Regulation/Foreign exchange
EU benchmark drama set for cliffhanger end
Access to key FX rates due to be decided six months before potential cut-off
FSB comments on FX margin surprise industry
The FSB’s call for the Basel Committee and CPSS to set provisions on variation margin for FX derivatives appears to cross over with the Working Group on Margin Requirements, say observers
Margin for longer-dated uncleared FX would be unpopular, FSA official admits
While the idea behind a maturity threshold for forex collateral requirements makes sense to regulators, FSA speaker at FX Week Europe recognises the industry's opposition
Uncleared FX not necessarily more risky, says BoE’s Cross
Proposed rules could result in relatively vanilla forex products attracting disproportionate margin and capital requirements, says BoE FX division head
Confirmation of US Treasury FX exemption brings relief to FX dealers
After two years of consideration, the US Treasury confirmed its decision to exempt forex swaps and forwards from mandatory clearing and exchange trading on Friday evening
Volcker rule could hurt liquidity in FX spot market, participants warn
Foreign exchange swaps and forwards should be exempted from the Dodd-Frank ban on prop trading, or else liquidity in the spot market could suffer, industry participants say
Global inconsistency remains a challenge for would-be Sefs
An ongoing lack of clarity and the potential for extraterritoriality in swap execution facility rules is creating a bumpy ride towards registration, according to three putative Sefs
Banks are retreating from market-making, managers warn
Forex investment has became more challenging, as market-making banks facing new regulation have become less willing to take risk, say buy-side firms
Basel guidance on settlement risk delayed until June
Updated guidance on foreign exchange settlement risk from the Basel Committee and CPSS was originally expected by the end of 2011, but now has an expanded remit
FX swap cost could rise from €279 to €2,779 under EU tax, warns Oliver Wyman
Research published today on behalf of the GFMA global foreign exchange division highlights the potentially punitive impact of the financial transaction tax on the forex industry
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
Emerging markets focus to boost NDFs despite clearing costs
Growth of non-deliverable forwards market will not be hit by impending clearing laws
New proposals could take the sting out of Sefs, say industry experts
The appearance of the Sef Clarification Act last month, coupled with a changing mood in Washington, DC, has given rise to a more positive outlook among e-commerce experts
Japan’s new leverage limit will hurt carry trade, says Glenn Stevens
Japan FSA's 25:1 leverage limit implemented on August 1 could kill the popularity of the carry trade for retail investors, says Gain Capital's chief executive
Australian regulators suggest clearing exemption for foreign exchange
Reserve Bank of Australia discussion paper commits to harmonising rules with US and Europe
Exemption clarity allows market participants to prepare for new regime
Banks, market infrastructures and industry associations prepare to move forward with regulatory preparation, now that fx swaps and forwards are set to be exempt
Isda raises concerns over Russian netting laws
Despite the challenges involved, banks and brokers are excited by the progress being made to open up the Russian market
EU Council leans towards special treatment for FX
Industry's concerns starting to be reflected in legislation proposals
CLS considers membership category for CCPs
"Allowing CCPs to settle FX trades bilaterally would reintroduce Herstatt risk, so it would certainly be preferable to have CCPs become either direct or third-party members of CLS," says LCH.Clearnet executive
European Parliament has neglected FX exemption question, says UK MEP
Kay Swinburne criticises colleagues in the European Parliament for failing to tackle the question of whether forex contracts need to be subjected to new clearing and reporting requirements
HMT's Hoban: Beware of sweeping forex into EU derivatives reform
Advocates of an exemption from mandatory central clearing requirements for foreign exchange swaps and forwards have won the support of the UK government, as a senior treasury official admits to the risks inherent in regulating FX in the same way as other…