Day: 6 September 2017

Profit & Loss Scandinavia is This Week

Profit & Loss Scandinavia is right around the corner, and more than 175 registrations have already been received, but there is still time to register.
This is the FX conference that puts the Nordic region directly in the spotlight and focuses on the specific challenges and opportunities in the Scandinavian markets.
Kicking off with a keynote address by the Riksbank’s Deputy Governor, Per Jansson, and featuring speakers from across the Nordic region, Profit & Loss Scandinavia (held in partnership with ACI Sweden and ACI Denmark), brings you together with regional banks and buy side clients in an exclusive setting for networking and new business development.

Behnam Confirmed as CFTC Commissioner

Rostin Behnam has been sworn in as a Commissioner of the US Commodity Futures Trading Commission (CFTC).

Benham was unanimously confirmed by the US Senate on August 3. His term expires in June 2021.

“I am honoured to join the Commission at this critical time, working hard to protect investors and ensure the market is free of fraud and manipulation,” says Behnam after his swearing in today. “I look forward to working with chairman Giancarlo, my fellow and future commissioners and staff to address the issues before the Commission and support safe, transparent and competitive markets.”

“I welcome Russ to the commission,” says CFTC chairman, Christopher Giancarlo. “I look forward to working with him cooperatively and collaboratively on the important work that’s ahead of the commission.”

Cobalt Joins BT Radianz Cloud

Cobalt, the FX post-trade processing network based on distributed ledger technology, has joined the BT Radianz Cloud.

This means that organisations can now access Cobalt’s private peer-to-peer and blockchain services via their Radianz Cloud connections. The Radianz Cloud links a community of thousands of brokers, institutions, exchanges and clearing and settlement houses. Through a single secure network connection, members can access thousands of applications and services from more than 400 providers critical to the everyday running of the global financial sector.

Cobalt deploys distributed ledger technology to try and remove cost and complexity from post-trade processing. It leverages blockchain-derived concepts of encryption, digital signatures and consensus to deliver a single, immutable record for each trade, replacing traditional systems, which often involve duplicated processes. By creating a shared view of trade data, Cobalt aims to free up back and middle office resources from multiple layers of reconciliation, speeding up processing.

Moex Launches FX Fixing Instruments

Moscow Exchange (Moex) is now offering instruments to trade at the Moex FX USD/RUB and EUR/RUB fixing prices with clearing and settlement via its clearinghouse, NCC Clearing Bank.

The new offering aims to provide Russian and international banks with a hedge against the currency risk of OTC trading in rouble NDF with the net return calculated at maturity as the difference between the forward rate and the Moex fixing rate.

The fixing instruments, USDRUB_FIX0 and EURRUB_FIX0, are traded from 10:00-12:15 MSK on days when the Moex USD/RUB FX Fixing and Moex EUR/RUB FX Fixing (?+0) are computed.

CME, NEX Report August Volumes

Following the mixed news from other platforms to report last week, the pattern of varying fortunes in terms of average daily volume (ADV) has continued with Nex Markets’ EBS reporting a month-on-month and year-on-year increase, but CME Group reporting a drop from July 2017 but a healthy rise from August 2016.
Nex says that ADV in spot FX was $83 billion in August on EBS, up 2% from July, but 21.3% up year-on-year. CME meanwhile, reports ADV in its FX futures and options on futures contracts was 817,000, the notional value of which, Profit & Loss calculates to be $81 billion per day. This is a 29.4% increase from August 2016 but 5% lower than July.

Judge Ticks Latest FX Benchmark Settlement Claim

Judge Lorna Schofield of the Southern District Court of New York has approved the proposed settlement that sees five banks pay $111 million for alleged FX benchmark manipulation.
The settlement, which was first proposed in July, involves Bank of Tokyo-Mitsubishi UFG, BNP Paribas, Morgan Stanley, Royal Bank of Canada and Standard Chartered Bank – all five banks continue to deny wrongdoing.
The approval of the latest settlement means banks have now paid in excess of $2.1 billion to settle claims related to the benchmark litigation.