Regulation
US brands Switzerland a ‘currency manipulator’
Treasury also accuses Vietnam of manipulating exchange rate to gain “unfair competitive advantage”
Liquidity, regulation and the FX Global Code – Non-bank FX in 2021 and beyond
As 2020 – a year that will undoubtedly remain etched in the memories of many for a long time to come – draws to a close, Richard Elston, group head of institutional at CMC Markets, explores the key themes he sees emerging across the non-bank FX community…
Vanguard signs FX Global Code
World’s second largest asset manager adopts code after seeing positive impact on market
Algo users seek apples-to-apples info
BIS study raised concerns; standards now a work in progress at GFXC
GFXC eyes standardised disclosure cover sheets
New docs planned to allow easier comparisons of algos and LP dealing terms
EC looks to GFXC on potential regulation of spot FX
GFXC to meet this week about revising global FX code, which may influence European legislator stance
Public policy lines blur: implications for reserve managers
Crisis-fighting has pushed central banks into new forms of risk-taking, which is impacting reserve managers
Joe Biden’s slow road to remaking US financial regulation
Moves on climate risk could come early; other changes may have to wait until end of 2021, or later
China derivatives appetite set to grow as PBoC lifts deposit rule
Central bank rule change could cut hedging costs by up to 100bp, traders say
Mifid best execution relief for buy side hangs by a thread
Largest grouping in European Parliament faces uphill battle to suspend RTS 28 reporting
UK’s FCA bans crypto derivatives for retail investors
FCA says retail crypto assets have no reliable valuation basis and could increase financial crime
AFM seeks ‘level playing field’ for venues and aggregators
Dutch regulator suggests some liquidity services should be classified as OTFs
Indonesia eyes netting changes to enable derivatives CCP
Central bank says legal amendments will pave way for locally cleared NDFs and interest rate swaps
Taiwan regulator open to more onshore insurer FX hedging
Central bank suggests lifers can use onshore swaps to hedge dividends, but some warn it could hit NDF market
Buy side hopes for best execution reporting carve-out
After EC exempts venues from best execution reporting, Aima argues funds' RTS 28 reports should follow
Lawyers divided on Johnson’s Supreme Court prospects
Ambiguity in wire fraud statutes may see court accept ex-HSBC trader’s appeal – but it’s a long shot, say attorneys
Johnson seeks US Supreme Court hearing
Ex-HSBC trader would not have been convicted in civil case, petition argues
Jittery ringgit spurs options growth in Malaysia
Local corporates seek new hedging tools, but longer-term options liquidity lacking
Spot FX shies away from regulatory yoke
As Europe weighs Aussie-style rules for spot trading, some see benefits – but many fear the burden
Turkey bans dealers from trading with BNP, Citi and UBS
Lira rallied after action, but respite for currency may be brief
Delay to IM calculation window leaves some exasperated
“Hasty” decision by global rule-makers frustrates firms that had already started initial margin prep
FSB outlines 10-point plan for stablecoin risks
Some powers already exist but stablecoins may cut across regulatory boundaries, report says
Applying Mifid to spot FX could backfire, warns MEP
EC would need to make "very compelling case" to draw spot market into wider regime, says Ferber
Covid-19 could spur central bank digital currencies – BIS
Fear could promote use of CBDCs but data is yet to point to whether cash demand has changed