NY Fed Rejects Claims that Regulation is Damaging Market Liquidity – Profit & Loss In a speech delivered last week William Dudley, president and CEO of the Federal Reserve Bank of New York, refuted claims that tougher regulatory requirements for banks is leading to a decrease in liquidity in the financial markets.
Fed Odds Drop to 8% for October; El-Erian Says December Is 50-50 – Bloomberg The bond market shows traders see only an 8 percent chance the Federal Reserve will raise interest rates at its Oct. 27-28 meeting following weaker-than-expected employment growth.
Market Volatility Drives FX Revenue – FX Week (subscription) Macro-volatility is the driving force behind the increase, as it prompts clients to hedge Revenue from the G10 FX business at banks increased by more than two-thirds in the first half of this year.
Economists Bring Forward Forecasts for More BOJ Stimulus – Bloomberg Economists brought forward forecasts for when the Bank of Japan may next increase stimulus after economic data that pointed to the risk of the economy falling back into recession.
First Brokers Stand Trial over Libor – CNBC The first brokers to face prosecution in the global Libor investigation will go on trial this week in London.
Saudi Arabia Cuts Oil Prices Amid OPEC Price War – Wall Street Journal (subscription) Saudi Arabia on Sunday made deep reductions to the prices it charges for its oil, hard on the heels of cuts last month by rival producers in the Gulf.
Banks Face Erosion of Business Around Currency Fix – FT.Com (subscription) The dominant banks in currencies trading are facing an erosion of their business around key industry benchmarks to independent venues in the wake of the forex market rigging scandal.
Out With The Old, in With The New – FIX Global Trading Roger McAvoy, 360T Trading Networks examines ongoing transparency initiatives in FX trading.