SEC a Stumbling Block in Banks’ FX Guilty Pleas: Sources – Reuters
Banks want assurances from US regulators that they will not be barred from certain businesses before agreeing to plead guilty to criminal charges over the manipulation of foreign exchange rates, causing a delay in multi-billion dollar settlements, people familiar with the matter said.
JP Morgan Says Guilty Plea Key to DoJ FX Settlement – Financial Times (subscription)
JP Morgan Chase said on Thursday that any resolution over a probe into its foreign exchange sales and trading activities with the Department of Justice would include the firm pleading guilty to an antitrust charge, according to a filing with US securities regulators.
Citigroup Closes Foreign Exchange Program for Select Clients – Bloomberg
Citigroup, the world’s largest currency dealer, closed a program that provided leverage to some foreign exchange clients without putting them through an extensive credit check.
Barclays Said to Face US Fine for Breaching Libor Settlement – Bloomberg
Barclays will probably be fined for violating a three-year-old settlement over interest rate rigging, but US prosecutors will stop short of seeking a guilty plea, which they are demanding from UBS.
US ‘Superior’ to Europe on Futures Margin – Financial Times (subscription)
The head of the main US derivatives regulator on Thursday launched a passionate defence of its rules, describing European concerns about some of the agency’s standards as “dead wrong”. Timothy Massad, chairman of the Commodity Futures Trading Commission, told US lawmakers that the agency had proved that US rules to protect clearing of derivatives were “superior” to Europe’s as the two sides struggle to end a two-year spat over recognition of each other’s rules.
CFTC Opens Review of US Swap Dealer Rule – FOW (subscription)
The Commodity Futures Trading Commission has started a review of its own plan to reduce in 2017 the threshold at which firms must register with the CFTC as a swap dealer. CFTC chairman Timothy Massad told the Energy Risk Summit USA his agency has started work to review the plan to reduce in December 2017 the threshold for registration to $3 billion from the current level of $8 billion.
Currency-Hedged ETF Surge Prompts Hedging Concerns – Structured Products (subscription)
ETF providers are expanding their roster of currency-hedged products as investors hunt for cheaper ways to exploit the decoupling of equity and currency performance in developed countries. The interest is spurring a new wave of innovation – and prompting a debate on how effective different hedging mechanisms may prove to be in practice.
Ex-CIMB Treasury CEO Calls for Direct Asean Forex Crosses – Asia Risk (subscription)
Companies conducting trade in the Association of Southeast Asian Nations (Asean) region should avoid using US dollars as a conduit before settling into a final currency in order to avoid extra costs and improve risk management, according to the former CEO of CIMB Bank’s treasury.
Dollar Tumble Does More Than Rattle Markets – CNBC
Up until a few weeks ago a firm dollar was a gift to central bankers outside the US, with weaker domestic currencies providing a powerful economic boost and aiding monetary policy easing. But with the dollar now in reverse amid mixed US economic data, analysts say central banks in Europe and Japan may have to maintain monetary stimulus for longer than anticipated.
China’s Yuan May Draw $1 Trillion on Getting IMF Reserve Status – Bloomberg
At least $1 trillion of global reserves will switch into Chinese assets if the International Monetary Fund endorses the yuan as a reserve currency this year, according to Standard Chartered and AXA Investment Managers.
Euro Slips from Three-Month High as Rise in Bund Yields Stalls – Reuters
The euro fell below $1.14 on Friday as a recent spike in German Bund yields stalled, but the single currency was still on track for its fifth straight week of gains.
Futures for Kids ‘Walk to Work’ Taking Place Today
The London Walk to Work is taking place today with participants from the futures and foreign exchange markets raising money for Futures for Kids. The course, covering 25 to 30 miles in total across major London parks, is a new twist on the already established Walk to Work, which by itself has raised £180,000 since inception. It also forms part of the inaugural Futures for Kids Day alongside a number of other fundraising events being held in aid of children’s charities at home and abroad.