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Barclays ‘Cartel’ Trader Blames Bank Former Barclays head of spot voice FX trading Chris Ashton claims he was “scapegoated” by the firm in the wake of the investigations of the Financial Conduct Authority (FCA) into alleged manipulation of FX rates, and that he was first “put in the line of fire” and then sacked for repeatedly blowing the whistle, an East London employment tribunal heard Tuesday. Ashton appeared at the tribunal to provide testimony in his claim against Barclays for unfair dismissal and whistleblowing after he was fired from the bank in May 2015 following a lengthy suspension and an internal inquiry by a Barcla...
Getting Ahead of Client Demands As client requirements evolve in response to changes in FX market structure, services providers need to be ready to adapt to these new demands, said panelists at Profit & Loss Forex Network Toronto conference last month. Liquidity has been a big talking point this year in the FX industry, and the panelists highlighted how their clients’ liquidity demands are shaping their businesses, often in very different ways.  Matt O’Hara, CEO of 360T Americas, explained how an increasing number of his firm’s clients were commenting that liquidity could on certain occasions be thin, and stated that havin...
IMF Amends SDR Rounding Methodology The executive board of the International Monetary Fund (IMF) has amended its rounding methodology for determining currency amounts in the Special Drawing Right (SDR) basket. The decision, reached July 20, was in order to “make it less complex and also to more closely align the currency weights with those approved by the IMF executive board,” the IMF says in a statement. Under the new rounding methodology, currency amounts will now be rounded to five significant digits based on the sixth significant digit. “As in the past, the calculated currency amounts will ensure that, on the last busines...
State Street to Pay $530m to Settle FX Fraud Allegations It was announced today that State Street expects to pay a total of $530 million to resolve FX fraud allegations levelled against the bank. The US Department of Justice (DoJ) issued a statement today saying that State Street has agreed to pay a total of at least $382.4 million to settle allegations that it deceived some of its clients when providing them with indirect FX services between 1998 and 2009.  This figure includes $155 million that will go to the DoJ, $167.4 million in disgorgement and penalties that will go to the Securities Exchange Commission (SEC) and at least $60 million to Emp...
Four Barclays Veterans Depart FX Team Sources tell Profit & Loss that four veterans of Barclays’ FX division have been made redundant by the bank as part of wider cuts across the business. Vincent O'Sullivan, Marek Robertson, Marcello Cavalcanti and Martin Richards have all left the bank in London, sources say. Barclays declines to comment.  Robertson, who was managing director, head of e-FX sales and e-FICC sales, Europe, has been with the bank for more than 14 years. Robertson has headed e-FX sales since 2012, having taken on the FX responsibilities along with his existing role as head of e-FICC sales for Europe, a role he to...
Chinese RMB Not a Safe Haven Currency, Study Finds The Chinese offshore convertible renminbi cannot currently be considered a safe haven currency, and neither does it appear to be on the path of becoming one, a study published by the Federal Reserve Bank of Dallas suggests. The study analyses the trends of the RMB against a set of currencies typically considered “safe haven” ones: the USD, the JPY, the EUR, the GBP and the CHF between February 2011 and April 2016. The value was observed in light of both high frequency and low frequency movements, driven by the reaction of the market to “contemporaneous changes” and “institutional aspects and...
Multibank Platforms Look to Diversify Liquidity Options Multibank platform providers need to broaden the range of liquidity options that they offer clients in order to thrive in the diverse FX market ecosystem, said panelists at Profit & Loss' Forex Network New York conference. There has been much discussion in the industry about whether more FX trading will occur through central limit order book (CLOB) venues, or whether clients will ultimately prefer a bilateral, disclosed model. “Disclosed trading is a big part of our business and it’s growing right now because of customer demand,” noted Paul Ainsworth, global head of sales at FastMatch. Simi...
FX Committee Surveys Show Trading Was Up During April FX trading volumes were up in the UK, US, Japan, Canada, Singapore and Australia in April compared to October 2015, according to the FX Committees’ semi-annual results. In the UK, average daily reported foreign exchange turnover was $2,213 billion in April 2016, up 5% compared to October 2015, but some 9% lower than a year earlier. Most of the increase was attributable to a 27% increase in USD/JPY activity from October 2015, to $361 billion per day, according a report from the UK’s Foreign Exchange Joint Standing Committee (JSC). Most products saw a relatively small increase in turnover ov...
Moex Unveils Exec Board, Exchange Council New Appointments Moscow Exchange has announced a number of new appointments at its executive board and exchange council. Anna Kuznetsova, managing director of Moex’s equity and bond market and Igor Marich, managing director of Moex’s FX and money markets were made members of the executive board for two years, Moex says in a statement Friday. The appointment of “two key front-office directors who have a 15-year history with the Exchange, as well as unique expertise and a track record of managing major exchange products and new projects” brings the number of members of the Executive Board to six, Moex says. C...
CFTC Issues CCP Recovery, Wind-Down Guidance The US Commodity Futures Trading Commission’s (CFTC) Division of Clearing and Risk (DCR) has issued guidance to clearinghouses to further the development of recovery plans and wind-down Plans.  The CFTC says that for clearinghouses, or Derivatives Clearing Organisations (DCOs), the development of these plans is “a critical element of risk management and contingency planning to address the extreme circumstances that could threaten DCOs’ viability and financial strength, and is required by CFTC regulations”. The guidance highlights certain topics that the CFTC says that clearinghouses should a...