Malaysia’s central bank, Bank Negara, has announced the loosening of foreign exchange controls as it further liberalises the local FX market.
Under the new regulations, local companies will no longer need to convert foreign earnings back into Malaysian ringgit before re-converting to another currency at a later date, instead exporters will be allowed to automatically sweep export proceeds into their trade foreign currency accounts maintained with onshore banks to meet up to six months’ foreign currency obligations, subject to pre-reporting those requirements.
CLS Group FX volumes have confirmed the trend established by those major platforms to report data by revealing that it handled $1.64 trillion per day in July 2018, down 13.7% from the previous month but up 2.6% year-on-year.
Forwards volumes at $107 billion per day were actually up on June by just over 10%, however there were larger falls in spot ($416 billion from $498 billion) and swaps ($1.15 trillion from $1.3 trillion). Year-on-year, forwards and swaps volumes were up at CLS. However again spot volume was lower.
The Global Foreign Exchange Committee (GFXC) has added a negative example for Principle 11 of the FX Global Code – which deals with pre-hedging – to the document’s Annex. The update has been released alongside the minutes from the GFXC’s recent meeting in South Africa as well as a paper – The FX Global Code at One Year: A look Back and a Look Ahead – that summarises the achievements around the Global Code over the past year, but that also looks ahead to the work to be done.
It has been revealed that ACI – The Financial Markets Association (ACIFMA) is to draft an Amicus Brief, an expert submission on technical details, in defence of Mark Johnson, who is appealing his conviction in a US court for wire fraud relating to an FX hedging transaction for Cairn Energy. Johnson was sentenced to two years in jail following his conviction, but has since won an application for bail pending the appeal. Bruno Langfritz, chairman of ACIFMA talks to Profit & Loss about the Amicus Brief initiative.
CLS has announced today that the first Japanese-domiciled funds have access to CLSSettlement as third-party clients.
Asset manager Fidelity International and The Master Trust Bank of Japan (MTBJ), a trust bank exclusively engaged in asset management, have the first Japanese-domiciled funds to settle FX transactions in CLSSettlement. CLS says that this marks the start of a coordinated industry-wide effort to onboard the Japanese buy-side community to its settlement service over the next few years.
Fidelity International and MTBJ are being supported by Brown Brothers Harriman (BBH), which acts as MTBJ's custodian for non-Japanese securities and related currency movements outside of Japan. BBH has made its third-party access to CLSSettlement available to facilitate MTBJ's settlement of FX transactions.
LMAX Exchange has announced the launch of the LMAX Exchange Everest Rugby Challenge, hosted in partnership with Wooden Spoon, the UK’s children’s rugby charity.
Taking place in April 2019, the event will mark the first-ever attempt to set two Guinness World Records for the highest altitude rugby matches on Mount Everest. The event will aim to raise a minimum of £200,000 for Wooden Spoon, a charity committed to transforming the lives of disadvantaged and disabled children and young people across the UK and Ireland through the power of rugby.
The two records are for the highest altitude game of full contact rugby played and the highest altitude game of mixed touch rugby played.
Mark (“Speedo”) Bruce, head of FICC, Matt Schrecengost, COO, Peter Deaner, head of Europe, and three additional colleagues from Jump Trading, will undertake a relay swim across the English Channel next week – from Dover to Calais – as part of the company’s annual challenge to itself to take part in an event that raises funds to support worthy charities. The team will follow Channel Swimming Association rules and conquer the challenges associated with it and those which come with that stretch of water.
The FICC Markets Standards Board (FMSB) has published its Behavioural Cluster Analysis (BCA) study, a piece of research that has reviewed the behavioural patterns in 390 cases of misconduct in financial markets over an extended period of time (225 years stretching back to 1792) and covering 26 countries and multiple asset classes. This review indicates that the behavioural patterns evident in misconduct events are not unique to each case but that the same 25 behavioural patterns are evident in market misconduct cases and these consistently repeat and recur over time.
Following the closing of the strategic partnership transaction between Thomson Reuters and private equity funds managed by Blackstone, the Thomson Reuters Financial & Risk business will be known as Refinitiv.
Closing of the transaction is expected to occur in the second half of 2018 and until then the business will continue to be known as Thomson Reuters Financial & Risk. The firm says, “The new name was created based on feedback from customers and industry influencers on the intrinsic value of the Financial & Risk business to the industry."
The latest round of FX turnover data from six of the world’s FX Committees shows volume at its highest level since they started recording results in 2005. The new high mark was powered by new peaks in activity in the UK, Singapore, Japan and Canada.
The total turnover across Australia, Canada, Japan, Singapore, UK and US was $4.883 trillion per day in April 2018. If the six centres maintained their current share of global turnover, the numbers suggest a BIS survey number just shy of $6 trillion per day.