Top Headlines

UBS in ‘Advanced Talks’ with US on Foreign Exchange Probe – BBC News
UBS says it is in “advanced talks” with the US Department of Justice to settle allegations that it attempted to rig foreign exchange markets.

HSBC Expected to Take New FX Charge Ahead of New Fines – The Telegraph
HSBC is expected to set aside hundreds of millions more dollars for foreign-exchange manipulation fines this week, as US authorities close in on a settlement with more than half a dozen banks.

Wall Street Regulator Says Futures Should Be Part of Audit Trail Plan – Reuters
Futures market trading data should be part of a new audit trail that is being developed to ensure that regulators can police markets across asset classes, a top Wall Street regulator says.

China Share in Global Indices Set to Rise – Financial Times (subscription)
Come June, the International Monetary Fund will probably decide to include the Chinese renminbi in its special drawing rights. Though the move is largely symbolic, the symbolism is huge. It is yet another acknowledgment of China’s growing stature in the global economy and in financial markets.

Sterling Volatility jumps in Run-Up to UK Election – Financial Times (subscription)
Fears over how an inconclusive result at the UK general election on Thursday could destabilise the pound have reached their highest level since Britons last went to the polls in 2010.



Regulatory News

Commissioner Bowen Speech before the Managed Funds Association, 2015 Compliance Conference
I’ve spoken about a few topics that are at the top of my agenda and which I hope the Commission will address early during my term. One of those is the need for increased regulation of retail foreign exchange transactions, which I believe is necessary to protect the retail investors who trade in that market. Another is the need for full funding of the Commodity Futures Trading Commission so that we will have strong, comprehensive oversight of the swaps and futures markets. Still another is the need to finalise the remaining regulations required by the Dodd-Frank Act.

Dissenting Statement in the Matter of Deutsche Bank, Regarding WKSI – Commissioner Kara M. Stein
I respectfully dissent from the Commission’s Order approved on May 1, 2015, by a majority of the Commission. The Order grants Deutsche Bank a waiver from ineligible issuer status triggered by a criminal conviction of its subsidiary, DB Group Services (UK), for manipulating the London Interbank Offered Rate. This waiver will allow Deutsche Bank to maintain its well-known seasoned issuer status, which would have been automatically revoked as a result of its criminal misconduct absent a Commission waiver.

CFTC’s Wetjen Says Proprietary Traders Should Be Encouraged to Trade on SEFs – FS Core
The US Commodity Futures Trading Commission should make it easier for proprietary traders to transact on swap execution facilities to increase volume on the electronic platforms, Commissioner Mark Wetjen said.



Company News

CME Group Sees FX Volumes Jump 50% Y/Y in April – Leap Rate
Average daily FX volumes amounted to 838,000 contracts in April 2015, staging a rise of 50% when compared to the result recorded in April 2014.. At the same time, the result was 23% lower than the 1,087,000 mark the marketplace hit in March 2015.

Barclays Bank Faces Multi-Million Pound Legal Challenge Over Libor Rigging – The Independent
Barclays Banking Group’s role in the Libor-rigging scandal looks set to fall under the microscope once again after a self-storage company launched a multi-million pound legal claim against the bank.

Macquarie Revives Talks with Jefferies on Precious Metals Business – Reuters
Australia’s Macquarie Group is looking to recruit the precious metals trading team of Jefferies Group’s commodities brokerage, two sources familiar with the matter say.



Market Savvy  

The Bloom is Off the Chinese Rose
Seeking Alpha
As reported in Monday’s WSJ, the IMF will soon declare that China’s currency is “fairly valued.” It’s about time that the world stopped beating up on China for not allowing its currency to appreciate even more than it already has (hint: 100%). However late it may be to the let’s-stop-beating-up-on-China party, this move by the IMF is effectively an official recognition of one of the biggest changes in global financial and economic fundamentals in recent years: the end of China’s great economic boom. China was never guilty of keeping its currency from appreciating enough; it was simply “guilty” of being the most attractive destination for foreign investment.

The World at a Glance – May: The Grey
Bank of America Merrill Lynch
Muddled “grey” scenarios typify likely outcomes from current elevated Greek worries, but similar muddled outlooks are also typical in the global macro picture, including the timing of Fed hikes and further central bank easing around the world.

Nordic Outlook – May 2015
The global economy continues to be driven by changes in central bank policies. European Central Bank stimulus policies have had an unexpectedly rapid impact on optimism and inflation expectations, stabilising the outlook for all of Europe. In the United States, however, disappointments predominated early in 2015. In emerging markets, the signals have been mixed, although signs of weakness have dominated, especially since the growth slowdown in China has been somewhat sharper than expected. Overall, we have adjusted our 2015 global GDP forecast downward from 3.7 to 3.4%, mainly because we have lowered our US growth forecast from 3.5 to 2.7%.



Press Releases

Saxo Bank Unveils SaxoTraderGO
Saxo Bank has launched SaxoTraderGO, a multi-asset trading platform, available on desktop and mobile devices. The platform was built from the ground up with a focus on usability and performance and integrates seamlessly between desktop and mobile devices.

Exegy Announces Support for Additional Foreign Exchange Venues
Exegy, a provider of high-performance market data normalisation and distribution solutions, has today announced the availability of six new feed handlers for foreign exchange venues. The new additions expand Exegy’s portfolio of over 200 market data feed handlers, including feed handlers for bank portals and ECN platforms for currency trading.



Industry Events