Foreign exchange
FSA market watch letter focuses on market abuse controls
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Demand for FX-linked structured products slows
Appetite for FX-linked structured products has waned over the past two months as investors have sought to unwind existing products, particularly structures based on carry trades. Meanwhile today’s decision by the Bank of Japan to cut interest rates from…
Nine US banks asked to justify bonuses
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Ice picks off ClearCorp
Atlanta-based Intercontinental Exchange (Ice) is to take over Chicago-based clearing house The Clearing Corporation (ClearCorp) as part of an effort to establish itself in the credit default swap (CDS) market.
IMF and Fed plan bailouts for emerging markets
The International Monetary Fund has agreed to step up its short-term lending programme to emerging market nations in order to ward off the spreading debt crisis.
Credit dries up in shipping industry
Letters of credit, a form of guarantee that are fundamental to world trade, have become increasingly hard to secure, as lack of confidence in financial institutions spills over into the shipping industry.
Risk USA: Buy-side expresses counterparty unease
Concerns about counterparty risk and its effect on the business of investment firms were raised repeatedly from buy-side market participants at Risk USA , which concluded on Wednesday in New York.
Bank of England calls for systemic reform
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Government stakes in banks raise counterparty conundrum
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Risk USA: Call to link risk manager compensation to performance
The compensation structure for risk managers should be revamped as part of wider changes to risk management processes in light of the credit crunch, delegates at Risk USA in New York were told yesterday.
Risk USA: IMF unveils dire global economic outlook for 2009
The global economy will experience growth of just 3% next year, as the effects of the financial crisis spill over into the wider economy, the International Monetary Fund (IMF) has said.
Government stakes in banks raise counterparty conundrum
The collapse of Lehman Brothers in September has put greater focus on the issue of counterparty credit risk. But dealers admit to being stumped as to how the taking of equity stakes in major banks by governments across the globe will play out.
Risk USA: Government inconsistency on rescues deepens crisis
The US Government's ad hoc response to bank failures has increased instability in the US banking system and deepened the credit crisis, a senior risk officer told delegates at Risk USA.
MF Global head steps down after Lehman losses
Kevin Davis, chief executive of US broker MF Global, has resigned as the company prepares to report unexpectedly high losses from the collapse of Lehman Brothers last month.
IMF, EU and World Bank feed cash-starved Hungary
The International Monetary Fund, the European Union (EU), and the World Bank will provide a $25.1 billion financing package for Hungary to support its ailing economy.
SEC opens up US to foreign trades
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Mexican regulator investigates corporates’ derivatives disclosures
After several Mexican corporates reported millions of dollars of mark-to-market losses on foreign exchange derivatives, the Mexican banking and securities regulator has launched an investigation into their disclosures about derivatives positions.
Bank of England predicts long haul for economy
The Bank of England plans to raise minimum capital levels and impose tight limits on bank leverage, as part of a push to prevent another credit crisis.
Japanese ban naked shorts despite liquidity fears
The Japanese Financial Services Agency today banned naked shorting of stocks on the Tokyo exchange until the end of Q1 in 2009. But the experience of other countries implies the country now risks making the stock market even more volatile and illiquid.
Taiwan watchdog clamps down on overseas investment
Taiwan’s financial markets watchdog has revised regulations governing the investment by domestic insurance companies in certain overseas assets by introducing limits on a their total investment in US government agency issued mortgage-backed securities …
CDS spreads widen after stock markets crash
Following a volatile week of crashes across the world’s equity markets and fears of a global recession, the cost of credit protection on financials has risen further.
US Treasury considering allowing insurers, auto-makers to access Tarp
The US Treasury is considering allowing non-banking institutions such as insurers and auto-makers to access federal funds under the government’s $700 billion bailout package, a senior Treasury official has confirmed.
FSA confirms new CFD rules despite dissent
The UK Financial Services Authority (FSA) will go ahead with rules forcing general disclosure of holdings of contracts for difference (CFDs), despite market concerns that the cost would be too high.