Foreign exchange
Eliminating foreign exchange translation risk
FX translation can mis-represent a company's profit growth on its balance sheet. Cliff Bayne, senior exotics dealer, and Terence Yiu, chief dealer, at ABN Amro in Singapore, explain how to hedge the translation risk at minimal cost
CSAM to add emerging markets to FX management
LONDON – Credit Suisse Asset Management (CSAM) is looking to add emerging market currencies to its suite of forex management services from early next year.
Return of the voice broker
Cantor Fitzgerald revives voice broking market with spin-off firm. NEW YORK - Cantor Fitzgerald reversed a trend of consolidation in the broking market last week by spinning off a new firm to focus exclusively on voice broking.
CSFB gets OK for derivatives in China
HONG KONG – The China Banking Regulatory Commission (CBRC) authorised Credit Suisse First Boston (CSFB) to launch a financial derivatives business in China last week.
Bloomberg and Cognotec partner on streaming rates
LONDON – Bloomberg is bringing streaming FX rates to users of its Bloomberg Professional terminals, courtesy of a joint venture with FX vendor Cognotec, the two firms will announce today (August 2).
Overcharging costs eclipse AIB’s H1 dealing profits
DUBLIN – Allied Irish Banks (AIB) last week announced first half dealing profits of e41 million ($50 million) – less than the amount the bank has set aside to cover costs linked to overcharging for FX deals.
ABN Amro launches IR Mini-Swaps for the risk averse
LONDON – ABN Amro has launched an interest rate hedging tool for clients who do not want to use derivatives to gain exposure to this market.
China and India to halt repatriate flow to US
HONG KONG – Massive investment opportunities in China and India may help Asia withstand a flood of currency repatriation back to the US in the wake of new tax bill the Homeland Investment Act.
Dollar vol could be back
LONDON – The global currency markets could be in for a bout of unseasonal volatility and trading activity if the US dollar breaks through its recent range against the euro, traders said last week.
AIB repays e 26m for overcharging
Customers to be repaid as regulator's report details AIB's "failures" DUBLIN – Allied Irish Banks (AIB) said it is repaying e 26 million ($32 million) it overcharged clients on three million FX deals, after a regulator slammed the bank in a report last…
Billiton transfers forex to Europe
MELBOURNE – Australian banks in the UK could see added flow going through their FX dealing desks later this year, when the world's largest mining company transfers its remaining forex trading from Melbourne to Europe.
Making amends for seasonal trends
Lower volatility and range-bound markets call for capital preservation with enhanced yields during the summer, says Jeffrey Lins, director of quantitative analysis at Saxo Bank in Copenhagen
Industry altered by e-trading
NEW YORK – E-trading has changed the way banks communicate with their clients, agreed panelists in an e-FX debate at the FX Week USA Congress last week.
FXC issues broker points rules
NEW YORK – The Foreign Exchange Committee, a US industry association affiliated to the Federal Reserve, last week issued new guidelines on broker ‘points’ – the issue at the heart of last year’s massive Wall Street forex fraud.
The flight from NAB continues
LONDON – The flood of departures from National Australia Bank (NAB) continued last week as three senior institutional dealers left the bank in London and New York.
US banks still seeing record earnings
NEW YORK – Record earnings from foreign exchange continued into the first half, according to US banks’ financial results published last week. Citigroup, State Street and Bank of America all reported new highs in their FX or trading results, as currency…
Structured euro deposit adds cash as it hedges
A structured deposit denominated in euro can fulfill the twin goals of a European company by hedging its US dollar payables and generating a cash-rich position in its functional currency, says Didier Meyer, FX structurer at SG Corporate and Investment…
JPMC’s merger plans revealed
NEW YORK – JP Morgan Chase’s plans to absorb Bank One’s global foreign exchange trading business became clear last week, following the completion of the US banks’ merger on July 1.
Forex TV moves to Nymex trading floor
NEW YORK – Forex Television is this month moving to a trading floor in the New York Mercantile Exchange (Nymex) building. The trading floor will be operated by sister firm e-FX Trader, which was set up in March to offer trading services in conjunction…
International Assets buys Global Currencies
FLORIDA – International Assets Holding Corporation (Intl), an emerging market-focused financial services company, last week (July 7) purchased the FX operations of UK-based Global Currencies for $2.4 million. The payment comprised $1 million cash plus…
Rivals gear up for FX clearing
LONDON – The stage is set for a central counterparty clearing (CCP) system for FX as two potential providers moved their plans forward last week.
Korean CLS utility opts for PAYplus
The utility through which Korean banks will use the continuous linked settlement (CLS) service for FX, has selected vendor Fundtech’s PAYplus as its core application, it said last week.
AIG restaffs FX post-merger
LONDON – Banque AIG, a subsidiary of AIG Financial Products, has hired six sales and trading specialists in a bid to upgrade the FX component of its cross-product service.