Wave of Contagion Expected After Dramatic Weekend Raises ‘Grexit’ Chances – Reuters
Global financial markets are braced for a wave of contagion from Greece on Monday, with expected heavy losses for southern European government bonds and regional stock markets as investors scramble to discount a possible “Grexit” that most had still assumed was unlikely as late as Friday afternoon.
Swiss Step Into Currency Market as Greece Adds to SNB’s Woes – Bloomberg
Greece’s decision to effectively call a public vote on its euro-area membership is one more blow for Switzerland, the country where overwhelming demand for its currency is pushing it toward a recession.
Retail Brokers on Alert Over Grexit – Profit & Loss (free story)
Retail FX brokerage firms are warning their clients of “changed trading conditions” in euro crosses as the Greek crisis worsens.
EU Goes Bananas With Currency Rigging Case Against Big Banks –Bloomberg
The European Union is going bananas as it pursues a probe into currency-rigging. Literally. Antitrust regulators are seeking to bolster their case against some of the world’s biggest banks using a March ruling at the EU’s top court in a banana cartel involving Dole Food Co.
FX Traders’ Plans to Avoid Conviction When Facing the SFO – Profit & Loss(subscription)
I received an insight into the likely defence of those FX traders facing interview by the UK’s Serious Fraud Office at the end of last week – and I don’t think it’s going to be pretty.
Bank for International Settlements Warns of Emerging Market Risks – Financial Times (subscription)
Economists and foreign investors may have overestimated the potential economic output of a quintet of Latin American countries by 2 percentage points, leading to the possibility of sharp financial outflows when reality sinks in.
Renminbi Trade Volumes in London More than Double in 2014 – Profit & Loss(free story)
Chinese renminbi trade volumes in London more than doubled last year, according to a new report from the City of London Corporation, as competition to become the leading offshore RMB hub in Europe heats up.
Banks Need Greater FXPB Differentiation – FX Week (subscription)
Prime brokerage (PB) services in the foreign exchange space will become more focused on niche areas in the future, increasing the differences between banks’ prime offerings as dealers tighten up their approach to credit provision, says the global head of FXPB services at RBS.