Month: December 2013

10 EM Surprises for 2014

The team at Citi’s news and analytical service, FX Wire, asked the bank’s EM strategy team to come up with 10 surprises for 2014, following in the footsteps of Blackrock’s Byron Wien, but focusing more narrowly on emerging markets rather than global macro. They are using the same definition of a “surprise” as an event […]

CFTC Grants LCH.Clearnet DCO Registration

The Commodity Futures Trading Commission (CFTC) has issued an order granting Banque Centrale de Compensation, doing business as LCH.Clearnet, registration as a derivatives clearing organisation pursuant to Section 5b of the Commodity Exchange Act. LCH.C SA is a subsidiary of LCH.Clearnet group, and is organised under the laws of France and is regulated in France […]

WSJ Dollar Index Ups Currencies on Back of BIS Survey

The make-up of the Wall Street Journal Dollar Index has been changed following the recently released Bank for International Settlements (BIS) Triennial Survey of FX Turnover, resulting in US dollar’s performance now being measured against 16 currencies instead of seven. Launched last year, the index was developed to offer a more accurate measure of the […]

JP Morgan Latest Bank to Crack Down on Instant Messaging

JP Morgan is expected to announce a ban on its traders from using multi-dealer electronic chat rooms, becoming the latest major bank to respond to growing alarm about instant messaging. It follows recent claims about the use of online forums as a potential medium for FX traders to manipulate the FX markets, amid ongoing investigations […]

FCA Makes “Surprise” Changes to Reporting Requirements

According to consultancy firm Rule Financial the Financial Conduct Authority (FCA) has said that it expects firms to immediately report trades opened since 16 August 2013 (the Emir start date) that are still open when the trade reporting requirement comes into force on February 12, 2014. Posting on the company’s blog Elspeth Goodchild, a specialist […]

Treasury Report Highlights HFT Risk to the FX Markets

The US Treasury’s Office of Financial Research (OFR) has released its 2013 report in which it states that the high volume of high frequency trading in FX could pose a risk to the market. The OFR report argues: “Threats to financial stability have generally abated since the publication of OFD’s 2012 annual report and the […]

Market Participants Warn of Fragmented Markets in ISDA Survey

The International Swaps and Derivatives Association (Isda) has released the results of a survey showing that the rules around Swap Execution Facilities (Sef) have caused liquidity to become fragmented across platform and cross-border lines resulting in separate liquidity pools and prices for similar transactions. Isda conducted the survey following concern from market participants over the […]

CFTC May Look to Further Extend its Extraterritorial Reach

The Commodities Futures Trading Commission (CFTC) is planning to try and force more overseas financial firms to comply with US rules, according to media reports. The Wall Street Journal, citing “an official familiar with the process” claims that the CFTC is preparing to state that the rules developed by the European Union and five other […]

Citi Appoints in FX Local Markets

Profit & Loss understands that Citi has appointed a new head for its FX local market sales business. Sources say that Misbah Shah has been named as head of FX local market institutional sales effective January 1. His brief includes responsibility for global FX investor and bank sales, global emerging market sales, global institutional e-FX […]

It’s Taper Time

The US Federal Reserve Bank has said that it plans to lower it’s monthly bond buying program to $75 billion per month, a $10 billion reduction and a strong signal that it is beginning to retreat from its quantitative easing stimulus campaign. “Beginning in January, the Committee will add to its holdings of agency mortgage-backed […]