Many Asset Managers in the Dark on FX Ordering Process, Manipulation

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Top Headlines

Many Asset Managers in the Dark on FX Ordering Process, Manipulation – The Asset (subscription)
Asset managers and other buy side participants in foreign exchange trading should understand the FX ordering process of their respective banks, while banks and sell side firms should explain and document the ordering process to prevent the level of misconduct that has resulted in billion dollar fines arising from allegations of manipulation in global FX markets.

Martin Wheatley Admits Disappointment at Leaving FCA – Financial Times (subscription)
The recently ousted head of the Financial Conduct Authority has admitted he is disappointed to be leaving the City watchdog. In his first public appearance since his departure was announced on Friday, Martin Wheatley said on Wednesday he was “disappointed to be moving on” and “did so with a sense of unfinished business”.

Hayes Lawyer Calls Client More Austin Powers Than James Bond – Bloomberg
Tom Hayes’s requests of his brokers and Libor submitters to move the benchmark were so overt that it stretches credulity to believe he knew he was doing something wrong, his defence lawyer said.

Uneven Progress Towards Close-Out Netting in Asia – Isda Comment – Asia Risk
A critical risk management instrument is still not available in certain jurisdictions, say Isda’s Asia team.

Unique Identitifier Codes – The Jury is Still Out – FOW (subscription)
On June 10, 2015 the swap data depositories of DTCC, ICE and CME collectively responded to the SEC’s Final Rule on Security­-Based Swaps Reporting (SBSR). This collective response focused exclusively on the details of UICs (Unique Identity Codes).

 

Regulatory News

Regulators Could Be Responsible for Next Financial Crash – The Telegraph
Tighter bank regulation may end up destabilising financial markets and trigger a larger crisis than the 2008 crash, a report by researchers at the Systemic Risk Centre at the London School of Economics has warned.

FDIC’s Hoenig Leads Campaign Against Easing Swaps-Margin Rules – Bloomberg
Thomas Hoenig, vice chairman of the Federal Deposit Insurance Corp., is fighting congressional efforts that have made progress in freeing large banks from having to hold collateral against derivatives used internally.

 

Company News

BNY Mellon Reports FX Revenue Increase – Profit & Loss (free story)
BNY Mellon says second quarter income from FX trading was $181 million, up from $129 million in Q2 2014, but down from $217 million in the first quarter of 2015. First half FX revenues were $398 million, also up on H1 2014.

Deutsche Boerse Gets Go Ahead for Singapore Clearing Business – The Business Times
Deutsche Boerse has won final approval to run a clearinghouse in Singapore, bringing the company a step closer to opening a derivatives exchange in Asia.

FX SpotStream Unveils New GUI – Profit & Loss (free story)
LiquidityMatch-owned platform FX SpotStream has launched a new GUI based upon HTML5 technology that allows clients to launch the interface without the need to download software to a local PC.

First Cross-Border Repo Executed in Chinese Bond Market – Central Banking (subscription)
ICBC’s Singapore branch has raised 200 million yuan on China’s interbank bond market in the first deal since the People’s Bank of China opened it up to foreign investors in June.

 

Market Savvy  

Pound Higher after Bank of England Minutes
Financial Times (subscription)
Sterling’s ascent continued on Wednesday, after minutes from the Bank of England’s July rate-setting meeting encouraged a hawkish view on the outlook for UK monetary policy.

A $4 Trillion Force from China That Helped the Euro Now Hurts It
Bloomberg
For almost a decade, China’s effort to diversify the world’s biggest foreign exchange reserves supported the euro. Now, the almost $4 trillion force may be working against the single currency.

Dollar Steadies After One-Day Slide Worries Bulls
Reuters
The dollar lost more ground on Wednesday after profit-taking drove its biggest decline in a month in the previous session, casting more doubt on whether it can rally further after a year of gains.

Midnight Witness Tracks Gold Crash
Financial Times
In the small hours of Sunday morning, when most traders in London were asleep, one gold broker who was suffering a restless night said he happened to check the price of the precious metal on his iPhone.

Grexit Debate Down But Not Out, Argentina Lessons Remain
Reuters
Greece just narrowly avoided crashing out of the euro but for skeptics the clock is already ticking on when large-scale default and exit from the “irreversible” euro club are raised once again.

 

Press Releases

CFTC Extends Designation of DTCC-SWIFT as LEI Provider
The US Commodity Futures Trading Commission has issued an order extending the designation of the utility operated by DTCC-SWIFT as the provider of legal entity identifiers, or LEIs, pursuant to the Commission’s swap data recordkeeping and reporting rules.

 

Industry Events