Currency forward
CME plans to clear all FX products, despite probable exemption
Swaps and forwards will be part of the exchange group's FX clearing initiative as banks will need to clear them if used to hedge an option
FX derivatives volume grew by 9% in H2 2010, says BIS
Total notional OTC volume across asset classes rose by 3%, having contracted by 4% in the first half of the year
Duffie paper sparks debate over credit risk in FX swaps and forwards
Market participants respond to calls from academic Darrell Duffie for more analysis before finalising exemption of FX swaps and forwards from clearing requirements
Basel III already raising costs for long-dated FX, argue corporates
Panellists at ACT annual conference express concerns about the knock-on effects of Basel III and OTC clearing rules
Industry hails US Treasury exemption for FX swaps and forwards
FX exemption clarity in the US puts pressure on Europe to take a similar position, argue senior industry officials
Spotlight on: Joe Norena and Jacqueline Liau, HSBC
Joe Norena, chief operating officer for FX and metals at HSBC, and Jacqueline Liau, global head of product and services for FX Prime, talk to Farah Khalique about the bank’s plans to offer clearing services for FX products
EU Council disputes Esma’s power to determine clearing eligibility
Legal precedent suggests European Commission might have to determine which contracts should be cleared under new derivatives rules, rather than Esma as originally planned
Crédit Agricole to launch two-year forwards by Q2
Crédit Agricole Corporate & Investment Banking will launch two-year outright forwards on its Jetstream platform by the end of March, according to Vincent Leclercq, global head of foreign exchange and commodities at the bank in London.
European Parliament and Council on collision course over FX exemption
The top European Union institutions in Brussels have found themselves at odds over the crucial question of whether foreign exchange contracts should be subject to new rules for mandatory clearing and reporting of over-the-counter derivatives in the…
HMT's Hoban: Beware of sweeping forex into EU derivatives reform
Advocates of an exemption from mandatory central clearing requirements for foreign exchange swaps and forwards have won the support of the UK government, as a senior treasury official admits to the risks inherent in regulating FX in the same way as other…
Eight pilot SurfaceExchange FX derivatives platform
SurfaceExchange is piloting its anonymous FX derivatives trading platform with eight traders and plans to go live at the end of the first quarter.
Bayer warns EC: Don’t force us to slash jobs in EU
Christian Held, head of corporate treasury at pharmaceutical giant Bayer, threatened to move jobs abroad unless the European Commission “lets common sense prevail” over FX derivatives regulation.
EC: Prepare for FX clearing in US and EU
Senior figures from the European Commission (EC) and European Parliament signalled that an outright clearing exemption for forex was unlikely, at an Association for Financial Markets in Europe conference in Brussels held on January 12.
Citi FX survey: Crisis prompts companies to alter counterparties, risk management approach
A Citigroup foreign exchange survey revealed that, as a result of the financial crisis, many companies have adjusted their mix of counterparties, increased their use of options relative to forwards and changed their approach to credit risk management.
South Korean regulators caution Barclays and JP Morgan on currency derivatives sales
South Korean financial regulator has issued an institutional warning to Barclays and a caution to an individual at JP Morgan for breaking local banking rules by selling inappropriate currency derivatives that are used in exporter hedging programmes
HKEx to launch NDF clearing facility by 2012-end
Hong Kong Exchange and Clearing (HKEx) plans to launch a central clearing facility for the local over-the-counter market, beginning with interest rate derivatives and non-deliverable forwards, by 2012-end.
Corporates assess their hedging options
Ben Nicklin, FX structurer at Royal Bank of Scotland in London, looks at the rise of option-owning corporate hedging strategies
A call for closure
Indications of the multiplicity of challenges that central clearing will introduce to the forex markets came thick and fast at the FX Week Europe congress in London last Tuesday (November 16).
Tullett Prebon emerges as FX broker powerhouse
Tullett Prebon has eclipsed the competition in the best broker category, coming first in currency options, emerging markets and forwards FX.
CCP costs keep creeping up
While US regulators consult the industry over the exemption of foreign exchange products, the systemic risks and increasing costs of using central counterparty (CCP) clearers continue to be highlighted.
Basel Committee considers capital charges on bank exposures to CCP default funds
A new capital charge on bank exposures to CCP default funds could be introduced in December, says Osfi's White.
EC likely to follow a US clearing exemption for FX swaps and forwards
The European Commission (EC) is likely to exempt foreign exchange swaps and forwards from a mandatory clearing requirement if the US decides to do so, according to Patrick Pearson, head of the financial markets infrastructure unit at the EC.
HSBC FXPB preps Asia push
HONG KONG - HSBC plans to extend FX prime services to the Asian markets as it looks to take advantage of rising demand for prime brokerage in the region.
FX - After the trade is made: the future of the CLS relationship
How will CLS fare as new regulations take hold? Olaf Ransome, director at forex operations consultancy, 3C Advisory in Zurich examines the future for the FX infrastructure