UK Markets Rally as Conservatives Head for Outright Election Win – Reuters
British financial markets rallied on Friday as election results pointed to a shock outright victory for Prime Minister David Cameron’s Conservative Party, wiping away the uncertainty for investors that a hung parliament had threatened to deliver.
Europe and US Fail to Agree on Derivatives Rules – Financial Times (subscription)
The two main regions for derivatives trading have failed in their latest push to harmonise industry rules, with US and European regulators aiming to settle a long-running spat by the summer. Talks in Brussels between Jonathan Hill, the European Commissioner for financial stability, and Timothy Massad, chairman of the US Commodity Futures Trading Commission, concluded on Thursday, with no agreement reached over the recognition of each region’s rules on clearing houses.
CME FX Fix Under Microscope in New Lawsuit – FX Week (subscription)
A CME Group benchmark referenced as the daily settlement price for FX futures and options on the exchange has been brought into question, following another class action lawsuit against 12 banks in the US for its alleged manipulation.
Firms Vie to Set Up New Ways to Trade Treasurys – Wall Street Journal (subscription)
A host of companies are vying to set up new electronic networks for trading US Treasurys, the latest upheaval in a $12.5 trillion market already being reshaped by some large banks’ pullback and the growth of fast-trading firms.
Hong Kong Monetary Authority Racks Up HK$85.9 billion in FX Losses Over 15 Months – South China Morning Post
The Hong Kong Monetary Authority needs to improve its foreign exchange trading strategies after racking up a grand total of HK$85.9 billion in forex losses over the past 15 months. Cutting exposure to the yen, euro and pound and using hedging tools are among the investment advice offered by currency traders.
Emerging Europe: CIS counts the cost of Russia – Euromoney (subscription)
The rouble’s crash sent currencies tumbling across the Caucasus and Central Asia. Banks look relatively well placed to withstand an inevitable downturn. But with protracted stagnation looming, is it time for policymakers to build bridges further afield?