Trading
International Assets buys Global Currencies
FLORIDA – International Assets Holding Corporation (Intl), an emerging market-focused financial services company, last week (July 7) purchased the FX operations of UK-based Global Currencies for $2.4 million. The payment comprised $1 million cash plus…
Rivals gear up for FX clearing
LONDON – The stage is set for a central counterparty clearing (CCP) system for FX as two potential providers moved their plans forward last week.
Hedge and gain during euro/dollar volatility
A six-month ‘volatile forward’ can help a firm hedge safely while also benefiting from a choppy euro/dollar market, say Eric Ohayon, European head of FX structuring, and Chris Weiss, FX structurer at Bank of America in London
Korean CLS utility opts for PAYplus
The utility through which Korean banks will use the continuous linked settlement (CLS) service for FX, has selected vendor Fundtech’s PAYplus as its core application, it said last week.
AIG restaffs FX post-merger
LONDON – Banque AIG, a subsidiary of AIG Financial Products, has hired six sales and trading specialists in a bid to upgrade the FX component of its cross-product service.
Property pressures the pound
As UK property price growth slows, investors are moderating their view on the Bank of England tightening cycle. This could add to sterling weakness, says Adam Myers at SG CIB in London
Hotspot adds market makers
NEW JERSEY – Hotspot FXi has added six banks to its institutional trading marketplace to act as market makers and prime brokers. BNP Paribas, HSBC, HVB Group, Société Générale (SG) and WestLB are now all live on the platform providing streamed prices to…
Refco buys stake in ACM
GENEVA – US brokerage Refco Group bought a majority stake in online FX trading firm AC Markets (ACM) for an undisclosed sum last week. The cash purchase was completed on June 29.
Consistency offers rewards
Few forecasters have been successful at both one-month and three-month currency forecasting over the past three months, our Index reveals. Only Westpac (top three-month forecaster and 10th place one-month forecaster) and Bank of Nova Scotia (6th place…
ABN Amro signs half CCIL’s members for CLS
MUMBAI – More than half of the 60+ members of Indian forex settlement service the Clearing Corporation of India (CCIL) will use ABN Amro as their provider for continuous linked settlement (CLS), the Dutch bank said last week.
Dollar set to depreciate
Net capital inflows will exceed the US current account deficit over the next year, prompting dollar depreciation to begin again, says Jay Bryson, economics analyst at Wachovia Bank in Charlotte, North Carolina
"What is risk management?" ask Risk USA speakers
BOSTON – The way banks and other financial institutions think about – and sometimes misinterpret – risk management formed the main theme of the opening keynote speeches at FX Week sister publication Risk 's USA conference held last week.
Merrill gets FX licence in South Korea
SEOUL – Merrill Lynch has become the first foreign investment bank to receive an FX licence from the South Korean financial services regulatory body, the Financial Supervisory Commission.
Merrill boss adds ex-colleagues
NEW YORK – Merrill Lynch's new global FX chief, Stephen Kemp, has hired three former colleagues from Morgan Stanley, the bank he left last April in order to join Merrill.
HSBC reverses its fortunes
HSBC, which last month was languishing near the bottom of the FX Week Currency Forecasts Index, is this week the top one-month forecaster. The bank's aggregated majors forecasts, submitted May 21 and tested against spot on June 21, were out by just over…
How to make yen gains amid intervention fears
A currency overlay manager may wish to take advantage of fresh yen strength without being exposed to the impact of renewed intervention. Simon Derrick, head of Bank of New York's currency strategy team, describes a simple, low-cost way to express this…
Tax bill to bring the dollars home
NEW YORK – A new tax bill in the US that is likely to herald a massive repatriation of funds into the country could spell a 5%–10% hike for the dollar, according to one scenario model from Dutch bank ABN Amro.
Boosting dollar returns during euro strength
To boost returns on a US dollar deposit in a bullish euro environment, a European exporter would be wise to consider an FX tarn with conversion, says Christophe Bouculat, senior FX structurer at Calyon in Paris
Year of plenty for top 30 banks
Little evidence of mid-tier contraction as revenue ranking hits new high
Micex expands forex coverage
MOSCOW – The Moscow Interbank Currency Exchange (Micex) has launched new FX contracts in a step towards expanding the exchange-traded FX market in Russia.
Forex firm fined record $100m for fraud
NEW YORK – A US federal court ruled in favour of the Commodity Futures Trading Commission (CFTC) last week, as it found a foreign exchange futures firm liable for the illegal sale of futures contracts. The $100 million restitution and penalty charges…
Yen volatility returns in MoF absence
TOKYO – Traders in Japan are reporting a healthy return to yen volatility following the Japanese Ministry of Finance's (MoF) withdrawal from currency intervention in mid March.
Consensus forecasts win out
Consensus forecasts are commonly seen as a reliable indicator of future currency moves, and our Currency Forecasts Index proves this – to a degree.
Kiwi ripens against Aussie
The New Zealand dollar is rising against the Aussie in line with interest rate differentials. But potential growth in Australia may cap its gains, says Sue Trinh, currency strategist at the Bank of New Zealand in Wellington