BY Jon Matte » May 24, 2013 AT 3:14 pm
Broadway Technology eyes Asia with Westpac forex software deal
Philip Stafford – FT.com
Broadway Technology, a fast-growing US trading software maker, has made major steps into the Asian market with a deal to provide technology to trade foreign exchange for Westpac, the Australian bank. The group, whose technology is used in fixed income and forex markets, is targeting the region for growth as ever-rising technology costs force banks to rethink their attitudes to spending on IT.
Yuan Gold Trade in Hong Kong Triples as Currency Gains Cut Risk
Trading in gold using the Chinese currency has tripled in Hong Kong this year as the yuan’s rally to a 19-year high helps limit risks for jewelers.
Myanmar’s Currency Slumps as Imports Flood in
Myanmar’s currency has plunged more than 7 percent over the past month to the lowest since it was floated last year.
BY Jon Matte » May 23, 2013 AT 7:24 am
China Tightens Trade-Document Scrutiny After Fake-Export Reports
China’s foreign-exchange regulator told banks to improve checks of customer documents related to special trade zones amid speculation that the areas have been exploited to disguise capital inflows as exports.
Grexit No Longer Likely, Says Man Who Coined Phrase
The economist who coined the term “Grexit” says the possibility of Greece exiting the euro zone has receded “markedly”, reversing predictions he made in July when he saw a 90 percent chance of an exit within the next 12-18 months.
Fed Leaves Market Guessing
JON HILSENRATH and VICTORIA MCGRANE – WSJ.com
In a day of conflicting messages from the Federal Reserve that roiled financial markets, Chairman Ben Bernanke left some straightforward new clues about the central bank’s plans for its $85 billion-a-month bond-buying program.
BY Jon Matte » May 22, 2013 AT 7:22 am
Japan Keeps Monetary Policy Steady
HIROKO TABUCHI – NYTimes.com
The Bank of Japan stood pat on monetary policy Wednesday amid market jitters over volatility in bond markets, which has threatened to undermine the country’s battle to end deflation and stimulate growth in the giant economy.
Swiss franc hits lowest level for two years
Alice Ross – FT.com
The Swiss franc hit its weakest level in two years against the euro after the head of Switzerland’s central bank said the country could impose negative interest rates and did not rule out more extreme measures to weaken its currency.
China Central Bank Denies Report on Capital Account Liberalization Proposal
The People’s Bank of China Tuesday denied a local news report that the central bank governor and prominent economists have advised Chinese leaders on a plan to fully liberalize the country’s capital account by the end of 2015.
BY Jon Matte » May 20, 2013 AT 7:43 am
New Egypt central bank ruling a blow for local money market funds
Reuters via Yahoo! News
By Patrick Werr CAIRO – Egypt’s central bank, worried that banks are investing too much of their cash in local money market and fixed income funds, is imposing stricter limits on such investments, a move asset managers say could cripple their industry.
Thinking the Unthinkable: Quitting a Currency
THOMAS CATAN and MARCUS WALKER – WSJ.com
Unemployment in Spain is at 27%. Young people are fleeing Portugal and Ireland. One-in-four Greeks say they have difficulty paying for food. Despite the Depression-era conditions, however, Europe has no crash plan to get people back to work.
Goldman Sachs Chief Confident Euro will Survive – Report
The chief executive of Goldman Sachs ( GS ), Lloyd Blankfein, is confident the euro will survive despite the debt crisis, he said in an interview with newspaper Welt am Sonntag.
BY Jon Matte » May 17, 2013 AT 6:54 am
Buy-side take-up of execution systems threatens ECNs
A need to manage trades more efficiently across assets, combined with the proliferation of available platforms and exchanges, is pushing the buy side towards greater use of execution management systems (EMSs), which could lead to a shift in the position of multi-dealer platforms in foreign exchange.
Asian Currencies Drop as Yen Weakness Spurs Intervention Concern
Asian currencies declined for a second week on speculation regional central banks will allow their exchange-rates to depreciate to keep exports competitive with Japan, as the yen fell to a four-year low.
The Euro Crisis is Calming Down. Sell Euros.
Katie Martin – MoneyBeat – WSJ
The euro is set to fall, says Deutsche Bank. The reason: the euro crisis is fading. Come again?
BY Jon Matte » May 16, 2013 AT 7:01 am
China to launch offshore renminbi fund
Simon Rabinovitch in Beijing – FT.com
China is set to push its currency deeper into global capital markets with the launch of the country’s first-ever privately managed fund that invests in offshore renminbi assets.
Rates desks knocked at global investment banks
Giles Turner – Financial News
G10 rates businesses at the largest investment banks were hit hard over the first quarter, according to a new report – and incoming regulation could spell further gloom for this business line.
Tokyo Stock Exchange To Begin Calculating US Dollar Hedged Index
To satisfy market demand for TOPIX index values that hedge foreign currency risk, the Tokyo Stock Exchange has been calculating and publishing the TOPIX Total Return Euro Hedged Index since January 2011 and will now begin calculating the TOPIX Total Return Index hedged into US Dollars.
BY Jon Matte » May 15, 2013 AT 7:00 am
Borg ‘Not Satisfied’ With Swedish Banks’ FX Financing
Swedish Finance Minister Anders Borg said banks in the largest Nordic economy are taking too long to wean themselves off foreign funding as he warns the financial industry will need to pay for the risks it’s creating.
[Video] Curbs Needed to Cut Banks’ Use of FX Financing
Swedish Finance Minister Anders Borg talks with Bloomberg’s Rebecca Christie about efforts to stimulate European economies, banking union and measures to curb banks’ use of foreign-exchange financing. They spoke yesterday in Brussels.
Investment banks’ drive into forex proves less lucrative
Alice Ross – FT.com
Investment banks saw dwindling returns in their foreign exchange divisions in the first quarter amid fierce competition on prices even as the drastic fall in the Japanese yen led investors to pile into the currency market.
BY Jon Matte » May 13, 2013 AT 6:46 am
Marex takes axe to foreign exchange
Farah Khalique – Financial News
Marex Spectron, the commodities futures brokerage, has closed its foreign exchange desk in New York and conducted an intensive shake-up of staff in London, according to sources familiar with the situation.
EBS Direct begins initial trades with Commerzbank, Goldman Sachs, J.P. Morgan and Morgan Stanley
EBS, ICAP’s market-leading electronic FX business, announces today that EBS Direct is now live with its Beta programme and four liquidity providers, Commerzbank, Goldman Sachs, J.P. Morgan and Morgan Stanley, have all conducted initial trades on the platform.
China to simplify foreign exchange rules on foreign direct investment
Reuters via Yahoo! News
SHANGHAI – China’s foreign exchange regulator will this month simplify the rules governing foreign direct investment, the latest step towards deregulation and market reform under China’s new leadership.