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Explanations for the market's significant retreat in November are more complex than for previous years.

Brazil's hedge funds break through

Investment banks need to think carefully about which institutions they market their services to.

Further proof that FX has gone mainstream comes with news that Rydex Investments has filed a registration statement with the SEC to launch a currency exchange-traded fund (ETF). When approved, the new ETF, which is based on the level of the euro against the dollar, will trade as a stock on the New York Stock Exchange.

Conditions attached to buy-out completion is more a sign of desperation than discernment.

With “no comment” seemingly the stock response to any question that is not about the latest all-singing, all-dancing enhancement to their internet trading platform, senior level appointment or record day, being a press officer or PR for an FX player is probably the easiest job in the market. To encourage more openness, it might be time for Euromoney to launch new categories in its highly regarded and prestigious polls – “most and least helpful press officers of the month”. Polling has already started.

Middle Eastern private investment and advisory firm Injazat Capital is launching a $100 million Islamic-compliant healthcare fund this month.

Brazilian and Mexican derivatives markets gain sophistication.

There has been no let-up in the spread war, highlighted in last month’s issue. Deutsche Bank has tightened up its spot FX prices even further to selected customers in response to Barclays’ introduction of precision pricing. Sources say that the bank is currently evaluating the impact, before deciding whether to roll it out further. A bank official says: “Deutsche Bank has recently introduced laddered and dynamic pricing to clients. This allows us to price liquidity to our clients more accurately.”

It is one of the great ironies of the European bond market that one of the largest market distortions occurs within the sovereign sector and are caused by the direct actions of Europe’s sovereign debt managers. The regulatory environment in Europe is tighter than ever, with the EU taking an aggressive and sometimes misguided stance in its aim of eliminating distortions in the capital markets, notably with its Market Abuse Directive and MiFID. And yet, despite all the EU’s talk of market efficiency, it ignores the market abuse happening right under its nose.

Greater anonymity, leverage and lower trading costs are seen as incentives.

Australia’s new-issue market heated up this month with the announcement of three large IPOs. Goodman Fielder, a leading Australian foods business, controlled by New Zealand entrepreneur Graeme Hart, intends to raise about A$2 billion ($1.48 billion) from a listing in Australia and New Zealand. Singapore Power’s holding company for its Australian electricity assets, SP AusNet, has also filed a prospectus for a simultaneous IPO in Australia and Singapore that is expected to raise approximately A$1.6 billion. Another electricity asset, Spark Infrastructure, filed in November for an IPO that aims to raise A$1.8 billion to fund the acquisition of minority interests in Australian power assets held by Hong Kong’s Cheung Kong Infrastructure.