Articles by Farah Khalique
Political crisis in Europe brings volatility back to forex options
Volatility returned to eurodollar last week, as forex traders priced further downside risk into euro options
Eurozone deal brings relief in forex spot and options
Risk sentiment appeared to make a comeback in forex markets yesterday, as options volatility fell from record highs and the euro rallied in response to the deal announced after the Euro Summit in Brussels
Clearing of Chilean NDFs hampered by netting uncertainty
The Central Bank of Chile has the authority to stop financial institutions netting down their transactions, which participants fear might prevent central counterparties from being able to clear contracts denominated in the Chilean peso
Eurozone crisis boosts September spot volumes
Falling confidence in the eurozone and the flight to and from commodities-based currencies has resulted in record volumes, platforms report
LCH.Clearnet eyes November launch for NDF clearing
London-based CCP is set to launch clearing for NDFs in six currencies in mid-November, having shelved plans for options clearing while banks discuss settlement-related issues with regulators
Prepare for further black swan events in FX, corporates told
Corporate treasurers should make sure their forex counterparties are properly prepared for the possibility of further black swan events in the foreign exchange markets, senior Lloyds banker tells ACT conference delegates in Manchester
Central banks take aim at dollar-funding shortage
Co-ordinated action from five central banks eases the pressure on dollar funding for European banks, but euro/dollar cross-currency basis swap market remains under stress
Long Swiss franc players hit by SNB move
Sudden depreciation of the Swiss franc, following an SNB announcement last Tuesday that it would buy unlimited amounts of foreign currency, has left some participants nursing hefty losses
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
Options traders braced for further SNB intervention
Demand has switched from downside euro/Swiss franc options to upside options in anticipation of further Swiss franc weakening measures from SNB, say senior options traders
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
FX Week USA: Niche services rather than volume set to dominate FX
Conference speakers discuss the changing nature of the foreign exchange market, and agree successful providers in future are likely to be those that can offer a range of niche services rather than those with the highest volumes
European Parliament rejects Swinburne’s forex exemption
Crucial plenary vote on Emir on July 5 retains suggested amendments to recognise unique nature of FX derivatives, but strips out explicit calls for an exemption
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
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
Deutsche and Barclays sweep into CNH derivatives
Banks both now offer offshore renminbi trading in spot, forwards and swaps on their FX platforms after new launches over the past fortnight
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 questions Esma’s power to determine clearing eligibility
Legal precedent suggests European Commission might have to determine which contracts should be cleared under new derivatives rules, rather than Esma as originally planned
LCH.Clearnet confirms FX options clearing for 2011
Annual results confirm significant investment in developing clearing services for FX options
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
London retains premier spot in FX, according to global volume figures
London remained the biggest financial centre for foreign exchange in 2010 according to semi-annual volume figures published in the UK and US on January 31, despite speculation it might be overtaken as a result of the UK government’s clampdown on bonuses.
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…
EC: Prepare for FX clearing in US and EU
European Commission's Patrick Pearson says no member state has advocated an outright exemption for foreign exchange clearing