US Banks Moved Billions of Dollars in Trades Beyond Washington’s Reach – Reuters
This spring, traders and analysts working deep in the global swaps markets began picking up peculiar readings: Hundreds of billions of dollars of trades by US banks had seemingly vanished. “We saw strange things in the data,” said Chris Barnes, a former swaps trader now with ClarusFT, a London-based data firm.
Tactical Approach of Dismissed FX Traders Has Banks Worried – Profit & Loss (subscription)
Are some of the cases involving dealers dismissed over chat room activity ever going to be heard? Clearly the tactical approach of some of those traders has got the banks worried.
British Banks Face Foreign Exchange Time-Bomb – The Telegraph
The firefighters of Oklahoma had a lot to celebrate this month. So did public sector employees in the City of Philadelphia, who found themselves cheering in unison with financiers at the Syena Global Emerging Markets Fund. They and their pension funds are among the joint claimants in a class action against a score of banks..
China Poised to Raise Banks’ Liquidity to Boost Lending – Wall Street Journal (subscription)
The People’s Bank of China is preparing to flood the banking system with liquidity to boost lending, according to officials and advisers to the central bank, as its recent currency moves are squeezing yuan funds out of the market and renewing concerns over capital leaving Chinese shores.
Finding Liquidity: Today’s Greatest Challenge – FIX Global Trading
If there is one overarching theme today in debates around trading it is certainly the progressive and consistent erosion of secondary markets liquidity over the last few years. I do not think we exaggerate if we say that finding liquidity has become today the biggest challenge on trading desks.
How the Market Rout is Turning Wall Street Upside Down – Wall Street Journal (subscription)
After stock investors suffered a sharp decline last week and investors flocked to the relative safety of US Treasurys, bonds are once again getting the upper hand, defying market sages who predicted tough times ahead in the vast debt market due to the prospect of rising interest rates.
Wall Street Ready to Fight Against High-Speed Trading ‘Spoofers’ – New York Post
Wall Street sheriffs could soon be hunting down fast-moving trading bandits overseas. Regulatory brass at American exchanges are ready to unleash a new high-tech campaign to isolate and wipe out international high-speed trading “spoofers” who manipulate the US markets from the relative safety of their non-US perches.
Libor Lawsuit Allowed to Proceed in US Courts – Profit & Loss
A US judge has ruled that Barclays’ shareholders may proceed with a case against the British bank, in which they accuse it of inflating its stock price by manipulating Libor.
Illiquidity Worries UK Insurers in FX Hedging Switch – Insurance Risk (subscription)
A lack of liquidity in the cross-currency swaps market worries UK annuity firms as they are forced to stop using FX forwards in their matching adjustment portfolios to hedge foreign currency bond holdings.