Month: January 2014

ICBC to Buy Standard Bank’s Markets Business

The Industrial and Commercial Bank of China (ICBC) has increased its effort to build a financial markets business with the acquisition of 60% of the existing issued shares in Standard Bank Plc. SB Plc is a bank wholly owned by Standard Bank via Standard Bank London Holdings Limited, and has full banking licenses and an […]

And Another Thing…

I have not had a tremendous amount of dealings with the body and readers will (as always!) feel free to correct me if I am wrong, but news that the Financial Stability Board is being tasked with investigating and recommending a framework for FX fixings is nothing but good news to me. Yes, it could […]

Fed to Continue Tapering Despite Mixed Market Conditions

The US Federal Reserve has announced that it will continue to reduce its economic stimulus programme in February. It plans to reduce its purchasing of agency mortgage-backed securities (MBS) from $40 billion to $35 billion per month and its longer-term Treasury securities from $35 billion to $30 billion per month. The news that the Fed […]

Industry Quick to React to BaFin Exchange Suggestion

Moving currency trading onto regulated exchanges, as proposed by the head of the German financial authority, has been criticised by market participants. In a telephone interview with Bloomberg, Elke Koenig, president of BaFin, reportedly argued that such a move would make it “far easier” to detect trading patterns that manipulate prices, and suggested moving such […]

Turnover Surveys Reveal Scale of Yen “Bounce”

The world’s FX committees have released the latest semi-annual turnover surveys, for October 2013, which show a sharp decline in activity from April 2013, thus confirming suspicions that the latter month was unduly influenced by a spike in yen trading (Squawkbox, July 29, 2013).  Overall activity across the six centres to report dropped 12.1% to […]

Fix Volumes in Decline as Manipulation Probe Intensifies

Trading volumes during the 4pm WM/Reuters Fix are dropping as global investigations into alleged FX manipulation, believed to be focusing on practices surrounding the use of the benchmark, continue to gather pace. Participants at a meeting of the ACI’s foreign-exchange committee (ACIFXC) this week were reported by the Wall Street Journal to be discussing the […]

And Finally…

There seems to be (finally!) general consensus that the Fix isn’t the best mechanism in its current form as my sources tell me Fix volumes are declining “sharply”. So, either it needs to be changed or new methods need to be found; the problem with the latter, however, raises another long standing issue of mine […]

Around the World

Sweden Prepares to Tax Bitcoin as an Asset The Swedish Tax Agency is reportedly drafting rules that would tax Bitcoins as assets. Last April the Swedish financial supervisory authority, Finaninspektionen, warned that Bitcoin could be exploited for money laundering purposes because of the anonymity of its users. However, rather than banning Bitcoin, Swedish authorities will […]

Tech Corner

BSDR, a subsidiary of Bloomberg, has received provisional registration from the Commodity Futures Trading Commission (CFTC) to become a swap data repository. Bloomberg is continuing to work with Commission staff to satisfy certain conditions and expects to be operational in the near future. BSDR is the fourth entity for which the CFTC has issued provisional registration […]

On the Move

McInerney Heading to BTMU? Patrick McInerney is joining Bank of Tokyo Mitsubishi’s spot desk in New York, according to market sources. He was previously a director in the fixed income, currencies and commodities (FICC) division at Bank of America Merrill Lynch. McInerney joined BAML in New York in 2011 from Standard Charterted where he was […]