Rand-Rigging Investigator Alleges Widespread Collusion – Bloomberg
The head of the South African authority investigating banks for allegedly fixing the price of the rand said it will seek to prove “widespread” collusion and may probe more financial services companies with “stiff” fines expected.
Libor trial: Tom Hayes Claims Interest Rate Rigging Was ‘Industry-Wide Practice’ – The Guardian
A trader accused of trying to rig a key interest rate which is behind trillions of dollars in financial deals told investigators he was taking part in an “industry-wide” practice.
DTCC Warns Against Burdensome CCP “Skin in the Game” – Profit & Loss (free story)
The Depository Trust and Clearing Corporation (DTCC) has become the latest firm to issue a whitepaper regarding CCP risk, arguing that although it supports “meaningful” first-layer CCP contributions to their default waterfalls, if these contributions are overly burdensome it could increase the risk of member losses.
Parker FX Index Down 0.80% in April – Profit & Loss (free story)
The Parker FX Index, a performance-based benchmark that measures the returns of global currency managers, moved into negative territory in April as managers were wrong-footed by weaker than expected data in the US.
Traders’ Losses Mount as Divining Dollar’s Moves Proves Elusive – Bloomberg
Foreign exchange traders just can’t seem to figure out the dollar and it’s costing them lots of money. An index tracking returns of 14 top currency funds just posted its first back-to-back monthly decline in more than a year.
Project Colin: Why Goldman-Led Margin Hub Fell Apart – Risk Magazine (subscription)
The world’s big dealers quietly started work on a new swaps market utility last year, dubbed Project Colin. The aim was to control the vast collateral flows arising from incoming bilateral margining rules, but the consortium has since fallen apart, and a coalition of middleware and back-office firms have stepped into the breach.
Bernanke Says Yuan Approaching Fair Value After Lew Urges Gains – Bloomberg
Former Federal Reserve Chairman Ben S. Bernanke said the yuan is heading toward fair value, lending weight to China’s claim that its exchange rate is largely determined by market forces.
In Memoriam: Robert Entenman – Profit & Loss
Robert Entenman, global head e-commerce at UniCredit and a member of ACI – The Financial Markets Association’s Committee for Professionalism, died last week at the age of 57.