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Scandi Outlook Mixed for 2H The economic outlook for Scandinavian economies looks mixed in the second part of 2016, with upcoming monetary policy decisions and a potential rebound in oil prices among the factors that may boost economic performance, market commentators tell Profit & Loss. Sweden has so far been the best performer in the region, having seen steady economic growth in the years following the economic crisis, although some slowdown has been seen recently. “Sweden is performing best, driven by strong credit growth and very easy central bank policy,” says John Hardy, head of FX strategy at Saxo Bank. “With hi...
CME to Add Contract Months for MXN/USD Options CME Group plans to list additional contract months for the options on its MXN/USD futures contract on Globex. Effective September 11 2016, for trade date September 12 2016, CME will list nine additional contract months for these options. The exchange group already lists three contract months for this contract on Globex and 12 contract months on the CME trading floor and for submission for clearing through CME ClearPort  The Merc says that listing the additional contract months on CME Globex will align the listing schedule for the contract on all trading and clearing venues. The Commodity F...
Varjacques Set to Depart EBS BrokerTec Gerard Varjacques is set to leave his position as global head of sales at EBS, according to market sources.  Although a spokesperson for EBS BrokerTec declined to comment on the news, Profit & Loss understands that Varjacques has decided to leave the firm and is working with Jim Iorio, the recently appointed global head of sales at EBS BrokerTec, to ensure a smooth transition as he departs. Varjacques joined EBS, ahead of its merger with BrokerTec, in 2013. Prior to that he was the COO at Traiana for over two years and also served as executive vice president of SunGard Institutional Asset Ma...
What is(n't) Going on in the Rand? Dealers are talking about an interesting, and for the foreign exchange market, unusual, reaction to the latest political upheaval in South Africa. News that finance minister Pravin Gordhan had been summoned to be interviewed by police saw a sharp move higher in USD/ZAR yesterday that had the pair peaking out after an 85 big figure move at 14.30, before drifting lower as Gordhan announced he would not submit to the police and had no legal requirement to do so. Gordhan's summons is seen as the latest blow in a long battle on the part of South Africa's prime minister Jacob Zuma to oust the ex...
RMB Moves Back Up to Fifth in Swift Rankings Data from Swift shows that in July RMB bounced back to its position as the fifth most active currency for global by payments by value, with a share of 1.90%, a slight increase from 1.72% in June 2016. Overall, the data shows that RMB payments value decreased by 0.68% compared to June 2016, whilst in general all payments currencies decreased by 10.08%. The other big change in the Swift data was that RMB usage in payments in South Africa increased by 65% over the last 12 months and by 112% in the last two years, moving the country from position #30 in July 2014, to #24 in July 2016. Excludi...
US Court Dismisses Fraud Claims Against FXCM A US court has granted a motion to dismiss the legal complaints aimed at FXCM, and certain members of its senior staff, in which the plaintiff alleged that they were mislead about the risks associated with the firms’ agency business model. The complaint, directed at FXCM, its CEO, Drew Niv and its CFO, Robert Lande, claims that these defendants “made a number of materially false or misleading statements or material omissions” about how FXCM operated its business.  “In particular, plaintiff alleges that defendants misled investors about the “low risks” of their “agency” business model, especi...
Saxo Bank Targets MENA Expansion With Two Senior Hires Saxo Bank has hired Mario Camara as head of Saxo Dubai and Anwaar Ahmed as head of institutional business development for MENA, as it looks to build out its presence in the region. In a statement issued today Saxo Bank says that these two hires reflect the importance of the Middle East as a growth hub for both its retail and institutional business lines, noting that it has tripled its revenues in this region since it started operating there in 2009. Prior to joining Saxo Bank Camara had been working with a range of international brokers and banks in the Middle East and Asia since 2007. Befor...
ACI President Steps Down In what is being seen as a surprise move, the president of ACI – The Financial Markets Association, Marshall Bailey, has resigned from the role – he was the first paid president in the association’s more than 60-year history. In a letter to ACI members, seen by Profit & Loss, Bailey says, “Serving the international membership of ACI FMA has been an honour and a duty that I have taken very seriously indeed.” ACI sources tell Profit & Loss that ACI South Africa’s Brigid Taylor has been appointed interim president and will remain in the post while the process for replacing Bailey is agreed and...
MAS Postpones Non-Cleared Margin Rule The Monetary Authority of Singapore (MAS) has postponed the implementation of rules surrounding margin requirements for non-centrally cleared derivatives. The rules were due to be invoked on September 1, however in a letter to market participants, MAS says it has been in close consultations with the industry in Singapore and regional regulators on a coordinated implementation of the margin requirements. As a result of this consultation and in association with the Hong Kong Monetary Authority (HKMA), MAS has re-considered the timeline “given recently announced changes in the implementation s...
CME Bans Spoofer CME Group has issued a 60-day ban against a trader it accuses of spoofing in its gold and natural gas futures markets – the ban comes just weeks after a US court sentenced Michael Coscia to three years in jail for the same offence. The exchange has denied Andrey Sakharov direct and indirect access to all CME Group markets by any member or member firm and any non-member firm introducing business to a member firm. The summary access denial prohibits Sakharov and/or any accounts in which he has ownership or control over from trading, placing orders, and controlling or directing the trading for...