The ongoing investigations into the allegations of manipulations of forex market benchmarks has spurred most major banks to consider setting up compliance units in order to ensure that its FX traders stick within the law in their day-to-day business.
The banks have also set aside funds to cover the cost of fines after Lloyds Banking Group was slapped with a $370 million fine for violating rules in FX market rules. JP Morgan Chase & Co moved to set up its own compliance department that will be headed by Andrew Ferry, its former Head of Swaps for Europe, Middle East and Africa. Mr. Ferry will ensure that the lender complies with rules touching on FX and rates market on a regular basis, though his formal title is yet to be named.
Mr. Ferry will answer directly to James Kenny and Troy Rohrbaugh, who were appointed as co-heads of JP Morgan’s global rates, emerging markets, commodities and FX operations in April.
Meanwhile, Bloomberg News singled out the Barcelona-based FXStreet as a global leader among users of currency-market analysis on Twitter, according to the number of retweets, followers and the percentage of posts marked as “favorite”. The company was noted for its use of social media to promote its business, which it plans to diversify to include other asset classes such as oil, EFTs, CFDs and commodities as the low liquidity in the $5.3 trillion-a-day FX market makes it difficult for firms to earn significant profits.
Separately, FX broker EXNESS defied market trends after it announced that trading volumes in July stood at $185.1 billion, which is marginally higher than June’s $184.7 billion. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
To contact the reporter of this story; Yashu Gola at email@example.com