Greece’s Parliament Passes Austerity Measures Required for Bailout – Wall Street Journal (subscription)
Greece’s Parliament passed austerity measures needed to secure a fresh bailout, but a rebellion within the ruling Syriza party is testing whether Prime Minister Alexis Tsipras can hold his government together as he seeks to complete the deal.
FX Forwards Still a Systemic Risk, Warns Academic – Profit & Loss (free story)
The gains to the stability of the financial markets by requiring FX NDFs to eventually clear and trade on swap execution facilities (SEFs) are far outweighed by the risks allowed to continue by exemption physically delivered products, one prominent academic has warned.
Brazil Currency Probe May Grow, Trading Ban Unlikely – Reuters
Brazil’s investigation of an alleged currency cartel formed by 15 of the world’s largest banks could expand to more financial institutions but it is unlikely to result in trading bans, the head of antitrust watchdog Cade told Reuters on Wednesday.
Bad News Comes in Threes for Commodity Currencies – Financial Times(subscription)
Just about everything that could have gone wrong for a commodity currency overnight went wrong for commodity currencies overnight.
Pragma: Trading Patterns Unusually Predictable at the WM/R Fix – Profit & Loss (free story)
Moves to eradicate manipulation in the popular WM/Reuters FX benchmark rates have created opportunities for market makers and proprietary traders to trade more profitably, according to new research from Pragma Securities.
Back to the Fix: One Observation and One Prediction – Profit & Loss(subscription)
I was reading a research note today and it confirmed everything I have thought about Fix execution – it’s like knowing a car crash is coming, and being able to do nothing about it.
Greenwich: Half of Investors’ FX Notional Volume Executed on MDPs – Profit & Loss (free story)
Institutional investors and large corporates trading electronically now execute 49% of their FX notional volume via multi-dealer platforms, up from 45% in 2013 and 38% in 2008, according to a report from Greenwich Associates.
Behind China’s Dwindling Forex Reserves, a Plan to Boost the Yuan – Wall Street Journal (subscription)
If changes in China’s foreign exchange reserves are any indication, the country’s central bank continued its intervention in the currency market last quarter. The goal: to bolster the yuan’s exchange rate.