Settlement Risk
Euro growth continuing, says ECB
FRANKFURT - Despite doubts over its survival at launch 10 years ago, the euro remains a strong player in the international currency market, according to the European Central Bank (ECB).
The technological arms race continues...
One of the key takeaways from the FX Week USA congress last Tuesday is that the unrelenting spend on technology seen over the past few years is unlikely to end. A quick poll of delegates found that two-thirds will spend more on technology in fiscal year…
Asia should ditch USD to cut settlement risk
HONG KONG & TOKYO - US dollar settlement risks in the Asian foreign exchange market could be reduced by using an Asian vehicle currency for intra-regional trade and direct settlement among Asian currencies, according to economists.
SuperDerivatives upgrades forex platform
LONDON - Seven banks have begun using upgraded pricing and risk management software offered by SuperDerivatives that includes expanded exotics support and integrated price discovery, marketing, reporting and online execution.
Between a rock and a hard place
Patrick Lefler, foreign exchange consultant at Wall Street Systems in New York, looks at the future of CLS as demand grows for bilateral netting
CLS live with Israeli shekel and Mexican peso
LONDON & NEW YORK – CLS Bank is today (May 26) launching settlement of Israeli shekel and Mexican peso foreign exchage trades in a move that expands its footprint in the emerging market currencies.
More work needed on settlement risk
BASEL - Central banks are calling for more action to eliminate foreign exchange settlement risk, despite significant progress over recent years.
New roadmap standardises messaging
GLOBAL - A group of financial market messaging organisations released details of an investment roadmap designed to standardise messaging use across the industry earlier this month.
More work needed on settlement risk
BASEL - Central banks are calling for more action to eliminate foreign exchange settlement risk, despite significant progress over recent years.
Euro threat remains, says UK's House of Lords
LONDON - The euro has managed to avoid an initial quick collapse predicted by many, but the threat has not yet passed, according to the UK's House of Lords.
Exchange-traded forex volumes up 41% in April
CHICAGO & NEW YORK - CME Group foreign exchange volume averaged 613,000 contracts a day for the month of April, up 41% on the same month last year. Average daily volumes for FX contracts in the three-month period ending April were also the highest…
Citi targets EM settlement
NEW YORK & BOGOTA - Citi's domestic settlement service is set to gain a foothold in emerging markets where CLS is currently not active.
FXMS enters CLS market
LONDON - FXMarketSpace (FXMS) has launched an alternative system for settling foreign exchange trades over the platform, in an effort to tackle risks and costs associated with settling trades from high frequency traders.
FXMS initiatives need to see volume
FXMarketSpace's initiative to launch an alternative settlement system to industry utility continuous linked settlement is a bold one.
Forex is surviving the credit crunch
The Fed-backed sale of Bear Stearns to JP Morgan has sharpened focus on counterparty risk, with Lehman Brothers as the main target. Although the bank allayed concerns with better-than-expected results, the general crisis of confidence still remains.
CLS Bank sets record for payment instructions value
LONDON & NEW YORK - CLS Bank set a record for the value of payment instructions settled in a single day on March 19.
Lehman Bros comes under fire in Asia
SINGAPORE - Attempts by Lehman Brothers to quash rumours that DBS Bank, Singapore's largest bank, had ceased trading with it last Monday (March 17) failed to reassure traders in Asia.
Doubts over CLS 'warehouse' system
LONDON & ZURICH - The competitive nature of back-office capacity could curtail adoption of a proposed solution by settlement system CLS to manage strains placed on these systems by surging ticket volumes, say industry experts.
CLS calls for operations change
LONDON - Four banks are in discussions to use a warehouse solution by settlement system CLS, in a push to reduce capacity constraints at their back offices brought on by surging ticket volumes.
London still top of the forex markets
LONDON, NEW YORK, TORONTO & SINGAPORE - London holds firm as the leader of the foreign exchange world, as year-on-year forex growth in the UK continues to outstrip that of the US, according to the latest figures released by regional trade bodies.
CLS product expansion welcomed
CLS's announcement last week that it has begun settling credit derivatives trades demonstrates the industry utility's efforts to reduce the unit cost and total bill for settling forex trades over the system.
There's nothing as certain as change
Happy New Year! As we enter 2008, one thing is for certain - the evolution of the foreign exchange industry continues at an unprecedented rate.
FXall posts record volumes for 2007
LONDON - Multibank portal FXall reported record annual trading volumes of over $13.4 trillion - single count - in 2007, a 37% rise over 2006 figures.