Top Headlines

Robot Trades Inflamed Then Soothed Markets After Franc Shock – Bloomberg

High-frequency traders may have at first exacerbated currency swings after the Swiss National Bank’s surprise decision to drop its euro cap, before helping to calm the market faster than would otherwise have been the case according to central bankers attending the Global Meeting of Foreign Exchange Committees in Tokyo.

JP Morgan Algorithm Knows You’re a Rogue Employee Before You Do – Bloomberg

JP Morgan, which has racked up more than $36 billion in legal bills since the financial crisis, is rolling out a programme to identify rogue employees before they go astray, according to Sally Dewar, head of regulatory affairs for Europe, who’s overseeing the effort.  But technology that predicts behaviour raises ethical questions.

Dollar Builds on Gains, Sterling Volatility Jumps – Reuters

The dollar touched a one-week high on Thursday after two influential Federal Reserve officials kept alive expectations for a rise in US interest rates before the end of this year.

Currency Wars: Is the US the New Victim? – Financial Times

The US dollar has appreciated on a trade-weighted basis at a faster pace for the past eight months than during any similar period since the end of the Bretton Woods system in 1971.

Currency Reform to Trigger More Capital Inflow to China –

Major reforms toward the Chinese currency’s full convertibility expected in the next five months will encourage more capital inflow into China this year, Deutsche Bank said in a report.

UK Treasury Urges BoE to Consider Time Stamps for Forex Trades – Financial Times

The Bank of England is being urged by the UK Treasury to consider requiring time stamps for all foreign exchange trades as part of reforms that proponents say would help prevent banks from defrauding clients, according to people familiar with the issue.

Piketty Says EU Politics Risks Driving Greece Out of Euro – Bloomberg

Thomas Piketty, the French economist whose 2013 book on wealth inequality became an international bestseller, said he sees a risk of politicians in the European Union forcing Greece out of the euro area.

An Algorithm to Make Online Currency as Trustworthy as Cash – Wired

David Mazières, professor of computer science at Stanford University, is building a new kind of algorithm to help create a worldwide network of machines to send any currency and have it arrive as any other.

Main Macro Risks for 2015 Include Slower Growth and FX Volatility in Emerging Markets – Balkans Business News

Gradually improving economic conditions across much of Europe should help strengthen cash flows and modestly reduce leverage among the region’s corporate issuers in 2015, Fitch Ratings says.

BRICS $100 Billion Currency Reserve Pool as Economic Foreign Policy Tool – Sputnik News

Russia’s Cabinet of Ministers approved the ratification of an agreement to create a pool of conditional currency reserves for BRICS member states, a move that experts believe will help create an institute to rival the International Monetary Fund (IMF).

Regulatory News

Gain Capital CEO Criticises “Passport” Regulation – Profit & Loss (subscription)

Glenn Stevens, Gain Capital CEO, has called for better regulation of retail FX trading for firms operating under the European Union’s Markets in Financial Directive (MiFID) passport rules.

ISDA CEO Calls for SEF Rule Reform – Profit & Loss (subscription)

International Swaps and Derivatives Association (ISDA) CEO, Scott O’Malia, says US regulators need to make amendments to the rules governing Swap Execution Facilities.

Iosco Consults on Business Continuity – Markets Media 

The International Organisation of Securities Commissions has published two consultation reports aimed at further enhancing the ability of financial markets and intermediaries to manage risks, withstand catastrophic events, and swiftly resume their services in the event of disruption.

Company News

Icap’s Relationship-Based Platform EBS Select Goes Live With Beta Version – LeapRate

EBS, the electronic FX division of Icap, has announced that EBS Select, its non-disclosed, segmented, bilateral liquidity pool, has gone live with a beta version, with the first trade completed on 24 March.

Market Savvy  

EM FX and the Case for Calm – FT Alphaville

It is apparently sorely needed, according to Nomura’s Jens Nordvig, who argues that EM FX pessimism is unwarranted.

FOMC Minutes: FX Implications – eFX News

The March FOMC Minutes offered little new information for FX, consistent with the muted post-release price action according to the Bank of America Merrill Lynch.

This EUR-USD Forecast Sees Parity and Beyond – Pound Sterling Live

The euro exchange rate complex has seen its grinding losses finally come to an end in April.

Press Releases

FXecosystem Experiences Record Growth

FXecosystem, a leading provider of outsourced connectivity services, has seen a surge in demand for its services, resulting in record growth over the last year.

Standard Chartered RMB Globalisation Index Shows Small Rise for February

The Standard Chartered Renminbi Globalisation Index rose to 2,133 in February, up 0.14% from the previous month. This is the slowest monthly gain in 28 months, partly due to the Lunar New Year effects.

Industry Events