Goldman Sachs to Pay $110 Million to Resolve Forex Probes

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Top Headlines

Goldman Sachs to Pay $110 Million to Resolve Forex Probes – Bloomberg

Goldman Sachs Group has agreed to pay about $110 million to resolve allegations that its foreign exchange traders improperly shared information about client orders on an electronic chat room, putting clients at a disadvantage.

Dollar Break Above Key Level Prompts Investor Rethink – Reuters

The dollar consolidated gains after hitting a three and a half month high in the previous session as investors waited for the outcome of a US Federal Reserve policy meeting where policymakers may outline the future outlook on interest rates.

Sterling Extends Bounce as UK Construction PMI Beats Estimates – Reuters

Sterling rose, extending gains from earlier in the day as better-than-expected construction PMI data calmed investors after a selloff that took the currency five percent lower against the dollar in two weeks.

London Stock Exchange Clearing Unit Expands Asia Offering – Reuters

The London Stock Exchange’s clearing arm LCH has begun clearing interest rate swaps denominated in yuan, won and rupees to bolster its Asia base as euro business faces the threat of relocation.

Vol Virus: How a CCP Basis Leapt from Swaps to Swaptions – Risk (subscription)

A clearing house basis has opened up between JSCC and LCH on yen swaptions – despite neither clearing the product.

Barclays CEO Rules Out Move Into Crypto Trading – Financial News (subscription)

Jes Staley says the bank has no immediate plans to set up a dedicated desk for trading cryptocurrencies.

Global Market Volatility Now a ‘Made in the USA’ Phenomenon – Bloomberg

The US is home to the world’s largest economy, the global reserve currency – and now, the rebirth of market volatility.

Regulatory News 

CFTC Unlikely to Change Horses Midstream – Wall Street Journal (subscription)

Giancarlo feels he has much to do beyond April 2019, when his current term expires.

Broker Research Model Comes Under Fire as Effects of New Mifid II Regulations Start to Play Out – City AM

According to a new survey from broker Peel Hunt, this strategy – which many corporates are willingly using in the hope that research on their company will fall across investors’ desks – may actually provide little benefit to the corporate.

World’s Second Most Valuable Cryptocurrency Under Regulatory Scrutiny – Wall Street Journal (subscription)

Securities, commodities officials examine whether ether, other cryptocurrencies should be regulated.

UK Cryptocurrency Bodys Calls for Regulatory Intervention to Legitimise the Market – Finextra

The UK cryptocurrency community is calling on the Government and the Financial Conduct Authority to toughen up rules governing the trading of virtual currencies and to issue licenses to firms which demonstrate compliance.

Company News

Fastmatch Tape the Highlight in Early FX ADV Reports – Profit & Loss

The first three platforms to report average daily volume (ADV) for April paint a mixed picture with Euronext’s Fastmatch FX seeing an uptick in activity from March and Cboe FX and GTX seeing a slight decline. All three venues are higher on a year-on-year basis.

Santander Makes Statement with Brown Hire – Profit & Loss

Profit & Loss understands from market sources that Andrew Brown, formerly global head of FX at HSBC and BBVA, is to join Santander in the same role.

Barker Joins Sucden – Profit & Loss

Darren Barker has joined Sucden Financial’s FX team to help expand its institutional client base, selling the firm’s range of electronic and voice services.

Eurex Pushes FX Suite with New Incentive Schemes – FOW (subscription)

Last Thursday the Deutsche Boerse-owned exchange reported Q1 revenue was up 10% on last year.

Market Savvy

Canadian Dollar Rallies After Poloz Speech – Financial Times (subscription)

The Canadian dollar trimmed back its losses after Bank of Canada governor Stephen Poloz said the economy is operating at near full capacity and that higher interest rates will be required over time.

Swedish Krona Hits Lowest Level Since 2009… Again – Financial Times (subscription)

Sweden’s currency sagged to yet another nearly-nine year low against the euro, with investors focused on the ever-cautious Riksbank, tepid core inflation and a slowing housing market.

Bank of America and Goldman Clash on Where the Aussie Is Heading – Bloomberg

Bank of America Merrill Lynch reckons the Australian dollar will rise to 77 US cents by year end driven by higher local interest rates. Goldman Sachs Asset Management says the currency is heading south with the central bank on hold.