Month: December 2015

And Finally…

And so, in a (probably futile) attempt to summon up some holiday season cheer, I have left the two positive Irrationals to last, today is the Bank of the Year, and on New Year’s Eve I will reveal my Person of the Year (yes, yes, I know you can’t wait but you’ll have to). This […]

Report: Mispriced FX Transactions Costing EU Asset Managers €1.5bn

Mispriced FX transactions cost the European fund industry and their underlying clients EUR 1.5 billion per year, according to a new study conducted by a London-based think tank, New City Initiative. The report, authored by Henry Wilkes, an independent consultant and former global head of FX sales at Brown Brothers Harriman, also claims that $590 […]

R3 Adds 12 Banks, Targets Non-Bank Sector

Financial innovation company R3 has concluded its distributed ledger bank membership round with the addition of 12 new banks, bringing the total number to 42. Since its September launch, the company says it has seen a groundswell of interest in the consortium from financial services companies around the world. The initiative is designing and developing commercial […]

NBIM Steps into the Last Look Debate

In the latest issue of its Asset Manager Perspective, Norges Bank Investment Management investigates the role of last look in FX markets. The fund acknowledges that the practice “serves a legitimate need” of liquidity providers and can improve liquidity available to investors, however it also notes there are “intrinsic conflicts related to the asymmetry in […]

Bats Hotspot to Add Products, Market Data Service

Bats Hotspot is planning to add FX forwards, swaps and options to its platform and is considering introducing market data products and connectivity fees. In a regulatory filing to the US Securities and Exchange Commission, the firm says its launch of a London matching engine earlier this year, “will provide us with better access to […]

Pillitteri, Cifuentes the Latest Departures at Morgan Stanley

Giovanni Pillitteri, managing director and global head of FX and interest rates electronic trading, and Andres Cifuentes, FX sales, have left Morgan Stanley, according to market sources. Profit & Loss previously reported that Morgan Stanley started cutting FX and fixed income staff at the beginning of the month, with the names of more staff departures […]

FINMA Issues Industry Bans Against FX Traders

The Swiss Financial Market Supervisory Authority (FINMA) has issued industry bans against six former UBS staff involved in the bank’s FX and precious metals business. The regulator concluded that the six managers and traders in question were directly responsible for the serious breaches of regulation at UBS in these business lines, as communicated in 2014. […]

CFTC Passes Final Uncleared Swaps Margin Rule – With Reservations

The Commodity Futures Trading Commission has passed the final rule on margin requirements for uncleared swaps, however one commissioner has dissented over the move and another noted the rule “reflects a disingenuous reading of the Dodd-Frank Act to favour cleared derivatives over uncleared swaps”. CFTC says that margin requirements will protect the safety and soundness […]

Buy Side Commits to CDS Clearing

The International Swaps and Derivatives Association, (ISDA), Managed Funds Association (MFA) and SIFMA’s Asset Management Group have announced that several of the associations’ collective member firms have pledged to begin voluntarily clearing their single-name credit default swap (CDS) trades through central counterparties (CCPs). The 24 buy-side firms that have committed to single-name CDS clearing are: […]

Swap Spreads are Still a Worry: BoE

In its recent Q4 Quarterly Bulletin, the Bank of England (BoE) touches upon the recent trend of narrowing swap spreads – the difference between interest rate swap and government bond yields of equivalent maturity – and points to “short-term, temporary factors” as reasons behind the move. However the BoE does note that structural changes, particularly […]