Regulation
Review of 2011
As 2011 draws to a close, FX Week looks back on a year in which the decisions of politicians increasingly came to define the direction of major currencies, while the progress of regulatory reform was stunted by missed deadlines and challenging technical…
Corporates fear move to platform trading for FX options
Despite being exempt from clearing and exchange trading requirements in the US and Europe, some corporate treasurers fear they might have little choice but to execute FX options on electronic platforms
Global FX division kicks off outreach programme on trade reporting
Industry outreach sessions focus on preparing institutions to meet reporting requirements for FX contracts, as final CFTC reporting rules expected next week
Spotlight on: Jeffrey Hogan, BGC Partners
BGC’s managing director for business development talks to Joel Clark about the interdealer broker’s voice and electronic broking capabilities in FX, and his extensive work with regulators to ensure new rules for over-the-counter derivatives are…
FX repository aiming for mid-2012 launch, says DTCC
Following the launch of the interest rate derivatives trade repository yesterday, the Depository Trust & Clearing Corporation confirms FX and commodities are the next priority
FX Week Europe: FX clearing has taken an illogical course, panellists warn
Non-deliverable forwards are the current focus for FX CCPs and banks, but panellists point out the risk in those products is negligible
Rationale for clearing all FX products is evident, say CCPs
Speakers at a conference in London discuss the exemption of FX swaps and forwards from mandatory clearing requirements
RMB diversification is ‘strategic’ says Nigeria’s central bank governor
Lamido Sanusi explains why he made the decision to convert 10% of the country’s reserves into renminbi
CME vows to expand NDF clearing by year-end
Expansion of the exchange’s nascent NDF clearing platform to include a broader range of NDFs is set to begin within weeks, according to Roger Rutherford
Regulators plan co-ops as answer to OTC fragmentation
CLS Bank-style regulatory council could be applied to trade repositories and CCPs to avert market fragmentation, but French regulators are not convinced
Eurozone members expected to decrease, Bloomberg survey finds
The results of the vendor’s latest industry poll suggest the number of countries in the eurozone will fall within the next five years
Yen expected to remain weak as long as Greek package is implemented
Foreign exchange strategists and traders have judged this week's Japanese intervention a success in weakening the yen, and believe USD/JPY should remain higher as long as the eurozone crisis doesn’t spiral out of control and spark a flight back to the…
AUDIO: The Enronisation of Europe
Nick Beecroft, senior markets consultant at Saxo Bank, discusses the weaknesses in the EU bailout package, and the broader implications of a Greek referendum on the Eurozone
A tax too far?
The European Commission's recent proposal to impose a financial transaction tax from 2014 appears to ignore lessons learned in drafting other recent regulations
Turkish intervention poses threat of inverted currency war
A wave of intervention by Turkey and Poland’s central banks to strengthen the lira and the zloty could lead to an inverted currency war if other central banks follow suit, according to strategists. Chiara Albanese reports
Corporates fall on tough times
The recent volatility in foreign exchange markets has caused uncertainty for corporate treasurers and led to some changes in their strategies. How are banks helping corporates to tackle the current challenges and the increased costs that will result from…
Industry lobbying against EU transaction tax intensifies
The European Commission’s recent proposal to tax financial transactions by up to 0.1% has sparked a frenzied wave of lobbying from industry bodies concerned it could drive FX trading outside the EU and diminish London’s standing as an FX centre. Chiara…
Industry calls for further clarity on Mifid II
The European Commission tabled proposals to revise the Markets in Financial Instruments Directive on October 20. But traders remain concerned about the implications of a one-size-fits-all approach to foreign exchange
FX Week Asia: Options clearing on hold, prime brokers confirm
FX clearing will be restricted to non-deliverable forwards as US authorities discuss whether settlement risk can be properly managed for cleared FX options, according to speakers at the FX Week Asia conference in Singapore
FX Week Asia: World economy 'needs alternative reserve currency'
Chinese renminbi looks poised for reserve status, but still no consensus on when it will happen due to forces beyond "anyone's control", senior academic tells FX Week Asia conference in Singapore
Emerging markets focus to boost NDFs despite clearing costs
The growth of the non-deliverable forwards market will not be hit by impending clearing laws
Multiple repositories will protect against technological failure
Regis-Tr will roll out its reporting services for foreign exchange in mid-November
RMB’s rise to reserve currency status accelerates
The possibility that renminbi will become a reserve currency in its own right appears to be becoming a reality, as a number of central banks have begun to diversify into the Chinese currency. Chiara Albanese reports
Central banks shy away from euro reserves
New data from the IMF’s currency reserves database suggests reserves accumulation has slowed during 2011 and the appetite to hold euro reserves has also waned, particularly on the part of emerging market central banks