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Latest FX News

August 28th 2015 in News, People

Neal Leaves Deutsche Bank

Michelle Neal is leaving Deutsche Bank where she oversees listed derivatives and clearing as well as fixed income and currencies (FIC) market structure, two people familiar with the situation tell Profit & Loss.She is understood to be relocating to another financial firm in the US and an announcement by her new employer is expected shortly. The sources say she is leaving the bank on good terms.Neal joined Deutsche Bank in London in January 2014 from Nomura where she was head of global markets electronic trading, futures and prime services and chief operating officer of global execution service...

August 28th 2015 in News, Regulation

CFTC Approves New Rules for Retail FX Dealers

The US Commodity Futures Trading Commission (CFTC) has approved a number of rule amendments filed by the National Futures Association (NFA) regarding retail FX trading.The rule amendments will impose additional capital requirements on Forex Dealing Members (FDMs) and require them to collect security deposits for off-exchange FX transactions from eligible contract participant counterparties in addition to retail counterparties.Additionally, FDMs will have to adopt new risk management programmes and provide additional market disclosures and firm-specific information on their websites to...

August 28th 2015 in News, Around the World

FIA, FIA Europe, and FIA Asia to Merge

The boards of FIA, FIA Europe, and FIA Asia, who each represent the interests of regional futures industry participants, have agreed to merge in the first quarter of 2016.The three associations have been affiliated with each other since 2013 through the structure of FIA Global.  This allowed them to remain independent but still resulted in what the associations term “more efficient collaboration and coordination”. The three groups have now decided to legally join as one organisation.“We’ve made great strides in strengthening our collaboration in many areas and the time is right to take...
A new survey says that 44% of buy-side managers use completely manual or mostly manual processes to manage complex swaps.  In addition, the survey, carried out by SimCorp, says more than 50% still rely on manual intervention in a semi-automated process.The firm surveyed 57 individuals from 32 different North American buy-side firms, and also found that more than half of managers cannot obtain a consolidated view of their derivatives exposure alongside all other asset classes.“The persistence of widespread operational inefficiency in this area of the swaps market is a red flag pointing t...

August 27th 2015 in News, Technology

Standard Chartered Goes Live on FXSpotStream

Standard Chartered Bank has gone live as a liquidity providing bank to FXSpotStream’s aggregation service, making it the 11th bank available for trading to clients connected to FXSpotStream’s API and GUI service.The addition of Standard Chartered adds to the liquidity available from FXSpotStream’s existing liquidity providers, which include BofA Merrill Lynch, BNP Paribas, Citi, Commerzbank, Credit Suisse, Goldman Sachs, HSBC, JP Morgan, Morgan Stanley and UBS.“With Standard Chartered now live we have seen an almost doubling of our liquidity providers since we launched in 2011 and we are plann...

August 27th 2015 in News, Events

Secure Your Place at Profit & Loss Scandinavia

Profit & Loss Scandinavia 2015 takes place next month and already more than 200 FX professionals have registered to attend the region’s premier FX conference and trade exhibition.The full-day event taking place on 16 September will feature a keynote address from Per Callesen, Governor of Danmarks Nationalbank, interviews with Patrick Fleur, head of the trading and execution desk at PGGM, and Andrew Bullion, partner at law firm Hausfeld, as well as a series of panel discussions covering the most crucial topics pertinent to the region. Held in association with ACI Denmark, Profit & Loss Scandina...

August 27th 2015 in News, Around the World

Former Trader Sues HSBC

HSBC is the latest bank to face a suit for wrongful dismissal by one of its former FX traders let go over the chat room scandal. According to Bloomberg, former head of European FX trading Serge Sarramegna is suing HSBC for wrongful dismissal claiming he was punished for whistle blowing. Sarramegna was suspended by HSBC along with Edward Pinto, a Scandinavian currencies trader, in January 2014 and officially dismissed in October 2014.A growing number of traders suspended or dismissed by banks are taking their former employers to tribunals or the law courts. Citi is currently facing an ac...

August 27th 2015 in News, Exchanges & Clearing

CME Fines Wolverine Trading $250,000

Wolverine Trading has been fined $250,000 by CME Group for self-matching trades with itself in natural gas, agriculture and FX markets.In one disciplinary action brought by the exchange, Wolverine agreed to pay $125,00 for a breakdown of its automated trading system (ATS) on March 21, 2014, that resulted in the firm sending over 27,000 resend requests to the exchange.CME apparently tried to contact Wolverine at the time to resolve the situation but was unsuccessful and ultimately the exchange was forced to close all of the firm’s access ports in order to stop the resend requests.Wolver...
Corporate firms are expected to increase both their level of international trade and their FX hedging activity in 2015, according to a new study from payment and risk management firm, AFEX.In its Currency Risk Outlook Survey, 48% of AFEX clients say that they expect to increase the amount of international trade that they conduct in 2015, 89% say they plan to hedge their FX exposure at least as much as in 2014 and 19% expect to hedge more over that time frame.The survey shows the hedging strategies these firms plan to employ include passing the risk on to suppliers/customers (30%), for...
The recent dramatic rise in volatility and sharp falls in the Chinese equity markets may not just be disturbing domestic and international stock investors, as central banks try and reconcile their anticipated fiscal policy tightening with the wild scenes in the financial arena.Analysts at Barclays believe that the Federal Reserve, until recently seen raising rates at its September 16-17 meeting, will now sit back and wait to see the impact of the recent moves on upcoming macroeconomic data before making any decisions.“Although we continue to see economic activity in the US as solid and justify...