Citi Cuts FX Ties, ESMA Action Plan, Coronavirus Impact: Editor's Pick

In a week dominated by news of the coronavirus, we take a look at some of the biggest stories in our best of the week segment.

Citi Cutting Ties with Majority of FX Platforms

Finance Magnates reported that Citi is reducing its global ambitions in the foreign exchange (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) space, by shedding nearly two-thirds of the trading platforms it gives currency quotes. Following an earlier review of its operations, the move is part of an effort to cut costs and will mark a big change to its FX business, Citi expects the scale-back to save between $5 million to $10 million annually.

Read more the Citi move here.

A Perfect Currency Storm: Black Monday Rattles FX Markets

The trading week started with a day dubbed 'Black Monday' as the dollar slid to its weakest level since 2016, and the Dollar-yen volatility climbed to an 11-year high. The Euro soared to its highest level since April 2017 against the greenback, and Brent Crude fell over 31 percent, as markets reacted to the effects of the virus.

Read the Finance Magnates analysis on 'Black Monday' here

FX Brokers Warn of Volatility

Even though some FX and CFD brokers enjoyed record trading volumes in February, letters from British spread better IG Group, Switzerland's forex bank Dukascopy, and other firms have warned their traders of difficult, volatile trading conditions in financial markets, especially of the prospect of sharp one-off moves in different assets.

Read more on the FX Brokers Warning here.

CoinPip Shuts Down

Despite reporting strong growth potential, crypto payment provider CoinPip has closed its operations. Its closure comes as the Monetary Authority of Singapore (MAS) is updating its regulatory framework for crypto-related activities, including digital Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term. The move indicates that Coinpop will focus on reviewing license requirements under the Singapore Payment Services Act.

Read more on the CoinPop closure here.

Is Bitcoin's Status as a Safe Haven Over?

In an interesting analysis, Finance Magnates explores whether or not the effect of the coronavirus has confirmed or refuted Bitcoin's status as a safe-haven asset. We addressed the questions that need to be asked in these uncertain times, what really constitutes a safe haven? And what will happen should the virus continue to spread?

Catch up on the Bitcoin safe haven analysis here

ESMA COVID-19 Action Plan

In the wake of the continuing spread of the coronavirus, the European Securities and Markets Authority (ESMA) recommended to financial market participants to get ready to apply their contingency plans. Following a Board of Supervisors discussion. ESMA issued advice and guidance to its members.

Read more of the ESMA COVID-19 action plan here