HSBC May Face Extra $1 Billion in FX Fines, US Compensation Costs –Reuters
HSBC Holdings has set aside $550 million (£358 million) more to cover potential fines for alleged manipulation of foreign exchange markets and warned it could face a $500 million bill to compensate US customers sold debt protection products.
Greece Debt Wrangling Hands Surprise to Euro Bears: Currencies –Bloomberg
The euro’s resilience amid political brinkmanship over Greece shows how the currency union is better insulated against shocks than five years ago.
Barclays FX Platform Warned Clients About Volatility Due to Greece – Reuters
Barclays has warned clients of its foreign exchange trading platform that a sharp drop in liquidity and “dislocations” in the euro could occur on Monday amid uncertainty about Greece’s position in the euro zone.
Euro Out of Steam After Rising on Greek Debt Deal, Caution Lingers – Reuters
The euro steadied on Monday as caution over Greece’s future persisted despite a conditional loan extension reached late last week.
Retail FX Clients Call For FCA to Investigate Sector Practices After CHF Losses – Profit & Loss (free story)
A group of 50 retail FX spread betting clients that experienced losses as a result of the sudden removal of the EUR/CHF peg is petitioning the UK’s Financial Conduct Authority to investigate current practices in the sector, Profit & Loss has learnt.
Pound Reaches Seven-Year High Versus Euro on Labour-Market Gains –Bloomberg
The pound reached a seven-year high versus the euro this week after jobs data signalled the UK recovery is holding up and as stalled negotiations on the future funding of Greece weighed on the common currency.
MPP Calls for Industry Codes to Be Introduced Under FEMR – Profit & Loss(free story)
The Market Practitioner Panel (MPP) has warned of the challenges inherent in reforming the fixed income, currency and commodities (FICC) markets, and says enhancing fairness and effectiveness will require a coordinated, concerted and sustained response by the industry, working together with policymakers and regulators on a continuing basis.
Banks Do Reality Check on Report of Capital Controls in Denmark –Bloomberg
On Friday, a report suggested Denmark might be considering capital controls to defend the krone’s peg to the euro. Denmark’s biggest banks have spent the hours since reassuring clients that such speculation is groundless.
FICC Revenues Fell in 2014 to Half 2009 Level – Profit & Loss (free story)
Revenue from the 10 largest investment banks’ fixed income, currencies and commodities (FICC) businesses fell by 7% year-on-year to $69.4 billion in 2014, due to lower client activity amid a challenging macroeconomic environment.
Trading Desks Walk a Tightrope – Financial News (subscription)
A major central bank decides to remove its currency peg. An investment bank’s traders scramble to take cover. The foreign exchange spot trading book is tens of millions of dollars in the red. Grey-faced executives are slamming their fists on the table.
London’s City Keeps Attracting Forex and CFD Brokers to the UK – Forex Magnates
The global nature of trading OTC products, along with sound regulation and an esteemed reputation, makes London a natural hub for the industry, as overseas participants continue to eye the City’s many perks.
East African Leaders Vow to Fast-Track Single Currency Plan – Shanghai Daily
East African leaders have agreed to rapidly push forward the planned creation of a Monetary Union to boost trade by signing a new treaty to expand the mandate of a regional court to resolve trade and investment disputes.