Foreign exchange
HKMA's Genberg dismisses 'decoupling' theory
The idea that increasing inter-regional trade in Asia could offset the impact of the recessions in the US and Europe - the so-called 'decoupling' theory - is ill-founded, said Hans Genberg, executive director of Hong Kong Monetary Authority (HKMA)…
Dinallo backtracks on regulating CDSs
New York State insurance superintendent Eric Dinallo shelved plans to bring a large slice of the credit default swap (CDS) market under the purview of the New York State Insurance Department (NYSID) during a US congressional committee hearing on November…
Demand wanes for central bank liquidity schemes
The appetite among European and US banks to access liquidity schemes provided by central banks has reduced dramatically, according to the latest figures.
Basel Committee outlines supervision strategy
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S&P: AAA RMBS writedowns will be minimal
AAA rated tranches of US subprime residential mortgage-backed securities (RMBS) will be written down by less than 1%, despite heavy losses on the underlying mortgages, rating agency Standard & Poor's predicts.
Contenders queue up for Tarp funds
An increasing number of organisations are applying for the $250 billion Capital Purchase Program (CPP), part of the US government's $700 billion Troubled Asset Relief Program (Tarp).
Ambac to commute $3.5 billion in CDO exposure
Ambac Financial announced on Wednesday that it has arranged a deal with counterparties to close out exposure to four collateralised debt obligations (CDOs) with a cash settlement of $1 billion.
Wellink: Banking should be 'shock absorber' for financial system
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G-20 principles spell increased financial regulation
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BNP launches carry trade alternative
BNP Paribas has launched two new FX indexes, Galaxy Alpha and Alpha plus, which aim to offer an alternative to traditional carry trade strategies, which have underperformed over the past year given extreme volatility in FX and interest rate markets.
Executive pay reviewed at Barclays, UBS and Goldman
Barclays, UBS and Goldman Sachs have announced moves to halt bonus payouts for top executives in 2008, as huge subprime losses and writedowns have placed compensation policies under increased scrutiny.
Forex specialists predict consolidation
Foreign exchange markets will experience further consolidation in 2009, while larger banks will continue to dominate algorithmic trading, according to a panel of industry experts speaking at the FX Week Europe conference in London yesterday.
Forex experts: no need for central clearing house
The foreign exchange markets are unlikely to follow the credit default swaps (CDS) market by establishing central counterparties in the near future.
MAS review of structured products may lead to regulatory changes
The Monetary Authority of Singapore (MAS) may make changes to regulation governing the structured products industry it emerged yesterday during the country's parliamentary sitting. The MAS is undertaking a review of the regulatory regime for the…
CAAM opens subsidiary in Malaysia
Crédit Agricole Asset Management (CAAM) has opened a subsidiary in Malaysia, which was established as a foreign fund management company. CAAM Malaysia holds a Capital Markets and Services License allowing it to carry out fund management in the country.
Korean banks to share info on FX derivatives
South Korea's markets regulator, in conjunction with the country's leading banking association, has set up a database that allows banks to share information on the use of financial products by their clients, including exporters.
FX volumes 'set to drop in 2009'
Volumes traded in the foreign exchange markets are likely to drop next year as hedge funds and sovereign wealth funds reduce their activities, Paul Fisher, the Bank of England's head of foreign exchange and reserves management, predicted today.
HSBC terminates swaps in Lehman Bros minibonds
The Monetary Authority of Singapore (MAS) says HSBC Institutional Trust Services, the trustee of Lehman Brothers' defaulted minibond notes programme, has terminated the swaps that back series 1 to 8 of the programme, to remove the risk of credit events…
Db x-trackers delivers commodity ETF
Db x-trackers, the exchange-traded fund arm of Deutsche Bank, has launched its commodity ETF on the London Stock Exchange (LSE) tracking the Deutsche Bank Liquid Commodity Index - Optimum Yield (DBLCI OY Balanced). The db x-trackers DBLCI OY Balanced ETF…
CDS clearing house to miss November 30 deadline
The November 30 target for central clearing of index credit default swap (CDS) trades set by a consortium of industry associations and investment banks is unlikely to be met, sources within the Federal Reserve Bank of New York have said.
Paulson: buying MBSs no longer Tarp priority
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Brazilian equity reverse convertible coupons soar
Annualised coupons offered on three-month reverse convertibles linked to Brazilian blue-chip stocks have soared over the past few months because of the extreme equity volatility environment. A reverse convertible priced in January last year on Vale do…
Freddie Mac posts heavy losses in Q3
Battered by the ailing residential real estate market, Freddie Mac reported a $25.3 billion loss in the third quarter of 2008 and requested a $13.8 billion capital injection from the US Treasury.
Citic Pacific parent company assumes currency losses
Mining and manufacturing company Citic Pacific in Hong Kong has reached an agreement with parent company, Citic Group, to provide critical financial support to meet liabilities from the exposure to leveraged FX contracts disclosed on October 20. (…