Infrastructure/Foreign exchange
CCIL cleared forex forward volumes double following mandate
European banks start clearing in India despite no EU equivalency ruling
Ice to compete with CME and LCH.Clearnet on FX clearing
Competition in forex clearing intensifies as LCH.Clearnet receives regulatory approval and Ice explains how its rival offering will differentiate itself
Margin rules for uncleared FX rest with regulatory working groups
Regulators must adopt a calibrated approach to mandated collateral so that short-dated FX swaps and forwards are not caught up in the rules unnecessarily, argue market participants
Singapore’s FX exemption welcomed as a sign of global consistency
A proposal by the Monetary Authority of Singapore to exempt forex swaps and forwards from mandatory clearing is seen as a positive move to harmonise treatment of foreign exchange with the US
LCH.Clearnet’s ForexClear awaits regulatory approval
Forex clearing platform for NDFs is ready for launch, pending regulatory approval, LCH.Clearnet confirmed in its annual report
Forex repository aiming for mid-2012 launch, says DTCC
Following the launch of the interest rate derivatives trade repository last week, the Depository Trust & Clearing Corporation confirms foreign exchange and commodities are the next priority
Despite hurdles, clearers map out forex ambitions
Clearing hurdles
Emerging markets focus to boost NDFs despite clearing costs
Growth of non-deliverable forwards market will not be hit by impending clearing laws
CME Chilean peso clearing service awaits first trade
The CME blames FCMs for the delay in offering its clearing service of non-deliverable forwards in USD/Chilean peso
DTCC, Swift reveal details of repository plans
Swift will provide its existing FX derivatives messaging traffic while DTCC will leverage its expertise in the provision of repository services, the two firms have told FX Week
Further liquidity fragmentation in foreign exchange predicted
Market-damaging behaviour should be controlled, but separation or elimination of high-frequency trading would be damaging to the market’s equilibrium, ClientKnowledge argues in research published today
Banks and ECNs join forces to prevent FX flash crash
Citi, JP Morgan and Morgan Stanley join Deutsche Bank on Traiana's enhanced CreditLink service
Electronic trading and clearing of NDFs poised for growth in Asia
Asian regulators are expected to closely follow their peers in the US and Europe in demanding swap execution facilities and over-the-counter derivatives clearing in Asia. This may bolster e-trading for NDFs based on Asian currencies
HKEx to launch renminbi secondary market facility to support IPOs
The exchange says the new offshore renminbi secondary market liquidity pool will not introduce additional counterparty or forex risk, thanks to a back-to-back arrangement with interested partner banks and brokers
Industry in flux as electronic trading and risk control comes to the fore
Creative destruction
Icap to launch decimalised pricing on majors in February
Interdealer broker Icap will launch decimalised pricing on major currency pairs on EBS Spot on February 14, the broker told FX Week.
Saying no to algos
A number of banks have launched algorithmic trading systems for foreign exchange, intended to provide more efficient execution for clients. But some question whether algorithmic models are actually needed in the highly liquid foreign exchange market. By…
Renminbi realignment
The Hong Kong Monetary Authority is staking its claim to become the de facto offshore settlement centre for renminbi amid expectations the Chinese currency will one day usurp the greenback as the dominant medium of exchange in the region. But there are…
Lack of liquidity means a comeback for vol swaps
Dynamic replication of the payoff of volatility swaps on single stocks in illiquid markets is cheaper and easier than replicating variance swaps payoffs, dealers say.
Q2 profits a false dawn for banks, Moody's says
Rising funding costs, continuing writedowns and the withdrawal of government support could push the global banking industry back into crisis, analysts warned this week.
Race against the clock for European CDS CCPs
With just two weeks remaining until the European Commission’s deadline for central counterparties (CCPs) to begin clearing credit default swaps (CDSs), two of the competing platforms are still waiting for regulatory approval.