Month: December 2014

CLS to Extend Services in South Korea

CLS Bank has announced its intention to work with its settlement members to expand its third-party settlement services in Korea. This follows the recent announcement by the Bank of Korea that it is expanding the range of FX transactions eligible for CLS payment-versus-payment (PvP) settlement to include those of non-bank financial institutions.   “Today's announcement […]

Federal Court Approves $100 Million MF Global Fine

A US Federal Court has approved the settlement agreed between the Commodity Futures Trading Commission (CFTC) and MF Global Holdings (MFGH) that will see the former FCM pay a $100 million fine and pay $1.2 billion in restitution to former clients. A substantial portion of this restitution obligation has already been paid by MF Global […]

Indian Regulator to Relax Derivatives Rules

The Securities and Exchange Board of India (SEBI), in consultation with the Reserve Bank of India (RBI), is reportedly set to relax norms in the currency derivative market. News outlets have reported that the regulators are working together to relax the open position limit and extend the time for the market, citing a “well-placed” source […]

SGX Overhauls Derivatives Trading and Clearing Platform

The Singapore Exchange (SGX) is planning to upgrade its derivatives trading and clearing platforms to support further volume growth its derivatives business, as well as strengthen the nation state’s market infrastructure. SGX Titan will go live at the end of 2016. The upgraded platforms are designed to increase efficiency and lower trading and clearing costs […]

DGCX Launches Three More EM Currency Futures

The Dubai Gold and Commodities Exchange (DGCX) has launched three new currency contracts: Russian ruble futures, Korean won futures and South African rand futures. The new contracts went live on 26 December. These new contracts will provide DGCX market participants with additional tools to manage their price risk and exposure to foreign currencies, as well […]

China Eases Market Access for Foreign Banks

China’s State Council has announced new rules that will ease market access for foreign banks, in a move to further open up the domestic banking sector. The amended rules will no longer require a specific amount of operating funds to be transferred from the parent foreign bank to its newly established Chinese branch. Previously, a […]

China and Russia Use Currency Swap to Sideline Dollar

China and Russia are now able to use domestic currencies in trading, as the countries attempt to reduce the importance of the US dollar in international trade, as well as decrease FX risks. The RMB 150 billion bilateral currency swap agreement, which was first signed in October and allows the central banks to directly buy […]

ESMA Publishes Interim MiFID II Cost-Benefit Analysis

The European Securities and Markets Authority (ESMA) has published a high-level cost-benefit analysis (CBA) for the Markets in Financial Instruments Directive II (MiFID II) and Markets in Financial Instruments Regulation (MiFIR) implementing measures. The document should be read together with the consultation paper and draft technical standards published on 19 December by ESMA, the agency […]

Outlook 2015: A Welcome Return for Volatility?

As usual, in the run-up to the New Year institutional economists and analysts have been working furiously to produce outlooks for the year ahead, trying to predict how various global events will affect different currencies. One broad consensus is that the US dollar, which performed strongly in 2014, will continue to do so in 2015. […]

CFTC Committee Makes Recommendations for FX NDF Clearing

The US Commodity Futures Trading Commission’s (CFTC) sub-committee on foreign exchange markets has submitted a report to the global markets advisory committee (GMAC) with a number of recommendations regarding a clearing mandate for non-deliverable forwards (NDFs). The sub-committee advises that, should the CFTC decide to go ahead with a clearing mandate for NDFs, such mandate […]