If global regulators drew up a hit list of the biggest risks in foreign exchange, settlement risk would be at the top. So, it’s positive that the Bank for International Settlements in its follow-up report to the 2025 triennial survey declared a 90% overall reduction in average daily settlement risk. But wait. Look closer at […]
The European Union pioneered crypto regulation with its Markets in Crypto Assets Regulation (Mica), but it has fallen behind the US in crypto derivatives, where new products and instruments are winning rapid adoption, according to market participants. The divergence is increasingly shaping where crypto derivatives liquidity forms – and on whose regulatory terms. “What we
US capital proposals would entail a whopping 96% rise in derivatives counterparty risk charges. But while this potential doubling has struck fear into some in the industry, others believe it’s no big deal. Sources argue banks could slash the capital hit by tweaking hedges to align with the new regulatory view of exposures. There are
The future of a high-profile foreign exchange “cartel” case against six global banks is in doubt after the UK Supreme Court found that the class action cannot proceed on an opt-out basis. The case, which is valued at £2.7 billion ($3.61 billion) and was brought by Phillip Evans – a former chair of the UK’s
Korea’s leveraged ETF expansion aims to stem overseas outflows – FX Markets Skip to main content End of drawer navigation content Retail flows to US and Hong Kong listings may have exacerbated FX fragility Leveraged exchange-traded funds on single-name stocks are set to begin trading in South Korea next month, part of a plan by
The latest US Basel III endgame proposal released on March 19 was widely seen as a victory for banks. For the International Swaps and Derivatives Association, it was a vindication of its own brand of low-key, highbrow advocacy. An earlier proposal in July 2023 would have raised capital requirements for big banks by as much as
US policies eroding dollar’s position, say Knot and Obstfeld – FX Markets Skip to main content End of drawer navigation content Euro and renminbi unlikely to supplant greenback, but “more multipolar” system could arise Klaas Knot The policies of the current US administration are putting pressure on the dollar’s status as a global currency, Klaas
Indian banks are scrambling to unwind arbitrage trades between rupee non-deliverable forwards (NDFs) and onshore markets, as the deadline for meeting new onshore end-of-day position limits set by the Reserve Bank of India fast approaches. The RBI has given banks until April 10 to comply with a $100 million cap on net open positions in
PBoC reserve ratio cut spurs short-term FX hedging – FX Markets Skip to main content End of drawer navigation content Removal of 20% forex risk rule drives exporters toward options and onshore forwards The People’s Bank of China’s decision to scrap its 20% foreign exchange risk reserve requirement has triggered a pick-up in short-term hedging
China acts to slow yuan gains by scrapping FX forward hedge cost – FX Markets Skip to main content End of drawer navigation content PBoC to remove 20% reserve ratio as it aims for ‘reasonable and balanced’ renminbi The People’s Bank of China is to scrap its reserve ratio for foreign exchange forwards sales in
Three characters are causing a crisis of confidence among back-office staff at UK and European banks, brokers and investment firms: T+1. After laying out a roadmap for next year’s switch to one-working-day trade settlement, regulators and industry execs are haggling over the finer details, and companies are under notice to put their plans in place.
Will lifer exodus kill Taiwan’s NDF market? – FX Markets Skip to main content End of drawer navigation content Traders split over whether insurers’ retreat from FX hedging is help or hindrance The Taiwan dollar non-deliverable forward (NDF) market is the second largest in the world. But dig beneath the surface and the market has
XTX alleges Currenex entered own trades ahead of users – FX Markets Skip to main content End of drawer navigation content Market-maker claims venue used triangular arb tool to trade before users XTX Markets has demanded Currenex disclose details of a tool it claims allowed the venue to execute its own triangular arbitrage trades ahead
Spot crypto should begin trading on at least one of the designated contract markets regulated by the US Commodity Futures Trading Commission (CFTC) by year-end, according to acting chair Caroline Pham. “It’s a crypto sprint,” she said. “I’m very serious about that, so we are moving quickly.” Pham, speaking to the annual meeting of the
The overturning of Mark Johnson’s fraud conviction in July could indicate that dealers do not owe fiduciary duties to their counterparties when pre-hedging large transactions, according to lawyers. Johnson, former head of foreign exchange cash trading at HSBC, was accused of wire fraud involving Scottish energy company Cairn over a $3.5 billion dollar/sterling transaction. In
Former ECB Supervisory Board member speaks about Covid-19 and Credit Suisse shocks, regulation debates, the rise of non-banks and what makes tech projects succeed Source link
Crackdown on FX vendors could raise costs for dealers – FX Markets Skip to main content End of drawer navigation content MTF designation could cost aggregators and EMSs $3m to set up and $1m in annual maintenance Vendors that must register as multilateral trading facilities (MTFs) may end up passing increased regulatory costs on to
