How Regulators Can Keep Bankers Honest – Wall Street Journal (subscription)
Banks have shelled out more than $10 billion in fines for trying to rig the foreign-exchange markets, including fines of $5.6 billion handed down by US authorities last month in a deal that saw five banks plead guilty to criminal offenses. Yet so far, no individual has been charged with a crime, while the share prices of the banks even rose on the day the fines were announced. Results of a UK review are due next week and could lead to recommendations to more easily punish bank employees.
Reputational Risk Driving Changes at the Banks – Profit & Loss (subscription)
Concerns about reputational risks are driving changes at the banks’ FX departments, according to speakers at Profit & Loss’ Forex Network New York conference last week.
Saxo CEO Dismisses ‘Opportunistic’ Clients Trading Swiss Franc – Bloomberg
Almost five months after Switzerland threw currency markets into a panic, Saxo Bank says clients who lost money trading the franc need to acknowledge their own mistakes and move on.
FX Volumes Rise in May – Profit & Loss (free story)
FX volumes rose strongly on a year-on-year basis in May, however the news was a little more mixed in month-on-month terms.
Here’s the Next Stage in Global Currency Wars – CNBC
According to Societe Generale’s Albert Edwards, the spark for a new round of “currency wars” – whereby countries manipulate foreign exchange to gain a global advantage – is the Japanese yen, which fell to its weakest against the greenback since 2002 on Tuesday.
CNH Tracker: Booming Offshore Yuan Trading Would Get Boost From SDR Inclusion – Reuters
The volume of Chinese currency traded in the offshore market has risen sharply in the past year, after more than 10 offshore yuan hubs were set up and more players switched to using it for payments and settlements.
Prime of Primes Reduce Reliance on Prime Brokers – FX Week (subscription)
PoPs have sensed an opportunity to cut costs with prime brokers by boosting capital and trading directly with banks instead.
Taiwan to Launch Yuan Forex Futures 20 July – Reuters
Taiwan will launch Chinese yuan forex futures on 20 July, four sources with direct knowledge of the matter said on Wednesday, in the island’s latest efforts to become a major offshore yuan market.
EM Currencies: Are Options the Way Forward? – Euromoney
Recent currency movements have highlighted the limitations of the forward as a hedging option for emerging market (EM) currencies.