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We’ve all heard the stories of how certain so-called market professionals have been able to book what proved fictitious profits because the bank they worked for had models which were pricing FX options significantly differently to the market. While it is true that opinions make markets, it is astonishing that this nefarious practice is still going on after the NAB debacle.

The Bank for International Settlements’ (BIS) annual review contains a detailed analysis of the events in FX that took place in the run up and aftermath of the turmoil that has stalked financial markets since August 2007. As most readers of this column are market participants, there is nothing that new to be found in the review and its value is more as a document of record for future FX watchers.

The sun continues to shine on the CME’s FX product suite. The exchange reports not only a record quarter, but also a best ever month in June. Quarterly turnover averaged a notional $93.8 billion, a 26% increase on the same period in 2007, while an average of 763,700 contracts changed hands each day in June, worth a notional $106 billion. This was an increase of 33% on June 2007.

It’s been described elsewhere as a friendly bit of poaching, but officially it’s a strategic partnership between UniCredit and NewSmith Capital Partners. Once it’s all approved, UniCredit will acquire NewSmith Financial Products (NSFP) and become an investor in NewSmith funds, as well as taking a 5% stake in NewSmith Capital Partners. As part of the deal, T J Lim, NSFP’s chief executive officer, will join the executive committee of UniCredit Markets & Investment Banking and also act as co-head of markets with specific responsibility for fixed income and currency, global credit and sales.

Because of its policy on not commenting on staff, there’s no confirmation that Stephan Coquillaud has quit the French bank, apparently with a junior colleague, where he was employed as an options trader. Market sources are putting two and two together and speculating that they are off to join Dave Hitchins at Tor Dom, although the Canadian bank had also not responded to enquiries at the time of writing. It should be a simple job this, it really should.

Word reaches me that Duffy has joined high frequency trading outfit D Square, which is run by Damian Mitchell, a former colleague of mine from Midland Bank. Naturally, I was surprised that the Welsh faux-soul songstress should be moving across to the world of finance to join the company as its seventh employee, so I called up Damian, who seemed so stunned that I’d heard he refused initially to give me any further details. “Listen shag,” I explained. “It’s like torture. I’ll find out all the deets eventually, but if you make it difficult, I’ll only get pissed off. So save your finger nails, if you get my drift.”

Alternative investment manager Millennium Global Investments has appointed Eelco Fiole as its group chief financial officer. The company has also appointed Marc Clapasson as managing director, product and business relationships based in Geneva. Clapasson, who will be responsible for sales into German-speaking Europe, previously headed the product and business development unit at Prime Capital (Asset Management) AG in Frankfurt.

There a funny bunch, those central bankers. Word reaches me that Ben Welsh, head of fixed income, commodities and currencies at UniCredit Markets & Investment Banking, who has just got a new boss (see UniCredit Group and NewSmith get betrothed), has joined the Bank of England’s Joint Standing Committee (JSC). This was established in 1973 as a forum to discuss broad market issues and most FX players still regard it as an honour to serve. Despite a commitment to transparency, the BoE declined to confirm the news, telling me I’d have to wait for publication of the minutes of the latest meeting, which took place on Wednesday, although Welsh wasn’t there as he is travelling. I wonder if they start the meetings off by rolling up their trouser legs and giving each other a funny hand shake?

Four months after the introduction of actively managed exchange-traded funds, registered investment advisors are on the cusp of moving into these offerings.

As the second largest financial institution in Montenegro, NLB Montenegrobanka is a key player in the country’s burgeoning banking sector, serving a growing number of retail and corporate customers through its 15-strong branch network. In 2007, the bank nearly tripled its profits to €3.4 million. As a member of Slovenia’s NLB banking group, NLB Montenegrobanka has helped to forge important economic links between Slovenia and Montenegro. By providing consumer loans for goods manufactured by Slovene producers, the bank has helped Slovene companies to enter the Montenegrin market. At the same time it provides loans and other forms of export financing to Montenegrin companies exporting to Slovenia.

Privredna Banka Zagreb continues to be the leader of the banking pack in Croatia thanks to its popular combination of core banking services allied with specialist leasing, real estate and fund management capabilities. Its 230-strong branch network and extensive electronic distribution channels give it the leading position in the credit and debit card market and more than 77.5% of total transactions were carried out electronically.

A part of the RZB group since 2003, Priorbank is one of the two largest banks in Belarus, alongside last year’s winner, Belagroprombank. It is also the only privately owned bank in Belarus’s top six banks by size. It made significant strides forward in 2007: assets grew by 48%, loans by 44% and deposits by 32%. The bank gained more than 134,000 new customers last year, bringing its customer base above the 750,000 mark, while the number of branches grew from 61 in 2006 to 81 by the end of 2007. Return on equity was up by one-quarter, while profit after tax rose by one-third.