Top Headlines

Microsoft Joins FXPA The Foreign Exchange Professionals Association (FXPA) is pleased to announce the addition of Microsoft as the newest Advisory Member of the FX trade group. “We look forward to serving as an Advisory Member, helping shape dialogue with a broad spectrum of stakeholders in the industry to maintain a strong FX market,” says Tahreem Kampton, Senior Director, Microsoft.

Hong Kong Dollar Forwards Sink to Weakest Since ’99 on Peg Bets – Bloomberg Hong Kong dollar forwards sank to their weakest level this century, interbank loan rates jumped the most in seven years and the Hang Seng Index tumbled as China’s market turmoil fueled speculation the city’s 32-year-old currency peg will end.

Hedge Fund That Called Subprime Crisis Urges 50% Yuan Drop – Bloomberg Mark Hart, the hedge fund manager whose bets against U.S. subprime mortgages and European sovereign debt proved prescient, said China should weaken its currency by more than 50 percent this year.

The Weak Spot in China’s $3.3 Trillion Foreign Reserve Stockpile – Bloomberg By almost all measures, China’s $3.3 trillion foreign reserves, the world’s largest, look formidable. Except one. Compared with the amount of yuan sloshing around in the economy, a proxy for potential capital outflows, China’s firepower seems limited.

European Experiment Comes to a Reckoning – Wall Street Journal (subscription) Stagnating growth and multiple crises show member countries’ self-interest trumps the cohesion of the union.



Regulatory News

Brazil Central Bank Cast Doubt on Rate Hike as Outlook Worsens – Reuters The Brazilian central bank on Tuesday signaled that a worsening recession could force it to abandon plans to aggressively raise interest rates to battle inflation at a 12-year high.

European CCPs Start Publishing Quant Data – Profit & Loss The European Association of CCP Clearing Houses (EACH) today announced that central counterparties (CCPs) are publishing a broad set of quantitative data on their websites in compliance with the international guidance provided by the Committee on Payment and Market Infrastructures and the International Organization of Securities Commissions (CPMI-Iosco).



Company News

Kraken Acquires Two Rival Bitcoin Exchanges – Profit & Loss San Francisco-based bitcoin exchange, Kraken, is set to acquire two other bitcoin exchanges, Coinsetter and Cavirtex.



Market Savvy  

Stocks Slide on Oil Rout – Wall Street Journal (subscription) Global stocks resumed their recent selloff as oil prices sank to a 12-year low and resurgent concerns about global growth snapped a brief bout of stabilization in financial markets.

Developed Economies Likely to Benefit While Emerging Economies Likely to Suffer in Fourth Industrial Revolution – UBS UBS today released a white paper titled Extreme automation and connectivity: The global, regional, and investment implications of the Fourth Industrial Revolution at the World Economic Forum Annual Meeting 2016 in Davos, Switzerland.

BoE’s Carney Says Tightening Still Unwarranted – Profit & Loss Bank of England Governor Mark Carney says that current market conditions do not yet warrant a tightening of monetary policy and that recent developments, both domestic and global, suggest that the Bank’s long-held inflation target will take longer to achieve than originally thought.

Saudi Arabia Said to Ban Betting Against Its Currency – Bloomberg Saudi authorities ordered banks to stop allowing cheap bets on a currency devaluation, according to five people with knowledge of the matter.

Ruble Trades at Record Low as Oil Collapse Eclipses Sanctions – Bloomberg The ruble plunged to a record low as the collapse in crude weighed on the world’s biggest energy exporter.



Press Releases

ITG Names Minder Cheng as Chairman of Board of Directors and Frank Troise Starts as CEO, President and Board Member – ITG ITG, a leading independent broker and financial technology provider, announced that Minder Cheng has been appointed Chairman of its Board of Directors and Frank Troise has joined the company as Chief Executive Officer, President and member of the Board of Directors, effective January 15, 2016.



Industry Events