Infrastructure
Watchdog savages NAB
MELBOURNE -- National Australia Bank’s currency options desk will remain closed until it has satisfied requirements issued by its regulator in a damning report released last week.
Calyon names regional managers
PARIS -- Calyon, the group to be formed from the merger of Crédit Agricole Indosuez (CAI) and Crédit Lyonnais (CL) on April 30, has agreed the structure of its global spot FX business and appointed regional heads, a senior official said last week.
NAB OPTIONS SCANDAL - NAB crisis deepens with latest departure
MELBOURNE -- The staffing crisis at National Australia Bank (NAB) deepened last week as Peter Cunningham, joint global head of FX left the bank, in a move a NAB spokesperson described as a "mutual agreement".
Cancellable forward beats dollar pendulum
Cancellable forward contracts offer corporates a cheap way of protecting against volatile dollar receivables says Anders Kjaer Jensen, FX strategist at Nordea in Copenhagen
800 expected at ACI London event in May
LONDON -- Forex industry body ACI is expecting up to 800 FX officials to descend on London in May for its seventh European Congress, hosted by ACI UK.
SSiSearch adds 10 more for system testing
LONDON -- SSiSearch, a vendor of authenticated FX settlements reference data, said last week that 10 new clients are set to start testing the system, bringing the total number of banks now in trial with its global directory to 275.
Gartmore leads new hedge fund launches
LONDON -- Gartmore Investment Management has added to the recent explosion in currency funds with the launch of a new hedge fund. The fund, available to institutional investors around the world, builds on the firm’s 16-year track record in currency…
UK pension funds hesitant on easy returns
LONDON -- UK pension funds are increasingly considering currency as an independent asset class, but the process of educating and gaining approval from trustees is slowing adoption, officials said last week.
CLS processes first custodian trade
LONDON -- CLS Bank International, the repository bank for the continuous-linked settlement (CLS) service for FX, settled its first custodian trade on February 13.
Benchmarking against competitive exchange rates
The dollar decline has led to competitive divergences between those currencies that tag the dollar and those that have suffered. This is likely to bring increased FX volatility, says Peter Luxton, economic adviser at Informa Global Markets in London
NAB report to reveal ‘control breakdowns’
MELBOURNE -- Pricewaterhouse- Coopers’ (PWC) report on the forex options trading scandal that has shaken National Australia Bank (NAB) in recent weeks is expected to expose a number of risk control problems at the bank, Graham Kraehe, NAB’s new chairman,…
Ex-MMS team sets up new analysis firm
NEW YORK -- Three managers from the former MMS International, the currency analysis firm bought by publishing group Informa, have set up a new real-time technical analysis service for spot FX.
Deutsche closing gap on Citi?
FRANKFURT -- Deutsche Bank could be about to close the forex-earnings gap with rival Citigroup, if FX figures match the 33% dollar-terms improvement in its debt group, announced last week.
Accrual strategy counters euro/dollar vol
The next phase of dollar weakness is unlikely to be as monotonous as the previous one. Dollar sellers should therefore use an accrual strategy to exploit market volatility, says Bart Wong, senior FX structurer at Barclays Capital in London
New accounting rules put focus on training
LONDON -- New accounting regulations and recent instances of suspected fraud in the forex markets should make training financial markets staff a top priority, said officials at online training firm Intuition in London.
Informa completes analysis integration
LONDON -- Informa Global Markets (IGM), the new analysis firm formed through the merger of MMS International and MCM, has completed the integration of its analysis teams.
CAI, CL chiefs share top posts
PARIS -- Crédit Agricole Indosuez (CAI) and Crédit Lyonnais (CL) executives will share the management of foreign exchange after the two banks’ merger on April 30, it emerged last week.
FX group works on Fix 4.5
NEW YORK -- The Fix (Financial Information Exchange Protocol) FX working group is preparing an analysis of the requirements for applying the next version of the protocol to foreign exchange.
G10 trade keeps Citi earnings stable
NEW YORK -- Opportunities in the G10 currencies and efficiency gains from electronic trading helped maintain Citigroup’s strong FX earnings in 2003.
US holiday helps set record volumes on CLS and CME
NEW YORK/CHICAGO -- Record volumes were set on the continuous-linked settlement (CLS) service for foreign exchange, and on the Chicago Mercantile Exchange’s (CME) e-FX platform last Tuesday (January 20) after the US holiday the preceding day.
Spotlight on ‘points’ post FBI inquiry
NEW YORK -- The New York FX Committee is likely to revise its guidelines on FX trading and operational risk management this year, when it concludes a review into issues arising from the FBI’s arrests of 47 currency traders last November.
NAB chief admits weaknesses
MELBOURNE -- National Australia Bank chief executive Frank Cicutto last week admitted that weak internal processes had enabled the four traders it suspended on January 13 to carry out a suspected fraud.
Job fears over latest mega merger
NEW YORK -- FX jobs at Bank One may be in danger when JP Morgan Chase’s planned acquisition of the Chicago-based bank takes place in Q2, said recruitment consultants in New York and London last week.
‘Illegal trading’ costs NAB $140m
MELBOURNE -- Australia’s largest bank, National Australia Bank (NAB), became the latest victim of alleged rogue forex trading last week. The bank said on Tuesday (January 13) that it had uncovered losses of up to A$180 million (US$140 million) from…