News/Foreign exchange
ACI to develop new spot FX standards
Industry association plans to complete project by year-end to bring greater clarity to the definition of spot FX across currencies and geographies
Launch of renminbi clearing in Singapore could spur RMB commodity derivative market
Infrastructure to clear RMB trades in Singapore is now live
Thai sovereign entities to hedge out legacy yen exposures as baht strengthens
Recent mark-to-market gains on legacy yen-denominated loans make now a tempting time to hedge, according to Thai market players
Buy side struggling to pick forex platforms
Consolidation will shrink the number of competing platforms, but it is too early to pick winners, say panellists at FX Invest North America
MAS warns on fragmented clearing and reporting
Asian financial markets have made progress in setting up CCPs and trade repositories, but greater harmonisation is needed across borders, Singaporean regulator warns
Singapore eyes regional hub status for offshore RMB
Addressing ACI Congress delegates, deputy prime minister and chairman of the Monetary Authority of Singapore talks up Singapore's ability to facilitate the growth of renminbi trading outside China
Euro's future unaffected by turmoil in Italy, say panellists
The results of Italy's election may have created uncertainty, but the eurozone's future remains intact, according to speakers at the FX Invest Europe conference
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
Yen threatened by Japan insurers unwinding dollar/yen hedging positions
While foreign hedge funds have been driving down the value of the yen, now Japan insurers may strengthen the trend
CME launches three-year CNH futures contract to meet dim sum bond hedging demand
CME to offer CNH futures from February 25; becomes second provider after HKEx launched CNH futures contract last September
Philippine central bank NDF curbs won’t stop peso appreciation
Attempts by the Philippine central bank to curb increases in the value of the local currency won't work, according to market observers
Opening up of China market will not deplete Hong Kong RMB liquidity
The renminbi deposit base in Hong Kong banks will not face depletion even as investors have more ways of remitting the currency back to mainland China, say speakers at the Asian Financial Forum
Free trade in Taiwan needed to prevent emergence of multiple offshore RMB curves
The creation of an offshore RMB market in Taiwan could result in a fracturing of liquidity and prevent the currency's further internationalisation
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
Foreign commodity exporters to China seek RMB settlement after US fiscal cliff fears
Foreign commodity firms operating in China are settling via RMB in order to circumvent a potential weakening of the dollar
Banks suspend dual-currency deposits in Japan
Returns on dual-currency and structured deposits will not be covered by state insurance scheme, Japanese FSA decides
RMB/Africa currency hedging sees ‘substantial’ growth in past 12 months
Increasing levels of trade between Africa and China have driven the emergence of an increasingly active RMB derivatives market
Hong Kong insurers hedge out their US dollar exposure
Insurers in Hong Kong are revising their long-term policy of not hedging out their US dollar exposures
China to widen RMB trading band again before end-2012
A speaker at FX Week Asia argued that further liberalisation of the RMB was on the cards in the near future
Concerns raised over Basel settlement risk guidance as consultation closes
The revised guidance on managing settlement risk could distort the forex market if implemented inconsistently, but should ultimately lead to greater use of CLS, say market participants
GFI extends ForexMatch into Asian and African currencies
The interdealer broker is expanding the footprint of its forex derivatives platform by adding Asian and African currency pairs
Banks struggle to build FX as liquidity slows
Falling levels of forex activity, particularly among institutional clients, have made it difficult for banks – particularly the newer entrants – to beef up their forex businesses,