NY Bank Regulator Says Currency Probe Could Last Months – Bloomberg
New York bank regulator Benjamin Lawsky indicated he won’t block Barclays from settling a probe into its foreign currency trading operations by the US Justice Department provided the bank agrees to cooperate with a probe of his own that could stretch for months afterward.
EC Calls for More Time to Vet Foreign CCP Oversight – Risk Magazine (subscription)
The European Commission has run out of time to vet the supervisory regimes for almost 40 clearing houses in 14 jurisdictions, and is calling for the existing June 15 deadline to be pushed back by a further six months – the third time it would have been extended. The postponement would give more breathing space to CME Group, which has yet to be approved by the EC.
Sterling Retakes $1.50 after BoE Minutes – Financial Times (subscription)
The pound moved higher on Wednesday as investors pointed to hawkish signs within the minutes from the Bank of England’s April monetary policy committee (MPC) meeting. The MPC voted unanimously to keep interest rates on hold at historic lows, with two members saying their decision was “finely balanced.”
Why Are These FX Brokers Offering So Much Leverage? – Euromoney
While EU regulators debate the merits of introducing a leverage cap, one online broker offering extreme levels of leverage makes a case for the defence.
Ex-Currency Chief Sees Bank of Japan Exit Nightmare on Debt Pile – Bloomberg
Japanese government debt twice the size of the economy will make exiting stimulus a nightmare for central bank Governor Haruhiko Kuroda, according to the nation’s former top currency official.
Why Turkey’s Central Bank Isn’t Rattled by Worst Currency Slump – Bloomberg
This year’s worst-performing emerging-market currency isn’t as weak as it first appears. Even after the lira fell to repeated records this month, once inflation is taken into account, it’s still stronger than it was in January 2014 when its runaway decline forced the central bank to more than double its benchmark interest rate at an emergency meeting.