Day: September 29, 2017

HSBC Fined by Fed for “Unsafe and Unsound” FX Practices

The Federal Reserve Board has fined HSBC just over $175 million for the firm’s “unsafe and unsound practices” in its FX trading business.
The Fed says it levied the fine for deficiencies in HSBC’s oversight of, and internal controls over, FX. It adds that the firm failed to detect and address its traders misusing confidential customer information, as well as using electronic chatrooms to communicate with competitors about their trading positions.
The Board’s order requires HSBC to improve its controls and compliance risk management concerning the firm’s FX trading.

Deutsche Settles FX Manipulation Claim

One of two banks still to settle a class action lawsuit over FX manipulation claims has agreed to pay $190 million.
Court documents filed today (September 29) show that Deutsche Bank has agreed to settle, leaving Credit Suisse as the only bank of 16 that were named in the class action yet to agree a deal. The proposed settlement remains subject to a Fairness Hearing – Deutsche has also agreed to provide “reasonable cooperation” in the continued prosecution of the Action, according to court documents.

Vietcombank signs with Thomson Reuters

Vietcombank says it has selected Thomson Reuters Electronic Trading (ET) to power its business in Vietnam and strengthen its presence in both the local and international foreign exchange markets.
“As the leading financial institution in Vietnam in FX and money market transactions, Vietcombank is one of the first financial institutions in Vietnam to select Conversational Dealing within Thomson Reuters FXT and Electronic Trading platforms for our interbank dealing with both domestic and international counterparties,” says Nguyen Thi Kim Oanh, deputy CEO of Vietcombank. “We believe this fruitful partnership will continue in the future, as we achieve our target of joining the ranks of the top global 300 leading financial institutions.”

CEMPROSPECTS Conference Set for Rome

This years CEMPROSPECTS conference will take place at the Hotel Placio dei Principi in Rome from October 8-10.
The event will cover energy markets of relevance to the cement industry, notably coal and petcoke, as well as freights. The conference is also of relevance for producers and traders in these markets.
Time will also be dedicated to a debate on geopolitical events happening across the globe, including the US political scene, Brexit and legislative developments in the field of CO2 and sulphur emissions.

Regulation Forces FXPBs to Reinvent

It’s no secret that recent regulatory requirements have put FXPB business models under increased pressure. But some firms also see regulation as an opportunity to change how their businesses operate in order to win new business, as Galen Stops reports.

When questioned about the extent to which a combination of the Basel III regulations and the SNB
event had caused a contraction in the FXPB space, there was some pushback from certain service providers.

“I think that there’s a misperception that there has been a wholesale contraction in the FXPB space,” says John O’Hara, global head of FXPB and FX clearing at Societe Generale.