Top Headlines

Pressure Builds to Move More FX Trading On To Exchanges – Reuters
International regulators struggling to rein in the global foreign exchange market are finally finding some support from asset managers warming to the idea of moving more trading onto exchanges.

UBS Client Claims Losses on Currency Product Probed by US – Bloomberg
Investigators at the Department of Justice are examining whether UBS traders short-changed investors by overcharging them when they carried out currency trades needed to execute its V10 Enhanced FX Carry Strategy.

Greek Talks With Euro Creditors Collapse As ‘Disaster’ Moves Closer – The Independent
Greece’s crunch talks with its European creditors broke down after just four hours, pushing the country closer towards a potential exit from the single currency.

RBS May Face Extra $15.4 Billion of Misconduct Charges – Bloomberg
Royal Bank of Scotland Group may have to set aside $15.4 billion in additional conduct costs, following probes into currency market rigging and US mortgage-backed securities, Keefe Bruyette & Woods says.

ACI Warns of ‘Over-Reliance’ on Automation – Profit & Loss
As part of its response to the UK’s Fair and Effective Markets Review (FEMR), ACI – The Financial Markets Association has warned of the “over-reliance” on electronic trading, and suggests that the imbalance between voice and e-trading has “diminished the fairness and effectiveness of the FX (spot) market”.

Sizeable Renminbi Devaluation a Major Tail Risk, Says BAML – FX Week (subscription)
A sizable devaluation in the renminbi is one of the top tail risks for the global economy in 2015, as the threat of imported deflation has accelerated sharply since the European Central Bank joined the list of policymakers who turned to negative interest rates and quantitative easing programmes, according to a research report from Bank of America Merrill Lynch.



Regulatory News

CFTC to Propose Swaps Anonymity – Wall Street Journal (subscription)
US regulators are poised to introduce measures that would ensure anonymity for traders in the $700 trillion market for swaps, a flip-flop that would hand a victory to hedge funds and speedy trading firms while dealing a blow to banks.

ESMA Says Trade Reporting Has Been A Success – FOW (subscription)
The European Securities and Markets Association (ESMA) has said the European trade reporting regime has bedded down despite initial teething problems. Since the implementation of mandatory trade reporting in February 2014, over 10 billion trades had been reported.

EU Council Backs Rules for Preventing Benchmark Manipulation – Profit & Loss
The Council of the EU is backing proposed rules to shore up the reliability of financial benchmarks which were introduced by the European Commission following the Libor manipulation scandal

Singapore Holds Back from Swaps Trading Mandate… For Now – Profit & Loss
The Monetary Authority of Singapore says it is not necessary to introduce a mandatory trading regime for OTC derivatives, including swaps, at the moment, but is not ruling out such a move in the future if it was “deemed necessary”

China Accelerates Financial Reform Agenda – Profit & Loss
In the past week China has further relaxed financial constraints, making it easier for foreign banks without full yuan (CNY) business licenses to buy or sell foreign currencies against the CNY, as well as allowing firms operating within the Shanghai Free Trade Zone to borrow funds without having to go through complex regulatory obstacles.



Company News

ICE Delays Opening of Singapore Futures Exchange – Today Online
Intercontinental Exchange (ICE) has delayed the start of a new futures marketplace in Singapore, which was scheduled to open 17 March.

No More Voice Trading in FX, Says Willis Treasury – Profit & Loss
Willis’ UK treasury head has sounded the death knell for voice trading in FX, saying that the global insurance broker will not deal with any bank that doesn’t implement its trading platform.

GSA Split Amicable, Gerko Says – FX Week (subscription)
GSA Capital’s head of FX trading, Alex Gerko, says his decision to spin out of the hedge fund and set up a proprietary market-making firm is the result of months of planning and the venture has the full support of GSA, with individual partners considering taking a share in XTX.

E-FX Growth Helps Drive Revenues at BGC – Profit & Loss
Fully electronic FX notional volume on BGC Partner’s system grew 71% in 2014, according to the firm’s full year financial report released last week.

ICE’s Sprecher Sees SuperDerivatives Acquisition as Serving Key Growth Area – FierceFinance IT
Intercontinental Exchange chairman and CEO Jeffrey Sprecher says he sees data consumption as a key growth area for the financial industry, and he expects his company’s acquisition of SuperDerivatives last year to help his company better serve that growth.

Nomura Adds Voice to Calls for FICC Trading Licence – Financial News (subscription)
Nomura has backed proposals for fixed income traders to gain professional qualifications, similar to those required by lawyers and accountants, in response to scandals that have beset the markets in recent years.



Market Savvy  

Anatomy of a Grexit: What Would Happen if Greece Left the Euro
Jonathan Loynes and Jennifer McKeown, economists at Capital Economics, look at the key issues and challenges of a Grexit, and explain how it might be best managed.



Press Releases

Societe Generale Corporate & Investment Banking Acquires a Stake in GMEX Group
Societe Generale Prime Services – formerly Newedge – has acquired a minority stake in Global Markets Exchange (GMEX) Group, becoming the second minority investor. The bank plans to provide execution and clearing services for clients trading on the exchange.



Industry Events