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Euronext and FastMatch: the Perfect Combination? As reported earlier, European exchange group Euronext is buying a majority stake in FX ECN FastMatch. Not only is this a deal that has long been rumoured (only the identity of the buyer was unknown) it also appears to be a deal that makes a great deal of sense. Euronext is buying a 90% stake in an FX ECN that is seeing tremendous volume growth – the first four months of 2017 have seen average daily volume of $18.1 billion compared to $11 billion the same time in 2016 – and FastMatch is gaining access to a potentially huge distribution network.
Hotspot: A Fresh Approach Following hot on the heels of its second ownership change in a relatively short time, Hotspot is maintaining the momentum of change by launching new products, specifically outright deliverable forwards. It has also announced a raft of new hires and sought to broaden its geographical footprint. Galen Stops speaks to senior staff at the platform about what these changes - which include the addition of non-deliverable forwards to the platform - are building towards, as well as their view on the changing FX market structure.
Why Have FastMatch Volumes Spiked? There have been some raised eyebrows in the FX industry recently amongst those that have noticed FastMatch’s sudden spike in volumes. Profit & Loss has previously noted FastMatch’s strong start to the year in terms of average daily volumes (ADV), highlighting that in March it reported an ADV of $19.2 billion for the month, a new record high and almost double the $10.1 billion ADV it registered in March 2016. Then in April it set another high water mark in ADV terms, eclipsing March’s record with ADV of $19.8 billion in April, up 83.3% from April 2016.
EBS BrokerTec Leverages New Yuniti Platform to Make a Play in Asia Following a deal inked in mid-2016 with China’s CFETS for electronic execution services in mainland China, EBS BrokerTec has been actively expanding its footprint and relocating key staff to the region. P&L’s Julie Ros talks with Jeff Ward, global head of EBS Direct and head of EBS BrokerTec in Asia, about the moves. Recognising the potential for growth across Asia Pacific, EBS BrokerTec embarked on a growth plan for the region nearly a year ago, as the company was working on a deal
Mapping Out the Plan Neill Penney, co-head of trading at Thomson Reuters, talks to Galen Stops about the recent changes in the firm’s FX business and details how it plans to continue developing it in 2017. There were some significant changes to Thomson Reuters’ FX business in 2016, with one of the most visible being the departure of Phil Weisberg in November, who had headed the FX business at the firm since 2012. With Weisberg leaving “to pursue opportunities outside the firm”, Thomson Reuters has re-structured its management, introducing a new business unit called Trading.
FX Platforms: Optimism Abounds for 2017 Galen Stops looks back at how the OTC FX platforms fared in 2016 and talks to them about their strategic plans for 2017. Speaking to platform providers at the end of 2015 about their prospects for the next year, they were all fairly bullish that a period of subdued volatility, and subsequently trading volumes, was about to come to an end. And on the surface, the reasons they cited for this optimism were logical. The US Federal Reserve had just approved a quarter-point increase in its target funds rate, the first change in rates since 2009 and the first increase since 2006. Many hoped that further rate increases were coming and that interest rate differentials might start to produce trading opportunities and therefore lift FX volumes.
Hybrid FX Options Trading: Best of Both Worlds? In August, Tullett Prebon announced a partnership with GMEX group to develop a hybrid voice and electronic trading platform for trading FX options. But what are the drivers behind such a deal and can it really give Tullett an edge in today’s electronically traded markets? Nicola Tavendale writes. Despite a 24% decline in average daily turnover since 2013, global trading volumes in FX options remain significant at $254 billion, according to the most recent Bank for International Settlements (BIS) survey.
What Nex for EBS? As EBS BrokerTec prepares for the departure of a CEO that has driven so much change at the firm and its transition to being part of Nex, Galen Stops looks at the firm’s evolving role and identity within the FX market. News that Gil Mandelzis, CEO of EBS Brokertec, is stepping down from the role has triggered the usual speculation over a successor and the business conditions the next CEO will face. Without doubt, the next head of EBS will be taking the reins of a very different company to that inherited by Mandelzis.
XTX Joins 360T: A Sign of Things to Come? The news, reported last week by Profit & Loss, that XTX Markets has joined 360T’s platform as a streaming liquidity provider, has raised a few eyebrows in the FX market. Given that 360T is generally perceived to be an FX ...
JP Morgan’s rejuvenated single dealer offering is nearing completion, but as Colin Lambert finds out, the journey to this point has taken a different course to most offerings. The story of platform development within the e-FX banking industry over ...