Top Headlines
Last Look in the Spotlight for ACI’s Model Code – Profit & Loss
The eternally tricky subject of last look is being reviewed by the Committee for Professionalism at ACI – The Financial Markets Association with a view to a potential re-write of guidelines published in ACI’s Model Code.
EU Push to End Swaps-Collateral Rule Delay Hits Snag on Pensions – Bloomberg
The European Union’s chief financial regulators rejected draft changes to collateral standards for derivatives, further complicating Europe’s efforts to complete the rule after failing to meet a global deadline this month.
Rumours of Basel IV Death Exaggerated as Lobbying Intensifies – Reuters
European bank supervisors have stepped up their campaign against ‘Basel IV’ ahead of a critical meeting of global regulators that could add hundreds of billions of euros to capital requirements.
Hidden Foreign Currency Fees ‘Cost Small Businesses Billions’ – The Times
Small companies are losing billions of pounds in hidden bank fees for exchanging currencies, according to a study by Capital Economics.
Ruble Bonds for Masses Next Stop for Russia After Free Float – Bloomberg
Russian companies are considering a borrowing instrument last seen in the days of currency control and unfettered access to international capital markets – ruble Eurobonds.
Banks Find Blockchain Hard to Put into Practice – Financial Times (subscription)
Banks are rushing to adopt blockchain — the database technology that underpins bitcoin — in order to cut costs, but technologists and business people are having to make drastic changes to force the radical technology to adhere to the norms of the banking world.
What Happens if the Euro Collapses? – Seeking Alpha
If the EU breaks the euro, it is unclear what the next steps would be, but it would almost certainly result in the replacement of euro deposits with national currencies.
Brokers Woo New Clients, Try Not to Upset Old Ones – Risk (subscription)
Interdealer brokers are trying to grow and diversify their client base, as banks retreat from certain products and markets.
Cyber Attacks Raise Questions About Blockchain Security – Financial Times (subscription)
A series of cyber attacks against digital currencies has left the financial services industry wondering whether new blockchain technology can be made secure enough from criminals.
Regulatory News
Europe Eyes Easing of Derivatives Reporting Rules – Financial News (subscription)
The European Union wants to reduce reporting requirements for derivatives as part of a wider drive to reduce the burden of post-crisis reforms, according to the bloc’s new financial services commissioner.
Schaeuble Goes Global to Crack Financial Transaction Tax Dilemma – Bloomberg
After five years of fruitless talks on a European financial-transaction tax, frustrated policy makers including Germany’s Wolfgang Schaeuble are talking up the prospect of a global levy that would make sure banks pay their fair share.
Discussions are still ongoing as to whether to fold the banking and insurance regulators under the purview of the People’s Bank of China, officials said.
Egypt is About to Slash the Value of Its Currency to Revive its Flagging Economy – Forbes
Egypt’s Finance Minister Amr El Garhy has said his country needs to move faster in dealing with its currency woes, opening up the possibility of a large and rapid devaluation of the Egyptian pound.
Company News
Sequoia Capital Attracts Investment – Profit & Loss
Systematic FX manager Sequoia Capital Fund Management has reached a key landmark in its growth, the firm says, revealing that at the start of trading this month the London-based fund passed $100m in assets under management.
No, ABN Amro Isn’t Releasing its Own Bitcoin Wallet – CoinDesk
Dutch banking giant ABN Amro has denied it is seeking to release a bitcoin wallet.
Citi’s Annual ‘E for Education’ Campaign Launches – FX Week (subscription)
The bank will donate $1 for every million of FX transacted; the initiative has raised $12 million in past years.
Market Savvy
Yuan Strengthens Against US dollar Despite PBOC Lowering Currency – South China Morning Post
The yuan strengthened against the US dollar on Monday, despite the People’s Bank of China lowering the currency by the most in two weeks.
Global Stocks Sell Off Boosts Yen, Dollar Supported by Fed Rate Hike Talk – Reuters
The safe-haven yen was the winner on Monday as investors sold stocks and riskier assets including commodities, but the dollar outperformed higher-yielding currencies on fresh talk of an interest rate hike by the Federal Reserve in the near term.
Ruble Trims Weekly Gain as Sberbank CIB Says Currency Too Strong – Bloomberg
The ruble ended a five-day advance and Russian government bonds dropped, sending yields up the most since July, as oil retreated and Sberbank CIB said the second-best rally this year in emerging markets left the exchange rate overvalued.