Brokers News 

Why are Tier 1 banks so afraid of direct FX counterparties? Bank of England gives first ever settlement account to non-bank firm

“Indeed, so difficult is the maintenance of prime brokerage agreements between the Tier 1 bank and non-bank OTC derivatives business that only a handful of genuine prime of prime brokerages exist to this day” reports financefeeds.com. This direct settlement agreement represents the very first of its kind globally, with Transferwise now positioning itself as the first non-bank payment service provider to be granted a settlement account with the Bank of England’s Real Time Gross Settlement (RTGS) system.This has created more than a degree of nervousness among non-bank institutional liquidity providers,…

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Widow of Forex fraudster has to pay more than $800,000 because of his scam

“Mr Karroum further misled investors by providing materially false or misleading account statements purporting to show profits from Forex trading” reports financefeeds.com. From December 2007 through May 2014, Mr Karroum solicited approximately $4 million from 18 investors for himself and on behalf of his company to be used for Forex trading. Source: financefeeds.com Share This:

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Dollars for…donuts: when the craze for FX simply gets out of control

“Therefore, by the book (albeit the book of American sanctions regulators), dollars that have touched Iran are problematic” reports tehrantimes.com. But instead of following the herd and asking, “where can I get some dollars to hoard?”, the better questions to ask are instead: 1.Knowing the demand for dollars in Iran, the exporter converts those euros to dollars at an exchange rate of 1,225, receiving 1,225,000 USD, which he then exchanges for rials at 56,000, receiving 68.600.000.000 rial.The fisherman then returns to Bandar Abbas, where he exchanges his dollars for rials…

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Markets News 

Why currency traders hate their jobs right now

“A deluge of uncertainty from the U.S.-China trade spat to threat of U.S.-led military action in Syria is gripping currency markets, overshadowing economic fundamentals and leaving currency traders in wait-and-see mode” writes Anneken Tappe for marketwatch.com. Both countries have threatened levies on billions of dollars worth of products, though none have been enacted yet.The Federal Reserve is going ahead with its gradual rate increases, which should support the dollar. Source: marketwatch.com Share This:

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Santander launches ‘fast and simple’ international payments service

“Santander has launched a new international payments service enabling customers to complete money transfers on the same day in many cases, or by the next day” writes Vicky Shaw for yahoo.com. Santander One Pay FX uses blockchain-based technology, a digital method of recording data.Santander’s customers in the UK can download the One Pay FX app. Source: yahoo.com Share This:

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Markets News 

First Mobile App Using Ripple Technology has Come…

“More specifically, the firm acknowledges they are trialing Ripple technology for remittance solutions” writes Jp Buntinx for livebitcoinnews.com. This particular application lets users spend up to 10,000 GBP per day.This is the first application from Santander, which uses Ripple technology.The first mobile application benefiting from this new technology is now live on the Apple App Store. Source: livebitcoinnews.com Share This:

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Markets News Stocks 

The world’s 5th largest FX dealer will not move its Euro dealing operations to Europe. Let’s clear up yet another media storm

“Unlike equities, bonds or derivatives, the $1.7 trillion per day cash foreign exchange markets are not risk-managed through clearing houses but instead settled via London-based CLS International Bank” reports financefeeds.com. In particular, Lord Myners, along with senior regulators in London, had concerns relating to how clearing operations can be expanded across both exchanges. Source: financefeeds.com Share This:

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Brokers News 

Prime Brokerage and counterparty credit risk for FX firms – What’s the current situation?

“Bearing this in mind, banks were taking a very conservative approach to credit risk, even in market conditions which were in their favor” reports financefeeds.com. Indeed, as far back as 2010, the Federal Reserve Bank of New York produced a document about credit risk in FX, detailing its best practice guidelines which apply to banks giving credit to FX brokers and prime brokers on an OTC basis.During recent years, obtaining credit from banks for the purposes of running an OTC derivatives trading firm has become very difficult indeed.A year later,…

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Why the fad? Regtech was the buzzword of 2017, but post ESMA rulings it is more relevant today

“In conclusion, the retail FX industry must emulate the banks and institutional entities in the major financial centers of the world” reports financefeeds.com. In January this year, the new MiFID II rulings were implemented, and the word ‘regtech’ became conspicuous by its immediate absence.Her leaving one of the specialists in regtech and reporting therefore is another indicator in this direction.Last year, the absolute word of the moment was ‘regtech’, an abbreviation for regulatory technology, largely spurred by the advent of the newly implemented MiFID II market infrastructure regulations set forth…

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Markets News 

A Global Business: How Japan’s leverage restrictions did not matter a jot. ESMA rulings? What’s the fuss? – Op Ed

“These companies, between themselves, are responsible for one third of all global retail FX order flow in the OTC FX markets” reports financefeeds.com. This dynamic has continued and today’s Japanese market is stable, sustainable, remains dominated by the aforementioned giants and continues to be impenetrable to outsiders.Japan’s FX industry is completely centered on the domestic market, yet it accounts for between 35% and 40% of all retail FX volume in the entire world.Despite lack of international competition in Japan, business is booming for domestic retail FX firms, and no evidence…

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