|WMR Changes Spark Benchmark Execution Review – Profit & Loss (free story)
Changes to the WM/Reuters methodology for establishing its benchmark FX fixes introduced this week have had little discernable impact on trading activity, although market participants say it is forcing firms to review how they manage trades executed at the Fix.
Daily FX Volumes Hit $5.3 Trillion in January After SNB Removes Franc Cap –Reuters
The dramatic moves on the Swiss franc on 15 January drove the average daily value of the global market in foreign exchange back above $5.3 trillion last month, data showed on Wednesday, fuelling optimism among major trading platforms.
UK Watchdog Cracks Down on Asset Managers – Financial Times(subscription)
The UK’s £5 trillion asset management industry is not doing enough to guard against potential insider trading and market abuse, the UK’s financial watchdog has found in the latest salvo on an industry that is garnering increasing regulatory scrutiny.
ESMA Faces Industry Scrutiny at MiFID Hearing – FOW (subscription)
The European Securities and Markets Authority held a hearing in Paris to discuss the revised Markets in Financial Instruments Directive, which is set to go into effect in 2017. ESMA is expected to face scrutiny regarding transaction reporting, expansion of the European Markets Infrastructure Regulation and other rule changes.
Traders Burned on Swiss Franc Carry Shun Free Money – Bloomberg
When it comes to Swiss franc carry trades, it’s a case of once bitten, twice shy. Switzerland’s negative interest rates mean investors are effectively being paid to borrow francs, which they could then use to purchase higher-yielding assets denominated in other currencies.
Speculators Can’t Force Denmark to Exit Peg, Callesen Says – Bloomberg
The deputy governor of Denmark’s central bank, Per Callesen, said speculators won’t force the country to abandon its peg to the euro.
China Forex Regulator to Keep Yuan Exchange Rate Stable in 2015 – Reuters
China will keep the yuan’s exchange rate basically stable in 2015, the official Xinhua news agency said on Thursday, citing the foreign exchange regulator.