Post-trade
HSBC’s profits up by a third
LONDON – HSBC’s FX profits so far this year are up by more than a third compared with last year, with a massive $902 million earned from FX dealing in the first half.
Currency transfers for multiple entities
Straight-through processing FX for intra-company transfers used to be impossible. Royal Bank of Scotland’s Stamos Fokianos explains how this can now be done via RBS FiX
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.
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.
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…
Spitzer to drop RBC inquiry
NEW YORK – Eliot Spitzer, the New York State attorney general, will not pursue a formal inquiry into Royal Bank of Canada for overpayments its clients made on FX trades, FX Week has learned.
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.
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.
"What is risk management?" ask Risk USA speakers
BOSTON – The way banks and other financial institutions think about – and sometimes misinterpret – risk management formed the main theme of the opening keynote speeches at FX Week sister publication Risk 's USA conference held last week.
Election uncertainty hits Phillippine peso trading
MANILA – Market participants in the Philippines are anticipating a return to volatility in the next few weeks, as uncertainty over the recent elections clears up.
Improver knock-in forward for dollar bears
With the widely held belief that dollar/yen has scope to fall much further, Royal Bank of Canada's financial engineering team in London proposes a solution for a client wanting to buy US dollar forwards at more attractive rates. An 'improver knock-in…
Snow hails CME's China deal
CHICAGO – The Chicago Mercantile Exchange (CME) has forged a ground- breaking deal with a central bank-sponsored FX trading platform in China, in a move hailed by US government officials as a crucial step towards renminbi flexibility.
Reuters sees sales turnaround
LONDON – Reuters chief executive Tom Glocer last week announced the first positive month for sales since May 2001. Speaking at an investor's conference in London, Glocer said sales of the vendor's data and technology products in May 2004 exceeded…
CME and Reuters pool liquidity
LONDON – Trading systems vendor Reuters and the Chicago Mercantile Exchange are bringing together their pools of buy-side and sell-side liquidity in what may be the first move towards an exchange model for the FX market.
The one-year physically settled average rate forward
Capping and flooring a daily cable fixing rate offers a UK corporate with US dollar receivables an attractive risk/reward profile for zero premium, says Selene Chong, of HSBC’s FX structuring team in London
ACI European Congress: exhibition preview
Delegates at the seventh ACI European Congress this week will have plenty to keep them busy, as vendors and banks line up a vast array of product demonstrations and promotions.
Congress rise slows Indian rupee ascent
MUMBAI – The success of the Congress Party in the recent Indian elections sent tremors through the FX market last week, and may have a longer-term negative impact on the world’s largest emerging currency market.
CLS is 'changing the front-office'
LONDON – The continuous-linked settlement (CLS) service for FX trades has changed credit and trading practices among the majority of its users, reveals research from IT consultancy TowerGroup to be published this week.
Vendors gather for DWT
LONDON – FX and trading technology vendors are gathering in London this week for the tenth annual Dealing with Technology exhibition.
AIB rapped for overcharging
DUBLIN – Allied Irish Banks (AIB) sailed into another forex controversy last week, as it emerged the bank has been overcharging for forex deals for the past eight years.