle on alleged malpractice.

Central Banks Engaging the Market in Debate over Structural Issues – Profit & Loss (subscription)
I have the distinct impression that central banks are trying to get more involved in the debate over structural change. The Bank of England has launched its Bank Underground series of blogs and the New York Fed’s Liberty Street Economics group is in the midst of a series of five papers on liquidity. And of course we have the Financial Stability Board establishing multiple committees and working groups to look at enhancing the market structure.

IMF Delays China’s Bid for Global Reserve Currency Status – Financial Times (subscription)
The International Monetary Fund has decided that China’s currency will not be included in a basket of reserve currencies for at least a year, delaying a move some had expected to take place as soon as January even as it took pains to stress the decision was largely procedural.

Treasuries Speed Trading Vaporizes Price Gap with Futures – Bloomberg
The ascent of high-speed trading in the past few years has strengthened the correlation between Treasuries and the futures contracts linked to them, according to research from the Federal Reserve Bank of New York.

Fintech 40: We’ve Seen the Future and It’s Blockchain – Financial News (subscription)
Blockchain, the technology behind the bitcoin electronic currency, may not have the best resume but big things are expected of it by the Fintech 40, the people identified by FN in June as the most influential in European fintech.

Former traders, Brokers Take on Compliance Roles – FOW (subscription) There is a growing trend across the financial services space of ex-­traders, brokers and bankers taking on compliance roles. This ‘poacher turned gamekeeper’ scenario is being embraced mainly due to the fact that those with experience of operating within the market, especially in a trading, market-facing role, can approach compliance functions with a different perspective.

 

Regulatory News

CFTC Staff Propose Amendments to Swaps Reporting Rules – Profit & Loss
Commissioners at the Commodity Futures Trading Commission (CFTC) have voted in favour of proposals to amend existing swap reporting rules. The changes are designed to provide additional clarity for swap counterparties regarding their reporting obligations for cleared swaps transactions and to improve the efficiency of data collection and maintenance associated with the reporting of the swaps involved in a cleared swap transaction.

 

Company News

EBS BrokerTec Closing in on Molten Markets Deal? – Profit & Loss
Market sources indicate that Icap-owned EBS BrokerTec is close to concluding a deal for the trading platform, Molten Markets.

JP Morgan, Goldman Sachs, Morgan Stanley to Form Data Company – Wall Street Journal (subscription)
JP Morgan, Goldman Sachs and Morgan Stanley are working to create a company that will pull together and clean reams of data used to determine pricing and transaction costs.

Thomson Reuters Publishes FXall Protocols – Profit & Loss
Thomson Reuters has published operational procedures for trading protocols on its FXall platform. The procedures, announced after consultation with the industry, include the codified Provisory Liquidity protocol announced earlier this year. The firm says the protocol enables liquidity consumers and providers “to make informed trading decisions based on transparent and measurable criteria”.

CME to Cut Minimum Guaranty Contribution for Rate Swap Clearing – Reuters
CME Group Inc plans to reduce by 70 percent the minimum contribution that clearing members in the interest rate swaps market must make to a guaranty fund because of increased trading, the exchange operator said on Wednesday.

 

Market Savvy  

Kazakhstan and Vietnam Weaken Currencies
Financial Times
Kazakhstan and Vietnam allowed their currencies to fall on Wednesday, fuelling expectations of further depreciations among emerging market countries that could trigger financial solvency problems.

Euro Area Agrees on €86 Billion Bailout Deal for Greece
Bloomberg
Euro-area finance ministers signed off on a bailout program for Greece of as much as 86 billion euros, paving the way for the nation to pay its bills and begin to rebuild its economy.

September or December Is Near-Irrelevant for Fragile Currencies
Bloomberg
Whether the Federal Reserve raises interest rates in September or December is turning out to be almost irrelevant for emerging-market currencies and those from nations that export minerals to China.

 

Press Releases

SGX Proposes Segregation of Collateral of Derivatives Clearing Members’ Affiliates
Singapore Exchange (SGX) is consulting the public on the proposed introduction of Affiliate Segregation where collateral of an affiliate of an SGX Derivatives Clearing member is protected if the member defaults on its own contracts. The affiliate’s positions may also be transferred to another SGX-DC member.

Hotspot to Hold Second Customer Call to Prepare for London Matching Engine Launch
Hotspot will host a second customer call/live audio webcast on Thursday, August 20 at 3pm BST/10am ET to discuss preparations and planning for the launch of the new London-based matching engine in the Equinix LD4 data centre on September 14, 2015, and the migration of the current US matching engine to the Equinix NY5 data centre in Secaucus, NJ, on November 9, 2015.

 

Industry Events