Top Headlines

Platform Volumes Historically Strong in December – Profit & Loss(subscription)
As the December figures begin to roll in, the first trading venues to report their FX volumes show overall growth year-on-year, but the expected mixed results month-on-month follow a strong November.

Banking Bonuses Set to Disappoint in City and on Wall Street – Financial Times (subscription)
Bankers on both sides of the Atlantic are fighting over a diminished bonus pool this year, according to executives.

Blog: Big Changes in Trader Behaviour – A Look Back at e-FX in 2014 –Bloomberg
In 2014, surveys celebrated that FX market participants use execution algorithms for some portion of their trading had reached 11%, up from 7% in 2012. While most market participants would characterise such usage (and growth) as “important”, it is hardly at levels that would be considered “significant”.

$4 Trillion Peak for China’s Stockpile of Foreign Currency May Free PBOC’s Hands – Bloomberg
China’s generation-long accumulation of foreign exchange reserves may be at an end, reshaping monetary policy and eroding a source of demand for US Treasuries.

Controversy at NFA Amid Board Elections – Profit & Loss (subscription)
There has been controversy at the National Futures Association (NFA) after claims from one of its board members that the association broke its own bylaws when electing independent directors and then tried to cover it up.

Lawyers Gear Up for Cases in Europe and ‘Last Look’ – FX Week(subscription)
The co-lead in the US class-action lawsuit expects more cases in Europe and for other areas of trading to come under scrutiny.

RBS FX Trader’s Arrest Said to Have Preceded Departure From UK –Bloomberg
UK prosecutors arrested Royal Bank of Scotland Group currency trader Paul Nash last month as he was about to leave the country, according to two people with knowledge of the matter.

Parker FX Index Up in November – Profit & Loss (subscription)
Currency funds tracked by the Parker FX Index remained in positive territory in November for a fifth consecutive month after benefiting from renewed volatility in the latter part of 2014.

Regulatory News

EU Benchmark Report Recognises Cross-Border Equivalence Challenge –Profit & Loss (subscription)
The European Parliament’s economic and monetary affairs (Econ) committee examined proposals to expand the regulation of financial benchmarks last week, but also recognised the ongoing issue of cross-border equivalence with third party regimes such as the US.

Europe’s EMIR Reforms May Cause Toothache in 2015 – FOW (subscription)
2015 will see the seventh anniversary of the collapse of Lehman Brothers and the bailout of AIG. In the aftermath of the chaos resulting from these failures, a raft of new financial regulation has been rolled out across the globe. Derivatives have been a particular focus of the new regulatory regime.

Market Concerned Over Margin Rules for Non-Cleared Derivatives – Profit & Loss (subscription)
Many market participants may struggle to meet new margin requirements for non-cleared derivatives due to uncertainty surrounding the new rules to be phased in from December 2015, according to a survey by the International Swaps and Derivatives Association (ISDA).

EMIR’s ‘Clearing College’ System Comes Under Fire – Financial News(subscription)
A new system for authorising clearing houses that operate across Europe has fallen prey to national interests and political infighting, according to a review by the top-level body regulating Europe’s securities industry.

Kicking Dodd-Frank in the Teeth – NY Times
The 114th Congress has been at work for less than a week, but a goal for many of its members is already evident: a further rollback of regulations put in place to keep markets and Main Street safe from reckless Wall Street practices.

Company News

TradAir Closes $15 Million Equity Round, Lewis Confirmed as Chairman –Profit & Loss (subscription)
FX technology firm, TradAir, has closed a $15 million growth equity round, while also confirming the news, first reported by Profit & Loss last year, that Cliff Lewis has joined the firm as its new chairman.

RBS Said to Weigh Sale of Asia Corporate Banking Business – Bloomberg
Royal Bank of Scotland Group is looking to put most of its Asian corporate banking business up for sale, according to a person with knowledge of the discussions.

Market Savvy

Dollar Takes a Breather Ahead of US Payroll Numbers
The dollar eased away from nine-year highs on Friday as investors trimmed long positions in the greenback ahead of US jobs data that could cement the case for a Federal Reserve interest rate hike in the next six months.

Press Releases

Virtu Financial Becomes a Participant of GMEX Exchange
Global Markets Exchange Group (GMEX) has announced that leading global electronic market maker Virtu Financial will become a liquidity provider.

ESMA Updates List of Authorised CCPs – CME Clearing Europe Re-Authorised For Extended Activities And Services
The European Securities and Markets Authority (ESMA) has published an update of its list of central clearinghouses (CCPs) which are authorised under the European Markets Infrastructure Regulation (EMIR). The update concerns CME Clearing Europe, which has extended its activities and services.

Industry Events