News/Risk management/Foreign exchange
Australia probes AUD spike prior to rates decision
Australia's authorities look into sudden moves in the Aussie's value
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
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 Week Asia: Corporate hedgers rattled by volatility
Tumultuous foreign exchange market in September has left some hedging strategies in disarray and led to more timely exposure monitoring in one treasury department, say corporate treasurers speaking at FX Week Asia
China and HK central banks close to finalising new CNH clearing arrangement
Market participants are close to completing the legal and operational details relating to a new custodian account arrangement that would allow the city's participating banks in offshore renminbi to take credit risk against the People's Bank of China…
Yen will strengthen as it did after Kobe, say currency strategists
The earthquake and tsunami that struck Japan on March 11 will not force a weakening of the yen, according to currency strategists focused on the region.
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
DBS to debut CNH structured notes in Singapore; close-out settlement backstop in place to deal with China policy u-turn
DBS is set to become the first financial institution to offer renminbi structured notes and unit trust to private banking clients in Singapore on February 28. The bank has also drawn up contingency plans to address the policy risk of Beijing changing its…
CLS committed to settlement risk mitigation under new regulations
68% of respondents to FX Week online poll believe CLS should be central clearer for FX products, but CLS insists it remains focused on mitigating settlement risk
Estonia upgraded on euro accession; Ireland knocked down on banks’ weakness
Fitch lifts Estonian credit rating two notches, citing benefits of eurozone membership and strong fiscal performance; Moody’s downgrades Ireland on poor growth projections, worries over bad bank
Eurozone has two years to agree fiscal union, says DB Advisors
The viability of the Eurozone project continues to weigh on fixed income market, says chief investment officer of DB Advisors.
Russia targets CLS inclusion by 2015
Settlement risk in Russia's ruble is preventing the currency realising its global ambitions
Bonuses fail to match expectations
Bonus speculation is now over as the banks pay out, with the exception of Royal Bank of Scotland, which will not pay bonuses until June.
Banks step forward at second CFTC hearing
Investment bank structures came under fire today at a Commodity Futures Trading Commission (CFTC) hearing called to examine position limits and hedge exemptions in the energy sector.
Industry still failing on risk management, surveys find
Two years after the start of the credit crisis, many financial institutions are still without adequate risk management, according to two recent surveys.
Spanish rules cushioned banks from the crisis, says top regulator
In an exclusive interview with Risk , José María Roldán, director-general of banking regulation at the Banco de España, explains how a unique regulatory framework has led Spanish banks to adopt prudent trading and risk management processes that paid off…