Regulation
Tax reforms 'could deter corporate hedging'
LONDON -- The UK government's proposals to align corporations' tax more closely with financial accounts could create yet another deterrent for corporate hedging, the Association of Corporate Treasurers (ACT) has warned.
Options use soars, says BIS
BASEL -- FX options business increased by 34% year-on-year in H1, according to Bank for International Settlements statistics released last week.
Central banks need to clarify FX intervention
TOKYO -- Central banks should be encouraged to disclose information on their motives for intervening in foreign exchange markets, according to Priscilla Chiu from the London office of the Hong Kong Monetary Authority (HKMA). In a Bank for International…
New era dawns for FX data
NEW YORK -- A new era in FX data is on its way, as the continuous-linked settlement service (CLS) for forex prepares to sell its market data back to users early next year.
UK senior managers face new rules on conflict of interest
LONDON -- Senior managers in the UK will from next year be responsible for ensuring their currency research does not contravene strict new rules on conflict of interest, regulatory body the Financial Services Authority (FSA) said last week.
US merger brings uncertain future for BoA/Fleet staff
CHARLOTTE -- Bank of America’s (BoA) $47 billion purchase of FleetBoston Financial should bolster its regional US coverage in FX. But overlap in jobs is unavoidable with a bank the size of BoA, said analysts, and the outlook is uncertain for staff at…
Trichet unlikely to ring changes
FRANKFURT -- There are unlikely to be any major policy changes at the European Central Bank (ECB) following Jean-Claude Trichet’s introduction as president last week.
US merger brings uncertain future for BoA/Fleet staff
CHARLOTTE -- Bank of America’s (BoA) $47 billion purchase of FleetBoston Financial should bolster its regional US coverage in FX. But overlap in jobs is unavoidable with a bank the size of BoA, said analysts, and the outlook is uncertain for staff at…
GFI buys exotic options model
LONDON -- Inter-dealer broker and market data firm GFI Group has bought options pricing model dVega, and integrated it with the latest release of its flagship options pricing tool Fenics FX, GFI will announce today (October 27).
Euro needs more stability
BRUSSELS -- The EU Commission needs to solve the issues surrounding the EU stability pact for Eurozone countries before any new countries join either the currency or the European Union, analysts said last week. The consequences of allowing France and…
China export tax changes will not satisfy US, Japan and EU
BEIJING -- The Chinese government plans to cut tax rebates for exporters in a bid to reduce international pressure for yuan revaluation, local media in Hong Kong and mainland China reported last week. However, market participants in Asia-Pacific said the…
Funds fall for third month
STAMFORD -- Currency managers struggled to generate returns in August for the third consecutive month, according to the Parker Global Strategies’ FX Index, which was down 0.45% for the month. Of the minority of funds that showed a profit for the month,…
Pressure on funds’ currency management set to intensify
LONDON -- An inquiry into the failure of a prominent insurer's staff to hedge risks will bring increased pressure on pension funds to address their currency strategy.
FSA warns of treasury management flaws
LONDON -- The Financial Services Authority, the UK regulatory body, has highlighted key areas of weakness in UK treasury management following a survey of banks and building societies.
NFA suspends California FX firm
CHICAGO -- Regulatory body National Futures Association (NFA) suspended California-based futures commission merchant FX First, effective September 26.
Philippines SEC drafts FX reporting guidelines
PHILIPPINES -- The Philippines’ Securities and Exchange Commission (SEC) last week announced draft guidelines on the preparation of foreign currency-denominated financial statements for corporations in the country.
Portals see record FX volumes
LONDON -- Heightened volatility last Tuesday (September 30) created one of the busiest days in years for FX trading, senior officials told FX Week . Electronic portals proved their worth, with many managing record spot volumes.
IASB favours banks, says Treasury Association Group
LUXEMBOURG -- The International Accounting Standards Board (IASB) is favouring the demands of banks and insurance companies over the interests of corporations, the International Group of Treasury Associations (IGTA) said last week.
Italians step up FX use
ROME -- Italian corporates have increased their derivatives use over the past 12 months as companies have honed their risk management skills to battle against currency volatility.
PHLX set to launch cash-settled futures contracts
PHILADELPHIA -- The Philadelphia Stock Exchange (PHLX) will launch cash-settled FX futures contracts next month, subject to CFTC approval, a senior PHLX official told FX Week .
Options software boosts exotics appetite
LONDON -- The use of independent FX options pricing software by corporates may have narrowed banks’ margins, but it has given a substantial boost to the exotics market, banks told FX Week .
All eyes on the Middle East
Growing interest in Islamic banking, new technological developments and a wave of freshly repatriated money have put forex trading in the Middle East on the cusp of an exciting new era, reports Nikki Marmery
BoJ still to intervene despite August respite
TOKYO – Analysts expect further intervention in the currency markets from the Bank of Japan (BoJ) in September, following reports that the central bank had already sold yen at the end of last week.
CLS to include Korean won
NEW YORK -- CLS Bank, which operates the continuous-linked settlement service for FX, will today announce its plans to include the Korean won as a CLS-eligible currency.