FX: Institutional trading restrictions limit risk mitigation, research suggests
The flexibility of any response to a big market event is too restricted, especially by narrow trading hours for 24-hour markets. JPMorgan Chase Institute analysed institutional investor trading behaviour before, during and after three events: the decision of the Swiss National Bank to remove its floor on the Swiss Franc/euro exchange rate; the UK EU referendum; and the 2016 US presidential election.
Banks offer consistently cheaper FX liquidity than ECNs, says Pragma
Banks consistently offer more competitive prices in spot FX than their ECN counterparts — for all but a few minutes per day — according to research conducted by Pragma, a provider of algorithmic trading technology.
Mortgage loans: Don’t cry for Swiss franc lenders
Banks in Poland and Croatia will only have themselves to blame if they end up footing the bill to resolve the Swiss franc mortgage problem.
Poland: Bank M&A threat from Swiss franc mortgage move
$5.8 billion bill for loan conversion; portfolios ‘impossible to price’, say analysts.
Black Thursday: Seven lessons to remember
Six months have passed since the Swiss National Bank (SNB) scrapped its EUR/CHF 1.20 floor on January 15, unleashing a torrent of volatility and burning traders across the globe. What lessons should we remember from one of the craziest days in currency markets?
Spread-betting poster-child IG in the line of fire post-SNB
Euromoney can reveal more details emerge about IG’s alleged failures to deliver best-execution practice on Black Thursday.
Swiss peg debacle leads to cull in FX prime brokerage
A series of market disasters in recent years, culminating in the SNB’s decision to abandon its peg to the euro, have forced banks to reconsider their commitment to the prime brokerage (PB) business, leaving many smaller hedge funds and other clients in the cold – but a new generation of providers is taking their place, promising to revolutionize the business.
The Swiss National Bank (SNB) has expanded the scope of its negative rates policy, meaning more assets deposited at the central bank will incur charges – but more must be done to substantially weaken the currency, say analysts.
FXCM places interbank business in shop window to repay SNB shock loan
FX broker FXCM has unveiled its plans to sell its non-core assets to repay loans post-Swiss National Bank disaster, and focus its resources on wholesale as well as prime of prime services.
Circuit breakers: Does FX need a kill switch?
Foreign-exchange broker FXCM’s CEO calls for wider adoption of circuit breakers on FX platforms to prevent another Swiss franc shocker as seen on Black Thursday, but critics question whether it is the right solution and even suitable for an over-the-counter (OTC) market such as FX.
Regulators eye leverage cap in FX
The convulsions after the SNB’s decision to cease pegging the Swiss franc to the euro are still being felt, with regulators in Europe and Australia debating the merits of tougher controls on leverage in FX markets for retail investors.
SNB shocker spawns Downfall parody
The internet responds to the crunch facing FX trading platforms post-SNB.
FXCM CEO reveals next steps post-SNB disaster
After the events of Black Thursday, the CEO of crest-fallen FXCM, the FX broker, discusses the shake-up in its business model, the future for retail flows, and lashes out at the institutional FX market structure.
Speculators smell blood as Danish peg comes under fire
After the shock removal of the Swiss peg to the euro, speculators are testing the DKK peg, though, for now, the central bank is well-placed to withstand the pressure.
Inside investment: Swiss franc and euro – the allegory of the man cave
How did the relationship of the Swiss franc and the euro turn out to be purely platonic? Conscious uncoupling was perhaps inevitable.
Debt capital markets: SNB policy change hits Swiss franc debt issuers
Central and Eastern Europe most affected; foreign Swiss franc bond issuance is frozen.
Emerging Europe: Swiss franc appreciation hits CEE banks
Politicians urge ‘Hungarian’ solution; Polish, Croatian banks in firing line.
FX pegs: Faith no more
The SNB's removal of its currency floor with the euro and a rising greenback call into question the strength and wisdom of currency pegs elsewhere, especially in the Gulf and Hong Kong.
Retail foreign exchange ripe for consolidation post-Swiss shock
The retail FX market is ripe for further consolidation as brokers that successfully navigated the volatility of the Swiss franc cap prepare to swoop on strugglers that took a hit, says the CEO of US forex broker Gain Capital.
Julius Baer worst hit in CHF/EUR unpegging
Julius Baer to take profits hit due to high CHF cost exposure, say analysts.
Swiss franc move shakes up trading flows
Foreign-exchange markets have been hit by bouts of extreme volatility this year, prompting investment managers to hastily rebalance their portfolios, but it also signals a welcome return for traders seeking to maximize gains from moving currency markets.
CHF unpegging vexes M&A outlook for small Swiss private banks
The small private-banking industry in Switzerland urgently needs to consolidate, given the impact of regulation, capital requirements and weak profitability of the over-banked sector. The unpegging of the CHF to the euro complicates the M&A outlook.
SNB abandons euro peg ahead of expected ECB QE
The SNB has been under sustained fire in its attempt to defend its euro peg in recent years, as ECB loosening and risk aversion increased safe-haven flows. Thursday's rate cuts and the shift in the long-defended policy regime have shocked markets and have far-reaching implications for the euro and eastern Europe.
HKD peg back in focus as SNB removes currency floor
The Hong Kong dollar’s peg to the US dollar has, once again, come under scrutiny after the Swiss National Bank’s (SNB) removal of its currency’s floor roiled currency markets globally.
SNB set to roil Swiss bank earnings
The shock decision by the Swiss National Bank (SNB) to discontinue its euro peg and impose a 0.75% rate on sight deposit accounts will inevitably wreak havoc on Swiss banks’ earnings, say analysts, citing the rising CHF-denominated cost base of global investment banks, which derive the bulk of their income in USD and EUR.
Credit Suisse buoyed by Swiss and Asian clients
Hans-Ulrich Meister, chief executive of Credit Suisse Private Bank, talks about his firm’s geographical aims.
Swiss franc volatility rises on gold vote
Implied volatility on the Swiss franc has risen sharply in recent days, amid speculation that a referendum at the end of this month might force the Swiss National Bank to greatly increase its gold holdings.Time is nigh for a Swiss franc plunge
Analysts pronounce an imminent end to the Swiss franc bull run, citing new safe-haven trades and the global economic recovery.
SNB reveals a penchant for the yen
Events in the eurozone – not the SNB – send Swiss franc lower
SNB could turn to negative rates to combat Swiss franc strength
Special focus: Currency wars
The joy of forex – introducing the currency sutra
Swiss National Bank reserve data provides further fuel for euro bulls
Foreign exchange: Toxic macro/monetary mix spells danger for euro
Swiss National Bank notches up a victory, but Swiss currency war continues
No need for SNB to raise EURCHF floor
Respite for havens: easing demand for CHF and DKK bodes well for EUR
SNB boosts reserve holdings of “other” currencies; euro holdings still rise
SNB to dominate FX price action as liquidity dries up