“Short, Sharp Shock” Needed for FX Market

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Top Headlines

“Short, Sharp Shock” Needed for FX Market – Profit & Loss
The recent multi-billion dollar fines given to a range of banks and the continued flow of negative headlines relating to the financial markets are still not enough to prevent criminal behaviour from happening in the future, according to Andrew Bullion, partner at law firm Hausfeld.

Does the FX Industry Need the Equivalent of a Truth and Reconciliation Commission? – Profit & Loss (subscription)
Does the FX industry need the equivalent of a Truth and Reconciliation Commission? This question was asked when the subject of discussion around Profit & Loss Scandinavia was, sadly it must be said, still dominated by the ongoing legal actions around dismissals and chat room activity. The idea is that at some stage in the near future a line needs to be drawn (probably 2013), beyond which no further legal action can be taken, much along the lines of the Commission in South Africa post-Apartheid.

The New Bond Market: Algorithms Trump Humans – Wall Street Journal
Computerised trading strategies are remaking the $12.7 trillion treasury market, emulating earlier sea changes in stock and currency trading.

Swaps Market Structure Changes Create Fragility – International Financing Review
New regulations pushing execution in the $630 trillion over-the-counter derivatives market onto electronic platforms may be contributing to a more fragile trading environment and exacerbating shocks, market participants have warned.

London Passes New York as Top Financial Centre on Election Boost – Bloomberg
London moved ahead of New York as the world’s top financial centre, boosted by Prime Minister David Cameron’s decisive election win, according to an index published by Z/Yen Group.

 

Regulatory News

Esma to Release Mifid RTS Next Week – FOW (subscription)
The European Securities and Markets Authority (Esma) is on course to release its Markets in Financial Instruments Directive (Mifid) II regulatory technical standards (RTS) draft rules next week. A spokesperson said on Wednesday that the RTS would not be released, as rumoured, on Thursday, but would be published early next week. However, according to sources, while the publication of the RTS will meet Esma’s September target, the draft will not be complete.

CME, ICE Hit Out at Open Access Rules – FOW (subscription)
Global exchange giants CME Group and the Intercontinental Exchange have hit out at the EU’s open access provisions saying they damage intellectual property rights and product innovation.

Steven Maijoor ISDA Keynote Speech: Clearing the Way Towards an OTC Derivatives Union
EMIR rule-making work is almost complete and the focus is now on ensuring a consistent implementation.

ASIC Licensing Report Update: We Rejected All Three Retail FX Broker Applications in 2015 – LeapRate
Australia’s financial regulator granted 48% of all applications assessed during the January-June 2015 period, but none in the FX sector.

 

Company News

Former Trader Sues Lloyds for Unfair Dismissal After Libor Probe – Reuters
A former trader at Lloyds Banking Group who was among eight people dismissed after the bank’s settlement for alleged manipulation of Libor interest rates is suing the bank for unfair dismissal, a court document showed. The hearing for John Argent will start on 5 October, according to a schedule for a London employment tribunal released on Wednesday.

RBC Loses Apac Head of Fixed Income and Currencies – GlobalCapital (subscription)
Frédéric Lainé has left RBC Capital Markets after four years with the bank. The fixed income veteran is understood to be leaving the banking industry.

 

Market Savvy  

Gross Tells Fed to `Get Off Zero Now!’ as Economies Run on Empty – Bloomberg
Bill Gross said the Federal Reserve needs to raise interest rates as soon as possible, trading some near-term market losses for longer-term stability and a healthier financial system.

Oil Price Plunge Forces Norway to Cut Rates to Record Low – Financial Times (subscription)
Norway’s central bank cut interest rates to a fresh record low as it battles to overcome a slump in oil prices that has hit the economy of Western Europe’s biggest petroleum producer harder than during the financial crisis.

Emerging Stocks, Currencies Lose More Ground on China, Brazil Worries – Reuters
Emerging stocks fell for a fourth straight day on Thursday and currencies also broadly weakened on growing fears over Chinese economic growth and the possibility of a crisis in Brazil.

 

Press Releases

Integral Introduces Major Upgrades to the Open Currency Exchange Making an End-to-End FX Platform a Reality
Integral Development Corp., a provider of end-to-end electronic trading platforms, announced major enhancements to its Open Currency Exchange (OCX), which brings together a wide variety of FX market participants into a single integrated network of liquidity.

Gain Capital’s GTX Updates Rules of Engagement for Liquidity Providers
Gain Capital Holdings, a global provider of online trading services, says it is updating the rules of engagement for liquidity providers on GTX, its institutional FX electronic communication network.

FastMatch Updates Operating Procedures
The updated Operating Procedures which will be effective on 1 November, 2015, will include a new section entitled Data Dissemination Practices.

 

Industry Events