Evaluation of Major Banks Threatens to Leave FX Settlements in Stasis
- Deutsche Bank AG and Barclays Plc are presently facing an evaluation that could lead to lapses or delays in the settlement of FX trades.
Deutsche Bank AG and Barclays Plc are facing the tangible prospect of holdups for their foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (FX) settlements, given an ongoing evaluation by the New York State (NYS) Department of Financial Services over currency manipulation.
The NYS Department of Financial Services, as well as their superintendent Benjamin Lawsky have warned that the evaluation of electronic trading in FX for both Deutsche Bank and Barclays could linger on for several months, according to a recent Wall Street Journal report.
While such delays or lapses in regulatory investigations or evaluations are hardly out of the ordinary, the scenario does present a dilemma for both institutions, namely as it could hold up FX settlements. As a result, Mr. Lawsky has championed an alternative strategy, suggesting that it may be worthwhile to abolish electronic trading out of FX settlements for his portion of the negotiations with those banks.
The past year has seen a number of regulatory finalities and fines being enforced against some of the biggest banks in the industry, given their respective role in the manipulation of currency rates. While a series of settlements have already transpired, Barclays was a notable omission from a November Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term with several regulators - the U.S. Justice Department is still in talks on settlements with several banks.
According to Mr. Lawsky in a recent statement on the handling of the evaluation, “I don’t think DFS is in a position to settle these matters until it is done with electronic trading or if electronic trading was carved out of settlements. Active monitors are in there right now, there’s a lot of data.”
Deutsche Bank AG and Barclays Plc are facing the tangible prospect of holdups for their foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (FX) settlements, given an ongoing evaluation by the New York State (NYS) Department of Financial Services over currency manipulation.
The NYS Department of Financial Services, as well as their superintendent Benjamin Lawsky have warned that the evaluation of electronic trading in FX for both Deutsche Bank and Barclays could linger on for several months, according to a recent Wall Street Journal report.
While such delays or lapses in regulatory investigations or evaluations are hardly out of the ordinary, the scenario does present a dilemma for both institutions, namely as it could hold up FX settlements. As a result, Mr. Lawsky has championed an alternative strategy, suggesting that it may be worthwhile to abolish electronic trading out of FX settlements for his portion of the negotiations with those banks.
The past year has seen a number of regulatory finalities and fines being enforced against some of the biggest banks in the industry, given their respective role in the manipulation of currency rates. While a series of settlements have already transpired, Barclays was a notable omission from a November Settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term with several regulators - the U.S. Justice Department is still in talks on settlements with several banks.
According to Mr. Lawsky in a recent statement on the handling of the evaluation, “I don’t think DFS is in a position to settle these matters until it is done with electronic trading or if electronic trading was carved out of settlements. Active monitors are in there right now, there’s a lot of data.”