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Are we witnessing the birth of a new EBS?

Two surveys released this week suggest that while the FX market is still expanding, the rate of growth has slowed. Covering activity in October 2007, the US foreign exchange committee (FXC), which meets under the auspices of the New York Fed, and the UK’s joint standing committee (FX JSC), which is sponsored by the Bank of England, show that activity rose by 13% in the US market from April 2007 and by a more modest 7% in the UK. Total average daily turnover in the US was put at $701 billion, while in London it was $1.334 billion (see table below).

In next month’s Euromoney, there is an article which examines whether there is a level regulatory playing field in the US for the FX platform providers. Further ammunition for those who believe it is not comes this week in an announcement from the National Futures Association (NFA). Titled, “Effective Date of Amendments to the Interpretive Notice Regarding Forex Transactions,” the NFA says that effective June 1, 2008, any forex dealer members (FDMs which act as counterparties to trades must disclose prominently, “in uppercase letters in at least 10 point size type,” that they may profit from the trade. Exchanges don’t have to do this. Of course, it could be argued that the exchange itself does not profit from trades which move against the client, the ultimate counterparty does. There are numerous conspiracy theories on the bulletin boards in the US and the NFA is right to examine some of the activities of the OTC platforms. In the past, there is no doubt that prices were shaded on occasions massively when clients came to exit positions. There’s far too much transparency and choice for that to happen on a widespread scale now and it seems that the NFA’s action is an example of too much too late.

Mark Carrodus has stepped down from his position as global head of FX spot and options at Deutsche Bank for personal reasons. He is set to return with his family to New Zealand. His replacement is Rob Mandeno, who coincidentally is currently based in New Zealand, but who will return to London to take up his new role.

Maybank tier 2 capital

Dow Jones boasts nearly 70 Islamic indices that cover a variety of Shariah-compliant equities and fixed-income securities around the globe. Now the group can lay claim to the largest, most visible and widely used set of Shariah-compliant indices in the world.

Greg Medcraft, former global head of securitization at SG, has left the bank after a 27-year career there. The new global chief, Jean-François Despoux, has appointed Jerome Jacques to replace Medcraft in the US, as head of securitization in the region.

Clients for Deutsche Bank’s structured products transcend geographic and sectoral boundaries in the global Islamic finance industry.

In the past few years, HSBC Amanah has demonstrated its ability to innovate through a series of fund products. Its Global Properties Income Fund is, at $1.7 billion, the biggest Islamic real estate fund.

In the past 12 months, KPMG has provided more than 50 Islamic financial institutions with assurance and advisory services. It is the geographical spread of this business that gives KPMG this award.

While some of the biggest names in international banking are struggling to keep their heads above water, Qatar Islamic Bank goes from strength to strength.

Clifford Chance