The US Commodity Futures Trading Commission has issued an Order simultaneously filing and settling charges against JP Morgan for what it says was the attempted manipulation and "muscling" of the US dollar ISDAFix 11am benchmark including the submitting of false rates. The order also requires the bank to pay a $65 million civil monetary penalty and is related to actions undertaken by certain of its traders over a five-year period, beginning in at least January 2007 and continuing through January 2012.
The Commodity Futures Trading Commission (CFTC) has fined Societe Generale (SocGen) $475 million, and the US Department of Justice (DOJ) another $275 million, for attempted manipulation of and false reporting in connection with the London Interbank Offered Rate (LIBOR) and Euro Interbank Offered Rate (Euribor).
More specifically, the CFTC accused the French bank of attempted manipulation of and false reporting in connection with the LIBOR for US Dollar, Yen and Euro, and the Euribor, certain instances of manipulation of Yen LIBOR, and aiding and abetting traders at another bank in their attempts to manipulate Euribor.
This misconduct apparently spanned more than six years, from 2006 through mid-2012.
The average daily volume (ADV) of trades submitted to CLS was $1.78 trillion in April, down 4.2% from March 2018, but up 17.2% year-on-year.
The ADV of swaps submitted to CLS was $1.24 trillion last month, down 2.3% from March, but up 25.5% compared to April 2017.
The spot ADV was $433 billion in April, down 9.8% month-on-month, but almost flat compared to the $435 billion of ADV that it registered the same month last year.
Forwards were the only product type where the ADV of trades submitted to CLS grew last month. The $106 billion of ADV for forwards registered in April was a 2.9% increase from March and up 14% compared to April 2017.
Societe Generale Corporate & Investment Banking (SG CIB) has announced a partnership with BestX, an independent transaction cost analysis (TCA) provider for algo FX spot execution.
The partnership with BestX will enable SG CIB clients to assess the costs and execution performance of their FX transactions through an analytical framework, the bank says. In addition, clients will be able access to a unique set of analytics, which will measure many aspects of execution performance, including spread and impact costs and signalling risk.
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Deutsche Bank has signed the statement of commitment to the FX Global Code to support an industry-wide initiative to promote integrity in the foreign exchange market. The bank’s statement has been posted on the CLS Global Code Register.
The FX Global Code is a set of global principles of good practice that was developed by central banks and market participants and launched last year. By signing up to the Code, Deutsche Bank says it has committed to continuing to run its FX business according to these principles, which cover topics such as ethics, governance, information sharing, risk management and compliance.
In the statement, the bank says that the business lines with the group that participate in the FX market
“This is a positive step. It demonstrates our ongoing commitment to a fair, transparent, and resilient foreign exchange market and holding ourselves to the highest standards of behaviour,” says Ram Nayak, head of global fixed income and currencies at Deutsche.
Deutsche Bank took an active role in the drafting of the Code with Russell Lascala, global co-head of global FX, representing the bank on the Market Participants Group. The signing of the Statement by Deutsche brings the number of institutions on the CLS Register to 19, these include Barclays, Citi, Goldman Sachs, JP Morgan and XTX Markets.
The minutes from the European Central Bank’s latest monetary policy meeting reveal anxieties about nations manipulating their currencies for competitive gain.
According to the ECB minutes, which were released today, “A number of remarks were made about recent exchange rate developments.”
It was noted in the minutes that while the euro exchange rate is not a target of ECB policy, movements in the exchange rate are deemed important insofar as they can affect the outlook for growth and inflation in the euro area.
UOB has added two FX solutions to its suite of cross-border financial products and services in China.
The bank has rolled out a solution that enables onshore banks in China to trade directly with banks overseas via the R5-SHCH Connect without having to source for counterparties and to negotiate trade prices individually.
The second FX solution is direct trading between the RMB and the Thai baht, with the bank claiming it is among the first market makers able to support direct trading for its clients through the China Foreign Exchange Trade System (CFETS).
CLS is releasing a new foreign exchange (FX) forecast data report as part of its suite of data products.
CLS's FX Forecast data will provide subscribers with a forward looking view of FX markets on an hourly basis, which the firms says will enable them to quickly detect potential price movements and identify times to trade with greater liquidity, reducing market impact and signalling risk.
In addition, CLS's claims that this data will offer significant benefits to risk and compliance teams, enabling market participants to better predict volume and rate changes, which can help inform their models and views around volume surges.
BNY Mellon has opened an FX trading room in Seoul, Korea, offering liquidity both to domestic clients in Korea looking for exposure to major global currencies as well as to counterparties seeking to trade KRW across Asia-Pacific and around the globe.
Clients transacting through the trading room will be able to execute strategies using a variety of instruments, including spot, FX forwards and non-deliverable forwards.
“BNY Mellon is strengthening its capabilities in Korea to provide a more convenient and comprehensive KRW FX trading service to our domestic and international clients, while also helping them conduct their business more efficiently. This reflects our deep commitment to the Korean market and our confidence in the expansion of our FX trading business,” says Mark Militello, head of markets for BNY Mellon in APAC.