Trading
Terrorism threatens Turkish lira
Turkey’s proximity to the worsening situation in Iraq is prompting an outflow of capital and sending the lira spiralling downwards, says Neil Mellor, FX strategist at Bank of New York in London
The one-year physically settled average rate forward
Capping and flooring a daily cable fixing rate offers a UK corporate with US dollar receivables an attractive risk/reward profile for zero premium, says Selene Chong, of HSBC’s FX structuring team in London
Bank One casualties emerge
LONDON – The first casualties from JP Morgan Chase’s upcoming purchase of Bank One – due to complete on July 5 – emerged last week with the news that both the Chicago-based bank’s FX heads in London are leaving.
Rocketing oil price dominates currencies
LONDON – The rocketing price of crude oil is continuing to dominate the currency markets, propping up the currencies of oil producers while hitting oil consumers hard.
ACI European Congress: exhibition preview
Delegates at the seventh ACI European Congress this week will have plenty to keep them busy, as vendors and banks line up a vast array of product demonstrations and promotions.
Hedge funds using more leverage, says Greenwich
Greenwich, CT – Almost a third of 36 hedge funds surveyed by research company Greenwich Associates increased their use of leverage in the past year.
Congress rise slows Indian rupee ascent
MUMBAI – The success of the Congress Party in the recent Indian elections sent tremors through the FX market last week, and may have a longer-term negative impact on the world’s largest emerging currency market.
CLS is 'changing the front-office'
LONDON – The continuous-linked settlement (CLS) service for FX trades has changed credit and trading practices among the majority of its users, reveals research from IT consultancy TowerGroup to be published this week.
China to stick with peg
While Chinese officials have hinted a yuan peg change may be imminent, Adrian Foster, FX strategist at Dresdner Kleinwort Wasserstein in Singapore sees change unlikely in 2004
Vendors gather for DWT
LONDON – FX and trading technology vendors are gathering in London this week for the tenth annual Dealing with Technology exhibition.
Traders’ perceptions of market timing
Jeffrey Todd Lins, director in quantitative analysis at Saxo Bank in Copenhagen, discusses the importance of timing in making trade decisions following an economic release
Advanced IRB Basel II approach delayed
BASEL – The Basel Committee on Banking Supervision has said that implementation of the advanced internal ratings-based approach (IRB) for credit risk and the advanced measurement approach (AMA) for operational risk will be delayed until the end of 2007…
NAB’s forex losses wipe out trading income
MELBOURNE – National Australia Bank’s entire first-half trading income was wiped out by its FX options losses, the bank’s financial results revealed last week.
AIB rapped for overcharging
DUBLIN – Allied Irish Banks (AIB) sailed into another forex controversy last week, as it emerged the bank has been overcharging for forex deals for the past eight years.
BIS reports FX options surge
BASEL – FX options business increased by a massive 77% year-on-year in the second half of last year, according to Bank for International Settlements (BIS) statistics released last week.
Banks compete for e-FX talent
LONDON – Dealers combining technological and sales expertise are in short supply as banks compete to secure staff that can aid their success in the growing online FX market.
Solving investment problems with forex
An asset manager may look to euro/Swiss franc and euro/sterling structures to take advantage of investor uncertainty, says David Durrant, chief currency strategist at Julius Baer Asset Management International in New York
Data sets tone for firmer dollar
NEW YORK – Much stronger than expected economic data from the US last Friday has set the tone for a firmer US dollar this week – potentially putting an end to the nervousness that has kept some clients out of the market in recent days.
Commodities drive client FX
LONDON – Banks are reporting growing business from clients needing structured FX and commodities solutions. The growth of commodity trading adviser (CTA), private banking, hedging and investor interest in FX is helping to boost demand, said bankers in…
What is oil telling us?
The high cost of oil in the US may hit the dollar hard in Q4, says John Taylor, chief investment officer at overlay manager FX Concepts in New York
NAB options desk "open again"
MELBOURNE – National Australia Bank (NAB) has resumed limited trading in currency options, as an April 30 deadline to amend its shortcomings passed last week.
Bank rivalry in treasury opens clients’ credit lines
GREENWICH, CT – Increased competition for treasury management business among banks is making credit more easily available to global corporates and institutions, according to new research published last week.
ERM smooth says HKMA
HONG KONG – Hong Kong’s linked exchange rate mechanism worked "smoothly" last year, although the Hong Kong dollar strengthened "markedly" in Q4, the Hong Kong Monetary Authority (HKMA) said last week.
CME FX up 50%
CHICAGO – The Chicago Mercantile Exchange last week said FX volumes were up 50% year-on-year in Q1 to 188,000 rounds per day, while revenues for forex rose 43% to $21 million.