Hotspot, Integral Join FXPA
The Foreign Exchange Professionals Association (FXPA) is pleased to announce the addition of two new institutional members: Hotspot and Integral Development Corp have joined ahead of the Feb 10 Board and Officer elections.
To find out how you can support the FX industry through education, research and advocacy, visit our website at www.fxpa.orgbecome an institutional member, and sign up for our newsletter, FXPA globalFXsource.

US Scrutiny of Barclays and UBS Widens Forex Trading Probe – Financial Times (subscription)
The US Department of Justice is scrutinising currency-linked investments marketed by Barclays and UBS in an indication that the sprawling global probe into the foreign exchange market may become more troubling for banks.

ACI Updates Model Code – Profit & Loss (free story)
The 2015 version of the code of conduct for financial markets adds new procedures and practices around aggregation, prime brokerage, last look, HFT, dark pools and algos, as well as tightens up various sections of the code as a result of changes in the regulatory world and the Fair and Effective Markets Review.

Banks Slash FX Leverage for Clients after Swiss Franc Rout – Reuters
Banks are cutting back on the credit they offer leveraged investors in foreign exchange, after an eruption in Swiss franc volatility one day last month forced changes in risk-management models, several industry figures said on Friday.

Firms Hike FX Margin Requirements – Profit & Loss (free story)
Firms are increasing FX margin requirements in the wake of the volatility caused by the Swiss National Bank’s decision to end the franc’s peg to the euro.

Central Banks Move to Drive Down Currencies, Yielding Domino Effect – Wall Street Journal (subscription)
Interest rate cuts, asset purchases ricochet through foreign exchange markets; “unspoken currency war has broken out”.

Saxo Bank Takes Hard Line on Customers’ FX Losses – Wall Street Journal(subscription)
When the Swiss National Bank suddenly let its country’s currency rocket on 15 January, Pawel Jaworski, a welding engineer from Elblag, Poland, was a loser.

SNB Will be Active in FX Market if Needed: Jordan – Reuters
The Swiss National Bank is prepared to intervene in foreign exchange markets and has room to lower already negative interest rates if necessary to weaken the franc, the central bank’s chairman said.

Time of Upheaval for Forex Markets – Financial News (subscription)
The foreign exchange markets thought the Swiss National Bank was as reliable as a cuckoo clock. Then it shocked the markets. Why were so few prepared for the move?

Rocking in Exotics Has Never Been More Attractive – FX Week (subscription)
An early mover gamble paid off for US broker INTL FCStone in exotic currencies trading. Philip Smith and Gregory Vincent explain why the payments business is growing.

FX Commission Fees ‘On Sale’ as Indian Exchanges Battle for Volumes –Forex Magnates
India’s leading derivatives exchanges continue to play the price war in commission charges for FX and equity options. NSE responds with a two-month extension on its discounted rate.

Regulatory News

Fed Eyes Further CCP Requirements  – Profit & Loss (free story)
The US Federal Reserve is considering whether major central counterparties (CCPs) should have to increase the size of their default funds and says they must improve their recovery and resolution plans.

New Israeli Forex Regulations Finally Come Into Effect – Leaprate
The minimum capital requirement to apply for a limited license under Israel’s new rules will be ILS 800,000 – or about $200,000, subject to heavy oversight by the Securities Authority. With ILS 1.5 million ($380,000) brokers will be allowed to acquire a full license, and the days of the b-book are numbered.

Company News

Alpari Fails to Find Buyer as Deutsche Bank Invests in Plus500 – Profit & Loss(free story)
The joint administrator for Alpari UK, KPMG, has sold the intellectual property to the firm after failing to find a buyer for the business. The assets, including the Alpari trademark, were sold back to Alpari Russia’s co-founder and main shareholder, Andrey Dashin.

Digital Vega Annual Activity Grows – Profit & Loss (free story)
Trading activity on Digital Vega’s multi-dealer FX option platform Medusa increased 160% over 2014, fuelled by the increased demand for electronic trading in these instruments.

Swiss Franc After-Effects Still in the Air, LCG Assesses Prime of Prime Solution – Forex Magnates
Listed multi-asset currency and CFD provider, London Capital Group, is reviewing its prime of prime offering to institutional clients. The review comes on the back of risk assessments across the industry.

FXCM Asia to Make Traders Fully Responsible for Account Balances –LeapRate
FXCM Asia Limited, the Hong Kong-based subsidiary of FXCM Holdings LLC, has sent its clients emails, informing them of changes to their client agreements.

Market Savvy  

Dollar Eases After Jobs-Inspired Rally, Eyes on Greece
Reuters
The dollar gave back some ground on Monday as traders sold into a rally triggered by robust U.S. jobs data, while Greece held investors’ focus after Athens reaffirmed its rejection of an international bailout programme.

Press Releases

OpenLink White Paper: Are SEFs Impacting Your Trading Strategy and Performance?
After the collapse of Lehman Brothers in 2008, global regulators focused their attention on the lack of transparency in the derivatives markets. New regulations have become new realities with the emergence of Dodd-Frank mandated swap execution facilities (SEFs).

Industry Events