Question of Whether to Reveal Client Names Delays FX Trials, Sources Say

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Question of Whether to Reveal Client Names Delays FX Trials, Sources Say – Profit & Loss (subscription)
Multiple sources are saying a big part in the delay in the tribunal process for some of the dealers dismissed over the chat room fiasco comes down to revealing client names. Lawyers are still thrashing out the details of whether client names will be redacted ahead of the hearings.

CLS Eyes EM FX Growth, New Products – Euromoney
CLS, the provider of settlement services for FX, is inching closer to bringing the Hungarian forint into the fold of currencies it settles. This is just one of a catalogue of projects the group is working on, as it extends its settlement reach further across the FX world.

The Blockchain Revolution Gets Endorsement in Wall Street Survey – Bloomberg
Bitcoin supporters argue the software that makes the digital currency possible could accelerate trading on Wall Street. A new survey from Greenwich Associates suggests financial services professionals are on board. The software is touted as a way to speed up and simplify how trades of everything from stocks to loans and derivatives are processed.

Interdealer Brokers Bet on RMB Boom – Euromoney
Interdealer brokers are set to be big beneficiaries of the rapid growth and development of the renminbi, say market players. The internationalisation of the Chinese currency has created opportunities for new business across the financial services industry, and IDBs are looking to ride the wave of RMB progression.

Central Banks Dump Up To $260 Billion FX Reserves in Q2 – Citi – Reuters
Central banks dumped as much as $260 billion of foreign exchange reserves in the second quarter as emerging market central banks tried to mitigate the impact of capital fleeing their own economies, according to Citi. The decline is the largest drop in global FX reserves in more than a decade.

Greek PM Keeps Lid on Party Rebellion to Pass Bailout Vote – Reuters
Greek Prime Minister Alexis Tsipras contained a rebellion in his left-wing Syriza party to win parliamentary approval on Thursday for a second package of reforms required to start talks on a financial rescue deal.

 

Regulatory News

FX Traders Have Been Shocked into Behaving Themselves But it Might Not Last, Says BoE Director – The Telegraph
FX traders are behaving themselves in the wake of a series of fines and investigations, according to Chris Salmon, the Bank of England’s markets boss. As a result, conduct has improved, but more concrete action is needed to make it a permanent change, he said.

The Case for a Tax on Financial Transactions – The New York Times
Senator Bernie Sanders of Vermont, who is seeking the Democratic nomination for president, has proposed a financial transaction tax: a small excise tax, typically a few hundredths of a percent, on trades of stocks, bonds, derivatives and other securities.

Obama Picks FX Academic for Fed Board Seat – Profit & Loss (free story)
President Barack Obama intends to nominate University of Michigan economist and foreign exchange expert, Kathryn Dominguez, for a seat on the Federal Reserve’s Board of Governors.

 

Company News

Steptoe Expands Financial Services Practice – Profit & Loss (free story)
Law firm Steptoe & Johnson has announced a major expansion of its Financial Services practice in Washington with the arrival of Micah Green and his six-member team from Squire Patton Boggs.

Demand for Taiwan RMB Futures Puts Hong Kong in the Shade – FX Week (subscription)
The Taiwan Futures Exchange (Taifex) says the exchange-traded instruments launched this week are a ‘milestone’ in offshore market development, but an analyst believes foreign investors are unlikely to bite.

Banks’ New Messaging Startup Gets Questions from Regulator – Wall Street Journal (subscription)
New York’s top banking regulator has asked Symphony Communication Services, an instant-messaging software company soon to be used by some of the world’s biggest banks, for details about its document retention capabilities and other features.

Credit Suisse’s New Chief Signals Strategy Shift After Earnings Beat – Reuters
Despite upbeat earnings, Credit Suisse’s fixed income, currencies and commodities (FICC) business was hit by investor concerns ranging from Greece’s sovereign debt crisis to the timing of a long-awaited US interest rate hike. A “new strategy should address some of the pressures apparent in our second-quarter results,” Credit Suisse’s chief executive Tidjane Thiam said.

European Investment Banks’ Second Quarter – What to Watch – Wall Street Journal (subscription)
Boards across Europe’s major investment banks have conducted a major spring clean over the past few months. Deutsche Bank, Credit Suisse and Barclays all have new leaders. Investors are now waiting for signs of change. As European banks begin to report their second-quarter earnings, here are some of the key things to look out for over the next few weeks.

 

Market Savvy  

Rights and Responsibilities of the Renminbi
Euromoney
China’s bid to join the currencies in the IMF’s SDR basket is more than a footnote of interest only to economists. Policymakers should take note.

Dollar Weakens Versus Major Peers as Kiwi Gains on Policy Signal
Bloomberg
The dollar fell against most of its major peers amid a lack of economic data to support the currency, while New Zealand’s kiwi surged. The Bloomberg Dollar Spot Index retreated from near a three-month high as traders awaited fresh reports to back speculation the Federal Reserve will raise interest rates this year.

Asia FX Sentiment Worsens on US Rate Hike Views; Yuan Exception
Reuters poll
Sentiment towards most emerging Asian currencies deteriorated in the last two weeks, a Reuters poll showed on Thursday, as expectations grew that the US Federal Reserve will raise interest rates as soon as September.

 

Press Releases

China Financial Futures Exchange Signs MoU with Moscow Exchange
China Financial Futures Exchange and Moscow Exchange have signed a Memorandum of Understanding, which aims to strengthen bilateral partnership and facilitate the development of both parties through information sharing, staff exchange and closer business cooperation in various areas.

Fortex Expands Operations to Shanghai
ECN Fortex has officially opened an office in Shanghai focused on helping clients and investors capitalise on the opportunities in the high-growth FX investment sector.

Murex Partners with DTCC’s Omgeo
Murex, a collateral and processing solutions provider, has entered into a strategic partnership with Omgeo, a wholly owned subsidiary of The Depository Trust & Clearing Corporation (DTCC), to enhance post-trade operations.

 

Industry Events