The move expands the scope of a similar document, seen on Tuesday, in which the central bank said it will require banks to hold reserves on behalf of clients»
trading of currency forwards, in a move seen curbing speculation and volatility after a shock Aug. 11 yuan devaluation.
Not exact matches
Figuring out ways to regulate
trading by sophisticated investors in derivatives, which go by exotic names such as «
currency forwards» and «credit default swaps,» is a hot topic in international policy circles, largely because failures on this murky side
of the market are blamed for the 2008 global credit meltdown and the recession that followed.
In the September 2015 version
of her paper entitled «A Low - Risk Strategy based on Higher Moments in
Currency Markets», Claudia Zunft explores an adaptive currency trading strategy that exploits the predictive power of higher even moments of forward currency exchange rate
Currency Markets», Claudia Zunft explores an adaptive
currency trading strategy that exploits the predictive power of higher even moments of forward currency exchange rate
currency trading strategy that exploits the predictive power
of higher even moments
of forward currency exchange rate
currency exchange rate returns.
They consider equally weighted carry
trade strategies that each month buy (sell) one - month
forward contracts for the one, two or three
currencies with the highest (lowest) beginning -
of - month interest rates and hold to maturity.
In their August 2017 paper entitled «The Value
of Volume in Foreign Exchange», Antonio Gargano, Steven Riddiough and Lucio Sarno investigate whether
currency trading volumes (including spot, swap and
forward) exploitably predict
currency returns.
The traders who are looking
forward towards the diversification
of their individual financial portfolio with the help
of cryptocurrency
trading, they are going to definitely enjoy the
trading Bircoin, LiteCoin, Ripple and Ethreum and also BTC / USD
currency pairs.
For example, if Bitcoin is not a
currency, then Bitcoin
forwards and Bitcoin swaps that involve the exchange
of Bitcoin for another
currency will not fall under the statutory definitions
of the more lightly regulated foreign exchange
forwards or foreign exchange swaps.10 Likewise, retail
trading of Bitcoin derivatives will be limited to designated contract markets, rather than subject to the retail foreign exchange dealer regulations.11 Treating Bitcoin as a commodity that is not a
currency dovetails with the stances taken by other U.S. regulators such as the Financial Crimes Enforcement Network (FinCEN)(virtual
currency does not have all
of the attributes
of real
currency) 12, the Securities and Exchange Commission (Bitcoin investments are investment contracts because Bitcoin is a form
of money) 13 and the Internal Revenue Service (treating Bitcoin as property for tax purposes).14
Using one - month
forward quotes on the last
trading day
of each month and spot quotes on the last day
of the next month for all G - 10
currencies during December 1984 through June 2014 (354 months), they find that: Keep Reading
The Fund may engage in active and frequent
trading of portfolio securities to achieve its investment objective... the Fund will invest in a portfolio
of securities including: equities, debt, warrants, distressed, high - yield, convertible, preferred, when - issued... options, total return swaps, credit default swaps, credit default indexes,
currency forwards, and futures... ETFs, ETNs and commodities.»
As always, we do not have a point
of view regarding where the dollar will
trade going
forward against foreign
currencies and would caution investors about such views.
Currency risk can be effectively hedged by locking in an exchange rate through the use of currency futures, forwards, options, or exchange - trade
Currency risk can be effectively hedged by locking in an exchange rate through the use
of currency futures, forwards, options, or exchange - trade
currency futures,
forwards, options, or exchange -
traded funds.
There is also the cost
of trading currency futures and
forwards, which have a bid - offer spread like many other securities.
To be treated as a regulated investment company under Subchapter M
of the Code, a Fund must also (a) derive at least 90 %
of its gross income from dividends, interest, payments with respect to securities loans, net income from certain publicly
traded partnerships and gains from the sale or other disposition
of securities or foreign
currencies, or other income (including, but not limited to, gains from options, futures or
forward contracts) derived with respect to the business
of investing in such securities or
currencies, and (b) diversify its holdings so that, at the end
of each fiscal quarter, (i) at least 50 %
of the market value
of a Fund's assets is represented by cash, U.S. government
In an announcement Tuesday, SBI said that, while the new platform — called SBI Virtual
Currencies — has already started offering account registrations to certain priority investors, it will postpone the acceptance
of applications from ordinary customers and thus push
forward the date for the start
of trading.
«I look
forward to this evolution
of digital
currency trading platforms that ensure futures contracts with a physical delivery component,» Matonis told Bitcoin Magazine.
«I look
forward to this evolution
of digital
currency trading platforms that ensure futures contracts with a physical delivery component.
In an announcement Tuesday, SBI said that, while the new platform — called SBI Virtual
Currencies — has already started offering account registrations to certain priority investors, it will postpone applications from ordinary customers and thus push
forward the date for the start
of trading.