Foreign exchange
Asia Risk 15: Exchanges have profited from derivatives but face new threats
Asian exchanges have undergone a radical transformation during the past decade as systems were overhauled, new derivatives instruments traded and new ventures formed. Yet perhaps their biggest challenge awaits them. Jill Wong reports
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…
Citi hires Margolis from Goldman Sachs
Latest hire in a series of senior appointments to the firm's FX business
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
Enforce clearing, catapult FX into the big league, say FX Week USA panellists
Foreign exchange is held back from fulfilling its potential as an asset class because of counterparty risk issues, said panellists.
RBC: Japanese limits on margin trading will weigh on Aussie/yen cross in August
Japanese plans to limit leverage on margin trading to a maximum of 50 times collateral in August could affect Australian dollar/yen cross rates.
Insurers reappraise forex risk
Increasing currency volatility has prompted a reappraisal of insurers’ foreign exchange hedging approach – a phenomenon that will be accelerated, particularly in the Nordic regions, with the advent of Solvency II. Laurie Carver reports
Governors gloomy on outlook for pan-African currency
South African, Nigerian and Ghanaian central bank governors say path to regional and continent-wide single currency littered with obstacles; single currency will not correct underlying problems
Dodd-Frank: forex swap clearing exemption at Treasury secretary’s discretion
Blanket forex exemption dropped from final bill; Treasury to determine issue
Asian traders lukewarm to renminbi despite US dollar-depeg
Asian exporters and importers are waiting to see more investment and hedging instruments for offshore renminbi before adopting the currency for trading
China and the renminbi: A Risk.net article collection
The recent financial crisis in the west has presented China with a range of challenges as well as opportunities.
Market prepares for rising RMB
Swap rates and NDFs show traders expect the Chinese currency to rise after the weekend saw the end of its dollar peg
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.
Korea moves to restrict FX derivatives leverage
Bank of Korea and Ministry of Strategy and Finance cut back leverage caps and limit corporate hedging of currency risks to 100% from 125% of exposure
FX volatility creates headaches for bond investors
Investors shift allocations to US dollar products as euro sinks.
Brough: Europe could ultimately benefit from euro collapse
Schroders’ Andy Brough believes an eventual collapse of the euro would not be the Doomsday event many fear and could be the best scenario for many nations on the Continent.
Russia targets CLS inclusion by 2015
Settlement risk in Russia's ruble is preventing the currency realising its global ambitions
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…
Beware the ‘small print’ in transitions, says Moore at Russell Investments
Transition managers can fall through the cracks in regulation, says investment consultant’s Asia-Pacific chief
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.