Month: March 2015

ECB and BoE Reach CCP Liquidity Agreement After UK Court Victory

The European Central Bank (ECB) and the Bank of England (BoE) have agreed a joint arrangement to end the UK’s legal action against the ECB regarding euro-denominated business handled by UK-based CCPs. It follows the judgement on 4 March by the General Court of the EU which ruled against the ECB after the UK argued […]

EU Benchmark Law Moves Forward With Econ Backing

The European Union’s economic and monetary affairs committee (Econ) has backed a draft EU law which aims to “clean-up” the benchmark-setting process, including FX rates, by curbing conflicts of interest. Led by MEP Cora van Nieuwenhuizen, the text will now go to a European Parliament vote in order to consolidate its position before beginning three-way […]

Global FX Committees Release New Market Guidelines

Eight foreign exchange committees (FXCs) have published updated guidelines for best practice and market conduct for the global FX industry. As reported last week by Profit & Loss, the “Global Preamble: Codes of Best Market Practice and Shared Global Principles” document covers topics such as personal conduct, confidentiality and market conduct, and policies for execution […]

Lack of Clearing Members Could Increase Counterparty Risk, Says NY Fed

The Federal Reserve Bank of New York (FRBNY) has released a paper warning that too few participants in a central clearing system could increase counterparty risk. In the staff report, Rodney Garratt and Peter Zimmerman claim that, “When a small number of dealers trade in a relatively large number of asset classes, central clearing increases […]

And Finally…

It's going to be a very interesting few months in foreign exchange circles I suspect, not least for some management teams and particularly for the voice fraternity in our business. A friend made a very good point to me last week, reinforcing something I had noted in this column a few weeks back, that several […]

Tech Corner

Abu Dhabi-based brokerage firm ADS Securities has upgraded its foreign exchange post-trade services. The latest release of its proprietary trading technology Orex now offers connectivity to Thomson Reuters Trade Notification, MarkitServ/Logiscope, DealHub and Traiana middleware for straight-through processing, compliance and post-trade workflow automation. These services can be fully integrated with the Orex Optim trading platform. […]

On the Move

Tonkin Named Head of FX PB at BAML Dean Tonkin has been appointed head of futures, options, OTC clearing and FX prime brokerage with the Bank of America Merrill Lynch. Based in New York, Tonkin joined BAML as a managing director in August 2012 from Barclays Capital, where he had worked for over eight years. […]

NDF Trading Reaches New Peak

January was a particularly active month for trading in non-deliverable currency forwards, according to swap execution facility (SEF) data released by the Futures Industry Association. The latest FIA SEF Tracker report reveals that although no one single week of trading set a record during the month, the total volume of NDF trading over the four […]

CWM FX Refutes UK Police Allegations of Fraud

CWM FX, the London-based retail FX brokerage belonging to Capital World Markets (CWM), has strongly refuted police claims of "ongoing criminality" after 13 members of staff were arrested following a raid on its premises. The company is also currently seeking a new Financial Conduct Authority regulated partner after its partnership with Leverate was abruptly terminated, […]

Court Awards Trading Technologies $16 Million in CQG Patent Dispute

A US district court has found in favour of derivatives trading software vendor Trading Technologies (TT) against CQG, a market data and order routing provider, in a long-running patent infringement dispute. The US District Court for the Northern District of Illinois awarded TT a total of $15,884,106, but while the court upheld the claims that […]

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