Last week, HSBC cemented its position in Asia as a leader in cross-border RMB settlements – but things look less bright back in the UK, where the bank admitted to making an alarmingly small provision for FCA fines.
HSBC Holdings, which is currently being investigated over its role in the foreign exchange price fixing scandal, has put aside just £236m to cover potential fines. This is dramatically lower than the £400m expected, and pales in comparison to the £600m earmarked by JP Morgan and Citibank.
The revelation was ill-received by investors, with share prices falling by 1.7% this morning.
Meanwhile, on Thursday HSBC executed a landmark FX transaction for South Korea by settling a purchase of Chinese renminbi (RMB) against Korean won (KRW) by a Korean trading company. The payment was settled through Korea’s RMB clearing bank, the Bank of Communications in Seoul.
HSBC has a long history of settling cross-border RMB trade, having been the first foreign bank to do so, first in Hong Kong and then across a number of continents. It also arranged the first offshore RMB IPO and, in London, issued the first RMB bond outside China.
Peter Kim, HSBC’s head of markets for Korea, said: “We believe this landmark deal will contribute to accelerating the process of RMB internationalisation in Korea. We will give full support to this key initiative for the Korean government and will continue offering our RMB insight and expertise to all our clients in Korea so they can benefit from the globalisation of China’s currency.”
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
As the May 25 deadline for Europe’s General Data Protection Regulation (GDPR) inches closer, many treasurers are being lumped with the task of ensuring their wider company is compliant.
APIs may be a solution to MT940 challenges, says Karen Fagan, treasury operation manager, for British television company, ITV.
#PSD2FinishLine recently started trending on Twitter. As the country slowly grows in excitement throughout the month of November, with the C-word on ... read more