A New York judge has thrown out a class action lawsuit led by Axiom Investment Advisors against Deutsche Bank, which claimed the bank abused the practice of last look in its foreign exchange trading.
Unhedged FX Risks Hit Corporate Earnings – Profit & Loss
The results of a risk management survey by HSBC show that 70% of CFOs said that their companies have experienced lower earnings due to significant unhedged FX risk in the past two years, and these were risks which their treasuries could have avoided.
Fewer traders are managing greater volumes of trading in rates, while the volume of electronic trading is increasing across instruments.
So-called passive funds have trounced their active peers in recent years. But that doesn’t mean these strategies are a safe bet for the future.
On the one hand, dealers are itching to talk about the clever ways they plan to make money from proprietary data – information about order flows and client positioning, for example – but equally they are terrified about how clients might react.
Ten years ago this week, Lehman Brothers Holdings collapsed, triggering the worst financial crisis in almost a century, a seismic event that still reverberates today.
- From Trump to Trade, the Financial Crisis Still Resonates 10 Years Later – The New York Times
- After the Crisis, the Banks are Safer But Debt is a Danger – Financial Times (subscription)
Corporates are fretting that the benefits of a proposed European reprieve from reporting derivatives transactions to trade repositories will be limited, because legislators are divided over how to treat European Union corporates’ trades with non-EU banks.
French Banking Federation says all intragroup transactions for risk management should be exempt from Emir clearing obligations.
The new service is set to help investment managers meet reporting obligations for the end of April 2019.
The UK’s prudential regulator has instructed banks to submit data on risks not covered by the model they use for calculating initial margin under the non-cleared margin rules.
Could the aftershock of Brexit land a win for the US?
It’s still early days for regulators and cryptocurrencies. But with growing interest from retail investors in crypto currency markets, regulators are increasing their scrutiny of the digital currency.
Highly anticipated trials using the technology underpinning cryptocurrencies are being sidelined or cancelled entirely.
Cryptocurrency prices suffered another blow as the main US regulator temporarily halted trading in a pair of securities tracking the most popular digital assets.
With digital currency trading volume having plunged, some of the biggest crypto exchanges are turning to unorthodox practices to boost activity and win market share.
Two financial technology companies won New York state approval to issue cryptocurrencies pegged to the US dollar, creating more regulated and transparent competitors to Tether and other so-called stable coins.
- Gemini Launches USD Pegged Cryptocurrency – Profit & Loss
- Bitcoin Rises Above $6,300 as NY Approves Dollar-Linked Digital Currencies – Reuters
Chain and Lightyear, built around the technology underpinning bitcoin, are combining into a new company called Interstellar.
Galaxy Digital, the cryptocurrency-focused merchant bank set up by former Goldman Sachs partner Mike Novogratz, has opened an office in London.
Thomson Reuters has introduced Trade Performance Analytics (TPA) for FXall users, a new analytics solution aimed at helping FX traders assess the quality of their trade execution, identify new opportunities to improve performance, and demonstrate best execution to their stakeholders.
Millions in projected cost-savings at Refinitiv – previously Thomson Reuters’ Financial & Risk division – will be a key consideration for investors mulling the US$13.5bn-equivalent loan and high-yield bond sale financing the buyout of the business.
The firms will combine TNS’ market connectivity and hosting solutions and Exegy’s Trade Port FX, which delivers normalised FX market data and execution services to major FX venues, to offer a fully managed and integrated FX trading platform.
Danny Wilkinson, one of six brokers cleared of rigging the key Libor benchmark rate, has returned to London to help unearth potential wrongdoing among traders. Wilkinson has been appointed market surveillance director at startup Raidne.
IHS Markit says that MarkitSERV now offers integration with execution management system BidFX for straight through post-trade processing of FX trades, including FX spot, forwards, swaps and NDFs.
Danske Bank has joined Eurex Clearing’s partnership program and has become a clearing member for OTC interest rate derivatives.
Sterling trimmed earlier gains but held near five-week highs in volatile trading on Tuesday, with sentiment boosted by overnight comments from the European Union’s chief negotiator that a Brexit deal is possible within weeks.
The euro rose on Tuesday as easing concerns about Italian debt boosted the single currency for a second day, while broader moves in forex markets were contained as investors fretted about the next developments in the Sino-US trade dispute.
Foreign exchange and sovereign debt markets showed signs of life in early Asia Pacific trading with currencies losing ground against the dollar and Australian dollar touched a 29-month low.