Day: 13 March 2015

Investors Need Clarity on CCP Default Management: Report

A clear majority (80%) of institutional investors believe that mandatory central clearing of derivatives has reduced systemic risk in global financial markets. Yet a lack of understanding about the processes clearinghouses use to manage defaults is contributing to a widespread belief that additional measures are needed to mitigate risk, according to a Greenwich Associates report […]

DOJ, Plaintiffs Agree Six-Month Break in FX Lawsuit

The US Department of Justice has reached an agreement with claimants pursuing an antitrust litigation lawsuit against 12 large FX banks to pause most of the legal proceedings until September, amid a DOJ criminal investigation. The plaintiffs, including public pension funds and investment managers, are accusing major dealer banks of colluding to manipulate the $5 […]

BoE Fingers E-FX Platforms as Contributing to Swiss Chaos

Changes in FX market structure, specifically the advent of electronic trading, may have added to the extreme volatility experienced in the market following the sudden abolition of the 1.20 EUR/CHF cap, according to the Bank of England. The Bank blames the banks’ ability to close down their e-trading platforms, as well as the lack of […]

FXCM Estimates Circuit Breakers Saved Clients $100m During SNB Event

FXCM has published a blow-by-blow account of the severe lack of liquidity and extreme pricing during the ‘flash crash’ on 15 January, resulting from the Swiss National Bank’s shocking decision to remove the 1.2000 EUR/CHF floor. The compiled data points demonstrate “the unprecedented dysfunction of the FX market” the firm says, adding there was “almost […]

BATS Closes Hotspot Deal

BATS Global Markets has officially closed its acquisition of Hotspot FX. The deal was first announced on 28 January, and received Hart-Scott-Rodino clearance from the US Department of Justice on 18 February. Hotspot will continue to be led by Bill Goodbody, who has been a managing director at the firm since 2008. He and the […]