SFO to Interview FX Traders Under Caution – Financal Times (subscription)
UK investigators are preparing to interview suspects under caution as part of their criminal inquiries into whether the foreign exchange market was rigged. Former traders, including Citigroup’s ex-European head of spot trading Rohan Ramchandani, who was a member of a chatroom known as the Cartel, will be questioned by the Serious Fraud Office within the next 12 weeks.
Retail FX “Should Occur on Regulated Exchanges”: CFTC’s Bowen – Profit & Loss (free story)
Sharon Bowen, commissioner of the US Commodity Futures Trading Commission, has restated her belief that the retail FX market should be subject to higher regulation, and has suggested that it be moved from over-the-counter markets to exchange traded facilities.
Early Settlement in Rand-Rigging Probe Seen by Ex-Regulator – Bloomberg
South African antitrust authorities will probably reach a settlement with some of the world’s biggest banks accused of rigging trading in the rand, according to David Lewis, former head of the Competition Tribunal.
Winners and Losers Emerge from Fragmented FX Swap Rules – Euromoney
Inertia around the mandating of FX activity on swap execution facilities by the Commodity Futures Trading Commission continues to favour Europe as a trading location.
Wall Street Could Save Billions on Swaps as Regulators Squabble – Bloomberg
A quarrel among regulators could add up to billions in savings for Wall Street banks. At stake is a proposed rule that has dragged on for years that could require firms like JP Morgan and Morgan Stanley to set aside tens of billions of dollars in collateral when trading swaps with their own affiliates. Now, a last-ditch effort by bank lobbyists has helped spur some regulators to second-guess how strict they should be.
Winds of Change Blow Through FX Risk Management – Euromoney
Market volatility has impacted FX risk management processes, although differing approaches to technology investment means the effect on market participants has been uneven.
Global Data Harmonisation of Derivatives Reporting Gains Ground – FTSE Global Markets
The call for regulators to look at data accuracy and integrity comes at a welcome time. It coincides with one of the founding principles of BCBS-239, which asks banks to measure and monitor accuracy of data. But while looking for accurate data is all well and good, alone it isn’t sufficient. The quality of data must be actively managed.