Month: November 2015

Parker FX Index Down in October; Discretionary Index Nudges Higher

The Parker FX Index fell -0.60% for the month of October. On a risk-adjusted basis, the Index was down -0.27% from September. Twenty-eight of the thirty-one programs in the Index reported October results, of which nineteen showed losses and nine reported positive results. The median return for the month was -0.69%, while the performance for […]

IMF Adds Renminbi to SDR Basket

Today the International Monetary Fund (IMF) executive board completed its regular five-yearly review of the basket of currencies that makes up the Special Drawing Rights (SDR) basket and decided that the Chinese renminbi (RMB) meets the existing criteria to be included in the basket. Effective October 1, 2016, the RMB will become the fifth currency […]

Barclays Facing Further FX Lawsuit

Barclay’s FX business’ woes have continued with a US-based fund bringing a class action lawsuit against the bank over its use of last look. The bank was fined $150 million earlier this month over its use of the controversial practice. In its lawsuit, Axiom Investment Advisors claims it, and other firms were “unfairly deceived” by […]

FXecosystem Connects to Hibernia Link

Connectivity provider FXecosystem has become one of the first organisations to be upgraded onto Hibernia’s new Ultra 5 Express Circuit which provides an even faster connection between London and New York. FXecosystem says it can now offer clients a reduced RTD (return trip delay) between London and New York of 63.36 milliseconds, down from 65.36 […]

IMF Expected to Confirm RMB Entry to SDR

The board of the International Monetary Fund (IMF) is expected to formally ratify the Chinese renminbi’s inclusion in its Special Drawing Rights (SDR) basket. The decision, which was signaled earlier this month by IMF chair Christine Lagarde, will see the RMB join the dollar, euro, Sterling and yen in the basket, and likely lead to […]

Consolidated Swap Data Feed Launched

Interactive Data has added Global Trade Repository Analytics’ (GTRA) normalised swap data from the four principal Swap Data Repositories (SDR) to its Consolidated Feed product. The firms say that accessing and collating that data from the SDRs globally is “ time and resource-intensive process in its own right, even before the more complex and costly […]

PBoC, ECB test Swap Arrangement; PBoc Unveils Offshore Parties to FX Market

The People’s Bank of China and the European Central Bank have successfully completed tests of their existing bilateral currency swap arrangement. From a Eurosystem perspective, the ECB says the arrangement serves as a backstop facility to address sudden and temporary disruptions in the renminbi market due to liquidity shortages in euro area banks. “Liquidity providing […]

And Finally…

Following last month’s appearance in this column by Run DMC, this week another surprising name pops up – Jeremy Clarkson! How? Well most observers expect there to be more “flash” moves in exchange rates, which raises the question – can (and how does) a prop trader take advantage of such price action? I use the […]

Banks Face Swaps-Related Lawsuit

A group of banks and two trading platforms have been named in a class action lawsuit claiming unfair practices in the interest rate swaps market. The class action lawsuit was filed Wednesday by The Public School Teachers’ Pension and Retirement Fund of Chicago, and accuses Bank of America Merrill Lynch, Barclays, BNP Paribas, Citigroup, Credit […]

2016 The Year of The Yen – JP Morgan

JP Morgan (JPM) has released its 2016 currency forecasts and among the majors, the bank’s analysts pick the Japanese yen (JPY) as the star-turn for next year, with fundamentals and politics providing supportive pillars for the Japanese currency. The bank expects JPY to appreciate against most of G-10 currencies including USD and the pace of […]