19:38 May 26th 2016 in
The new Global
Code of Conduct could help improve FX market liquidity, according to Guy
Debelle, FX Working Group (FXWG) chairman and assistant governor of the Reserve
Bank of Australia, and David Puth, head of the Market Participants Group and CEO
Speaking at Profit
& Loss’ Forex Network New York conference shortly after the
Code was released today, the pair claimed that clarity over what is
acceptable market behaviour could benefit market liquidity.
Specifically, they highlighted the principles in the Code
regarding when and how firms can provide market colour as one example of thi...
19:36 May 26th 2016 in
One of the six principles in the first
release of the FX Global Code, released today (May 26 2016) covers information
Broadly speaking, this states: “Market participants
are expected to be clear and accurate in their communications and to protect
confidential information to promote effective communication that supports a
robust, fair, open, liquid and appropriately transparent FX market.”
It is obvious why this topic was included.
What was perhaps slightly surprising though was the way it is being addressed.
As a result of the issue around inappropriate information being shared in
17:00 May 26th 2016 in
Profit & Loss readers cast record numbers of votes for their preferred market makers and service providers this year, and award winners were on hand to collect trophies at the Profit & Loss Hall of Fame & FoXy’s Readers’ Choice Awards luncheon earlier today.
This year, Profit & Loss inducted Citi’s Rafael Quezada into its Hall of Fame. “There are few FX market professionals as respected and admired as Rafael Quezada,” says Profit & Loss’s editor-in-chief, Julie Ros. “I may not have known Rafa as long as others in the industry, but he has truly become one of my favourite people in FX; someone...
15:34 May 26th 2016 in
Before unveiling the Global Code of Conduct (Phase One) for the FX Market at a press conference in New
York, Reserve Bank of Australia Deputy Governor Guy Debelle made it clear why
the new guidelines are necessary.
“Let me remind you why this work is occurring. As I have
stated on previous occasions, the foreign exchange (FX) industry has suffered
from a lack of trust in its functioning….The market needs to rebuild that
trust, so that participants and the public have much greater confidence that
the market is functioning appropriately.”
Debelle says it is in almost universal interest to...
14:20 May 26th 2016 in
You do not have to look at too many participants in the FX
market to find a cynic. So it is not that surprising that there has been a fair
amount of scepticism expressed about how effective the new Global Code of
Conduct, announced earlier today, will prove.
This is mainly because of the obvious difficulty in getting
participants in a truly global market to adhere to its principles when they are
operating across multiple regions and jurisdictions.
But as well as releasing the Code today, the FX Working
Group (FXWG) has also issued an update on how it expects it to be adhered to.
14:00 May 26th 2016 in
The FX Working Group (FXWG), put together by the Bank for
International Settlements, has today released the first stage of the new Global
Code of Conduct.
The Code comprises a set of global principles of good
practice. The intention is that it will provide a common set of guidelines to
promote the integrity and effective functioning of the wholesale FX market.
Today’s release should be seen as an important step in a
much longer process that will, as the FXWG says, lead to a “robust, fair,
liquid, open, and appropriately transparent market in which a diverse set of
market participants, su...
00:53 May 26th 2016 in
A round up of the latest technology news…
CFH Clearing has launched a mobile trading platform, CFH Mobile which has been built
in partnership with NetDania. Notable features on the platform include pattern
recognition, alerts-on-studies, multi-chart interfaces and trading off the
charts. The app also contains news alerts and an economic events calendar and
is available in 15 languages.
CMC Markets has launched new API technology “designed to meet the urgent need for
reliable liquidity among financial institutions”. Richard Elston head of institutional at CMC Markets says, “Technological
21:03 May 25th 2016 in
Trading at the UK-based proprietary trading firm, Futex, has
allegedly been halted following an injunction against it, according to market
Although phone calls to Futex’s UK offices went unanswered, sources
close to the firm say that an injunction has been issued against it, with
trading suspended as a result. The alleged injunction is believed to have been
issued by a trader at the firm.
An injunction means that other traders at Futex will be
unable to trade, withdraw their money or even trade anywhere else because –
even though the traders are technically self-employed – their tra...
12:40 May 25th 2016 in
Well-placed sources suggest that Yann Rousset has resigned from BNP Paribas. Rousset was the bank’s global head of E-FX auto hedging.
It is believed that his role has changed somewhat following BNP’s recent decision to merge its voice and electronic businesses.
The well-regarded Rousset is thought likely to be staying within the industry, which his destination rumoured to be one of the nimble high-frequency firms that appear to be flavour of the month in FX.
BNP Paribas declined to comment.
02:50 May 25th 2016 in
The US Commodity Futures Trading Commission (CFTC) has adopted a new rule for implementing cross-border margin requirements for uncleared swaps (Final Rule), despite being divided on the rule.
Originally published in January, the CFTC’s margin rule applies to CFTC-registered swap dealers and major swap participants for which there is no prudential regulator (collectively, covered swap entities or CSEs).
The Final Rule is closely aligned with the cross-border margin requirements already adopted by the prudential regulator and generally requires CSEs to comply with the CFTC’s margin requireme...