Governments turn to private sector to fund infrastructure.

Regional currencies appear to be moving to the ebb and flow of the daily fixing rate of the Chinese renminbi versus the US dollar, analysts at HSBC believe. Such signals could indicate the potential for the renminbi as a reserve currency.

European high-frequency trading (HFT) firms – including Optiver, IMC and Getco’s European arm – have formed a unified trade group within the Futures Industry Association (FIA).

Rapid urbanization puts pressure on infrastructure. It also raises opportunities for banks to develop a range of electronic payment systems to improve city-dwellers’ lives. Laurence Neville reports.

Keith Taylor, the head of emerging markets spot foreign exchange at Calyon in London, has left the firm, sources have told EuromoneyFXNews.

Short positions on the US dollar rose in the week ending May 31, the US Commodity Futures Trading Commission’s (CFTC) latest Commitments of Traders report shows, based on International Money Market data.

The euro hovered near a one-month high against the dollar early on Monday, amid expectations that the European Central Bank is set to signal imminent further rises in interest rates when it meets this week.

Euromoney surveyed the FX options market for the first time in 2011 as part of the annual FX survey. Deutsche Bank (with a 17.32% market share) showed itself to be a powerhouse in this market, as it has been in the spot and forward markets for the past seven years.

InterContinental Exchange’s benchmark US Dollar Index futures enjoyed a record month of trading during May, with 822,538 contracts changing hands. That is an increase of nearly three quarters on April’s total of 470,221.

Euromoney surveyed the FX options market for the first time in 2011 as part of the annual FX survey. Deutsche Bank (with a 17.32% market share) showed itself to be a powerhouse in this market, as it has been in the spot and forward markets for the past seven years.

Foreign banks are unlikely to participate in the Singapore Exchange’s (SGX) new clearing service for non-deliverable Asian foreign exchange (FX) forwards.

The Asian currency bloc is often touted as an attractive medium- to long-term appreciation trade, based on the emerging-markets growth story and spurred by the re-emergence of global growth.

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Banker to become regional head; rivals applaud hire.

CME Group’s foreign exchange trading volume averaged $135bn a day in notional value during May, figures released today show. The volumes are a 22% rise on April’s mark of $111bn in cash value.

The euro has risen against the dollar amid expectations that interest rates in Europe are likely to rise faster than in the US, while the yen remained steady after Japan’s prime minister survived a vote of no confidence.

On April 29 the US Treasury proposed exempting foreign exchange forwards and swaps from clearing and trading rules contained in the Dodd-Frank Act. The Global FX Division, a trade group representing the biggest users of foreign exchange, mainly banks, said at the time. "We very much welcome the US Treasury ‘proposed determination’, as moving FX swaps and forwards to centralized clearing will not only create additional costs for business users, but could also increase systemic risk." However, one influential financial market academic argues that the proposal to exempt FX might be a mistake, and could indeed foster systemic risk.

USD issues ’11 ’10 Bank 1 1 JPMorgan 2 4 Citi 3 2 Bank of America Merrill Lynch 4 5 HSBC 5= 7= Deutsche Bank 5= 3 Goldman Sachs

InterContinental Exchange is to launch 10 new FX futures on ICE Futures US. The contracts, chiefly newly sized euro pairings, will begin trading on Monday June 6.

The US has piled pressure on China to speed the appreciation of its currency in recent days, as the world’s largest economy looks to reduce its ballooning trade deficit.

The Australian dollar was the standout currency early on Wednesday, after a weaker-than-expected report of economic growth was dismissed by investors as a temporary aberration caused by floods and cyclones.

James Pearson, global head of G10 spot FX trading at Nomura, has left the firm, according to sources who spoke to EuromoneyFXNews.

Singapore Exchange will commence clearing of Asian foreign exchange forwards by September, boosting its bid to catch Tokyo as the largest regional foreign exchange player.

US dollar net shorts fell sharply in the week to May 24, the US Commodity Futures Trading Commission’s latest Commitments of Traders report shows, based on International Money Market data.

Currencies perceived to outperform when risk appetite is high have become increasingly correlated in recent months as the market switches between ‘risk on’, fuelling demand for the euro and commodity currencies, and ‘risk off’, signalling a retreat to the US dollar.

The euro rose against the dollar and the yen today (Tuesday) amid speculation Greece may avert a restructuring of its debt after European officials said a new aid package would be agreed by the end of next month.

The euro was set to log its strongest weekly performance against the dollar for a month on Friday, but the currency is likely to tread water, analysts say, as investors weigh European debt concerns against the dubious attractions of buying the dollar.

The Federal Reserve’s stated policy of pursuing a strong dollar is increasingly at odds with monetary responses to the US’s deteriorating fiscal position, Willem Buiter, chief economist at Citi, said in a report published yesterday.

Thomson Reuters has linked its new trade confirmation service to CME Clearing and Singapore Exchange. The service will initially focus on non-deliverable forwards and FX options.

Foreign investors piled into Japanese bonds in the past week, flow data from the Ministry of Finance showed on Thursday, potentially helping support the yen.