The prospect of fierce competition between Chinese and western banks for international RMB business strengthens

While flow business models are likely to remain challenged, it is clear that there is a new long-term challenger to the traditional flow monsters.

With currency moves relatively muted and few discernible trends to trade, it has not been an easy market for many FX traders, but low volatility has created favourable conditions for the recovery in the carry trade. The eerie calm and the Fed-driven global capital market have caused market players to adopt tail-risk hedges and long-vol trades for the inevitable turn in the cycle.

When it comes to the difficulties in liquidity management faced by treasurers operating in China, 21.3% say renminbi cash-pooling is top of the list of issues.

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Dark pools are the most recent corner of the financial markets facing the wrath of the regulators. However, despite the furore and speculation that some banks will close them down, foreign-exchange dark pools are gaining popularity and are predicted to increase in use among the buy and sell side.

As Thomson Reuters announces a revision to foreign-exchange trading rules, data from the Euromoney FX Survey 2014 reveal the majority of respondents want to see the joint WM Company and Thomson Reuters fix remain as the benchmark.

As the FX regulatory landscape gets revamped, data from the Euromoney FX Survey 2014 shed light on what the market wants when it comes to benchmark reform, including its views on sticking with the current WM Company and Thomson Reuters fix.

Bankers are already seeing demand for direct renminbi-sterling deals, and anticipate a rise in volumes and market makers, since the announcement on Thursday it is now possible to directly trade these two currencies in China’s onshore interbank foreign-exchange market.

The jury is out on whether the use of regional treasury centres is a cost-effective means for treasurers to minimize the effects of currency volatility in emerging markets.

While renminbi trade flows between mainland China and emerging markets continue to grow, many domestic and western corporates remain reluctant to trade in the Chinese currency.

The aftermath of the ECB’s negative-rates move has left Scandinavian currencies lacking meaningful direction. Mixed economic data in Sweden, and fears over the damage to exporters in the event of rising rates in Norway, are challenging market positions.

The rand, as a high-beta benchmark for global risk appetite, has been buoyed up by benign international market conditions. However, analysts say a stubborn current-account deficit and weak growth suggest a bearish stance on the rand is appropriate in the medium to long term.

Despite the stunning revival of emerging-market currencies, and the fragile five in particular, high and ultra-high net worth individuals remain reluctant to increase their exposure, suggesting many funds have missed out on the rally.

A CFTC official frustrates European regulators at the IDX conference by suggesting futures clearing should migrate to the US to avoid a conflict between Dodd-Frank and EMIR.

Chief executives of Eurex, Nasdaq OMX and Intercontinental Exchange hit back at criticism of high-frequency trading.

Government plans to crack down on the UK’s foreign-exchange market amid reports of mass manipulation could see the demise of the London FX fix. Suggested reforms range from a transparent auction-based pricing system to banning the practice of last look.

The Las Vegas casino that Deutsche Bank finally managed to sell just before announcing its most recent capital increase – The Cosmopolitan – uses the catchphrase “Just the right amount of wrong” to tempt customers.

While many analysts reckon a more coherent monetary stance, foreign-investor longs and a modest pace of Fed tapering will continue to buttress the currency, some fear domestic and global shocks will persist.

With ECB policymakers meeting in Frankfurt next week, European exporters will watch with bated breath amid expectations the central bank will take action that helps weaken the euro. However, those anticipating fireworks might be disappointed, analysts say.

The renminbi has risen dramatically as a world payments and trade-settlement currency in the past three years. According to the Chinese bank ICBC, it could become a mainstream international currency as soon as 2017.

After the rupee’s spirited rally in line with the ascent of newly installed Indian prime minister Narendra Modi, analysts say rising US yields could undercut the currency, while others claim strong equity inflows and an improvement in the current account suggest appreciation for the rest of the year.

Record low volatility in G10 currencies has driven down volume on large FX trading platforms, but a structural market shift is also pushing liquidity providers to quote prices to disclosed rather than anonymous platforms.

The UK pound has steadily appreciated against leading currencies during the past year, as positive economic data have provided a much-needed boost – but Scotland’s looming referendum on independence and escalating fears of a UK housing bubble suggest the rally is reaching its final stages, predict analysts.

2014 was hailed as the year of the dollar comeback by analysts across the Street, but the prediction has fallen flat as the US currency has failed to strengthen against the euro. Forecasters are divided as to what the future holds for the world’s most traded currency pair.

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On Thursday evening, more than 200 foreign-exchange market players from around the world attended the Euromoney FX Survey Awards dinner at Bloomsbury Ballroom.

The regulatory probe into allegations that traders have colluded to manipulate the $5.3-trillion-a-day foreign exchange market has some way to run, but some investors are pre-empting the results with technologies they say will help them reduce their reliance on industry benchmarks.

Market rigging lawsuits, trader suspensions and a move to swap execution facility trading are hurting banks’ ability to make money in foreign exchange, warn analysts.

Facing difficult trading conditions and rising regulatory costs, FX market participants are hoping a rising economy will give business a boost.