Is the FX Industry Set for a Period of Consolidation? – Profit & Loss (subscription)
With rumours swirling around about a number of multi-dealer platforms that could be up for sale, it may be that the FX industry is now set for a period of consolidation. A number of platforms launched in 2012 are nearing the end of their three-year funding plans and have reached a “sink or swim” moment. The regulatory landscape is beginning to change the market and therefore enticing new players into the industry and BATS Global Market’s acquisition of Hotspot has shaken things up in the platform space. All of which could cause a perfect storm that ends in consolidation. But which platforms could be up for sale and who are the potential buyers?
Greek Debt Crisis: ECB Forced to Intervene to Prevent Banking Collapse – The Telegraph
New Greek proposals will be assessed by eurozone leaders at today’s emergency summit, as emergency liquidity for banks is extended.
Banks ‘Deserve What They Get’, Says Regulator – Financial Times (subscription)
Banks “deserve what they get,” one of the world’s top regulators has said, in a salvo against the industry as it begins to push back against tough regulation and ever higher penalties. Greg Medcraft, the straight-talking head of Australia’s financial watchdog who also chairs the grouping of the world’s securities regulators, said fines that “hurt” banks – combined with personal accountability laws that jail wrongdoers – were two ways to tackle a culture that had “betrayed the trust of the world.”
Sefs Face Uncertain Future Amid Regulatory Delays – FX Week (subscription)
Swap execution facilities that cater for foreign exchange trading face an uncertain future, with the delays to mandatory non-deliverable forwards clearing in the US and Europe likely to hold off a meaningful migration of these contracts to Sefs until at least 2019.
Forex Platforms Seek New Ways to Curb Last Look Abuse – Risk Magazine (subscription)
Rules for last look liquidity providers are being tightened up by platforms that offer such liquidity streams, but the traditional way of limiting response time for market-makers may become outdated, as venues look to filter toxic liquidity from customer streams before flashing orders could appear on customers’ screens.
Hayes Tried to Influence Colleagues after Joining Citi, Libor Trial Hears – Reuters
Tom Hayes, the former star trader on trial for alleged Libor-rigging, tried to build up relationships at Citigroup soon after joining from UBS, hoping to influence the rate-setting process there, according to evidence presented in a London court on Friday.
China’s Renminbi Liberalisation Leaves Capital Controls Intact – Financial Times (subscription)
China is close to its goal of making the renminbi convertible for investment purposes, a senior Chinese central banker has said, highlighting Beijing’s view that strict controls on cross-border capital flows are consistent with convertibility.