Derivatives
A time for special FX
Dealers are beginning to think a lot more seriously about credit-adjusting the prices they quote on foreign exchange derivatives. How are they calculating this, and how are clients responding to the move? By John Ferry
Forex forwards bounce back as year ends
LONDON - Efforts by global central banks to boost interbank trading are reaping returns, with short-dated foreign exchange forwards basis falling sharply last week. But longer-dated tenors remain a concern, say traders.
Counterparty risk is driving industry change
The question of counterparty risk is leading to some significant changes in the foreign exchange business, chiefly in introducing innovative ways to manage this risk.
Capital controls hamper króna's comeback
REYKJAVIK - Iceland re-floated its currency last week but existing capital controls continue to drive away interest in króna trading.
Yuan NDFs set to peak
BEIJING - Chinese renminbi non-deliverable forward (NDF) rates could peak this week, ending the rapid rise seen since the government indicated plans to allow the unit to depreciate at the end of November, according to traders .
'Veneer of homogeneity' hides cross-asset minefield
LONDON - Cross-asset electronic trading is still underdeveloped, according to Jeremy Smart, global head of electronic foreign exchange sales at Morgan Stanley.
Strike while the iron is hot
Pete Luxton, economic adviser, and Shant Movsesian, manager, foreign exchange options, at Informa Global Markets in London suggest a basket strategy to play euro weakness
ETP boom fuels concern over counterparty risk
GLOBAL - Issuance of currency-linked exchange-traded products (ETPs) has soared in the past year, but concerns are emerging over the counterparty risks inherent in these products.
RBS launches new forex index
LONDON - RBS launched FX Radar Index, an automated index linked to 20 emerging market currencies, on October 1.
Icap's NDFs trading down but not out
SINGAPORE - Current market volatility is hurting non-deliverable forwards (NDF) trading on Icap's electronic spot-broking system EBS, but the broker is optimistic about the development of this market.
NAB grows structured products in Asia
SINGAPORE - National Australia Bank's investment bank, nabCapital, has hired Peter Zeitsch as a director to build a structured products business in Singapore.
Barings launches new currency fund
LONDON - Baring Asset Management is set to launch a currency fund that will offer an alternative source of alpha and diversification to target institutional investors and funds of hedge funds.
StanChart outlines forex e-pricing and trading strategy
LONDON - Standard Chartered has provided further details about its e-forex pricing and trading strategy since promoting Todd McDonald to a newly created position as global head of foreign exchange electronic pricing and trading ( FX Week August 4).
BarCap shakes up Asian forex management
SINGAPORE - Steve Weller, Barclays Capital's Singapore-based Asia-Pacific head of foreign exchange since 2004, has taken a sabbatical, leaving his responsibilities split among new and veteran members of the regional forex team.
Korea relaxes won NDF rules
SEOUL - Plans by South Korean officials to ease restrictions on won non-deliverable forwards (NDF) trading could shift speculative trading onshore, say traders.
Another good quarter for FX
BOSTON & NEW YORK - US dealers posted record second-quarter revenues from foreign exchange business, as volatility remained high over the period.