Market Bets Abound, but Where are the Banks?

globalFXsource0

Top Headlines

Market Bets Abound, but Where Are the Banks? – Wall Street Journal (subscription) As market gyrations make and break fortunes, banks are on the side lines, constrained by post-crisis rules on risk.

Global Markets Bounce Back – Wall Street Journal (subscription) Stocks around the world extended gains Thursday as investors looked for signals of how central banks will contend with upheaval in financial markets.

Catching the FX Bug – Profit & Loss (subscription) Whilst a career in FX might not be top of mind for many women, once they get a taste of the job they are hooked.

UK Government Exploring Use of Blockchain Recordkeeping – CoinDesk The UK government is exploring the use of blockchain technology in a bid to improve the transparency and accuracy of its record keeping.

European Banks Fight Back in Fixed Income – Financial Times (subscription) Europe’s slimmed-down investment banks are stealing market share from US rivals in global fixed income, currency and commodities trading, new research shows – challenging the belief that American groups are winning more business across the board.

 

Regulatory News

Market Calls for US and Europe to End Derivatives Dispute – Financial Times (subscription) Two high-profile markets advisers have called on the US and Europe to end their long-running dispute over harmonising derivatives rules, arguing rapid resolution is needed to prevent global derivatives markets from fragmenting.

FEMR – Another Brick in the Wall? – Profit & Loss (subscription) The UK’s Fair and Effective Markets Review was eagerly awaited and generally well received, but, Profit & Loss asks, has it actually changed anything?

 

Company News

Speed Bumps Hit a … Speed Bump – TabbForum When IEX introduced its speed bump, its purpose was to make it harder for high-frequency traders to take advantage of latency arbitrage, and the adoption of speed bumps by other trading venues was inevitable.

CME Guaranty Fund Cut Could Lure New Clearing Members – Risk Magazine (subscription) Regional banks and prop shops are eyeing direct membership, but the lower minimum guaranty fund contribution does little for existing FCMs CME Group’s decision to slash its minimum guaranty fund contribution for interest rate swap clearers by 70% has piqued the interest of would-be clearing members.

 

Market Savvy  

Draghi Seen Sharpening Language as ECB Fights Low Inflation – Bloomberg Weaker commodity prices, slowing trade and a rout in global equities make it likely the European Central Bank president will downgrade the institution’s quarterly inflation forecasts at his press conference on Thursday.

Euro Steadies After Recent Gains with Focus on ECB – Reuters The euro steadied on Thursday, having rallied 1.5% on a trade-weighted basis since China devalued the yuan last month, with the focus on whether the rise could prompt the European Central Bank to try to talk it down.

Yuan Pessimism Eases on China Central Bank Efforts, Asia FX Sentiment Less Bearish – Reuters Poll Bearish views on the Chinese yuan eased in the last two weeks as the central bank worked to stabilize the currency after its surprise devaluation last month sparked fears of a global currency war, a Reuters poll showed.

 

Press Releases

CME Group FX Volume Averaged 890,000 Contracts per Day in August 2015 CME Group foreign exchange volume averaged 890,000 contracts per day, up 33 percent from August 2014. The average daily notional value of FX contracts traded in August was $91 billion.

Icap Electronic Markets Volumes August 2015 Average daily volume on the EBS platform in August was $100.3 billion, 22% higher than the $82.1 billion recorded in July.

Moscow Exchange Trading Volumes in August 2015 FX Market turnover grew 86.7% to RUB 31.7 trillion, including spot trades of RUB 11.6 trillion and swap trades of RUB 20.1 trillion.

 

Industry Events