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New Platform Promises to Solve “Major Problems” in Cryptocurrency Markets Hong Kong-based OpenANX, a new real-world application of decentralised exchanges built on the Ethereum blockchain, says it has developed key technical aspects that will tackle two major problems in the cryptocurrency space – the barrier to entry for new cryptocurrency users, and risks associated with many transactions. The new platform says it will allow new market entrants to easily enter the space and to understand their exposure to risk on any potential deal, a feature that’s lacking in current exchanges.
Report: Top Dealers Loosen Grip on FX Market (Slightly) The top five FX dealers are losing market share, according to a new report from Greenwich Associates. Although the world’s five biggest FX dealers still capture a massive 44% of global market share in aggregate, according to the research, that proportion is down from 48% last year and from 53% in 2013. The report identifies several trends that are driving these changes. It says that while top-tier dealers have been narrowing the scope of their product, regional and client coverage, FX investors continue to increase their trading via multi-dealer platforms, which create a more level playing field for liquidity providers.
Jefferies Adds Three to its FX Team Jefferies has hired Michael Porzio as SVP, head of e-FX product, Bryan Seegers as SVP, quant relationship management, and Patrick McInerney, SVP, sales trader. All three will be based in New York and will report into Ray Kamrath, global head of FX at Jefferies. Porzio started his career in financial services when he joined Merrill Lynch in 2005. Following the acquisition of Merrill Lynch by Bank of America, Porzio was made regional lead, VP of e-FX client services in 2010 of the newly minted Bank of America Merrill Lynch (Baml). In 2012, he was named as VP, e-FX sales, America at the bank.
Survey: Asset Managers Uncertain About Mifid II Rules new rules, according to a survey by the Alternative Investment Management Association (AIMA). Fund managers globally that responded to the survey said that their biggest challenge regarding Mifid II is uncertainty about what the rules contained within the regulation actually mean – both their scope and substance – as well as what they perceived to be a lack of clarity relating to the cost and nature of services provided by brokers. The survey showed that 34% of alternative asset managers are undecided about how they will pay for research following the implementation of Mifid II. Of those that have made decisions around how to pay for research, 80% plan to charge investors and the remaining 20% intend to absorb the costs themselves.
Ktorza Ruling Overturned A UK appeals court judge has decided that former JP Morgan FX salesperson Patrice Ktorza’s case must be reheard by an employment tribunal. In a judgement, Judge David Richardson accepted the bank’s claim that the original judge who head the case had adopted “a legally incorrect” approach to the law and “disregarded or misunderstood” important aspects of JP Morgan’s case. Ktorza won his claim for unfair dismissal in August 2016, however Profit & Loss noted at the time that the case was “tricky” because it involved the subject of partial fills of client orders.
Predicting the Impact of Brexit Speaking at the Commodity Futures Trading Commission’s (CFTC) Market Risk Advisory Committee (MRAC) meeting today in Washington, a range of market participants weighed in on the expected impact of Britain’s exit from the European Union Eileen Kiely, director at BlackRock, said that markets are currently in a period of low volatility – both implied and realised across asset classes globally – and that she does not expect Brexit to disrupt this trend. This is in part because Kiely believes that markets are currently pricing the risks associated with Brexit appropriately.
Bowen to Leave the CFTC Sharon Bowen is leaving her position as a Commissioner at the US Commodity Futures Trading Commission (CFTC). Bowen was sworn in as a Commissioner at the CFTC on June 9, 2014, for a five-year term. Bowen chairs the CFTC Market Risk Advisory Committee (MRAC), and at a meeting of MRAC today, explained why she intends to leave her position at the CFTC two years before her term expires. “With the departure of Chairman Massad, the work of this agency has been hampered by only having a two-person Commission, when we should be a five-person Commission. In fact, we have not been a five-person Commission since the departure of Commissioner O’Malia in 2014.
Curex Rolls Out Microsecond Timestamps Cürex Group is introducing microsecond timestamp confirmations for its clients’ trading activity. In a release issued today, the firm says that the rollout underscores the firm’s mission to support the best execution standards required under Mifid II, which will take effect in January 2018. In addition to these timestamp confirmations, the post-trade analytics allow its customers to “walk the book” backward and forward by the microsecond to study the market before execution and after to try and gain deeper insight into their trading impact.
Carney Speech Prompts Sterling Slide The value of sterling slid today as Bank of England (BoE) Governor, Mark Carney, indicated that there would be no immediate adjustment of monetary policy by the central bank. In a speech delivered at Mansion House in London, Carney declared that “now is not yet the time to begin” monetary adjustment, ruling out the possibility of an interest rate hike. GBP/USD promptly dropped from 1.2753 at 8am BST to 1.2631 just before 3pm BST in response to Carney’s comments. “Since the prospect of Brexit emerged, financial markets, notably sterling, have marked down the UK’s economic prospects.
Sucden Implements SmartTrade’s FX Platform Sucden Financial has implemented SmartTrade Technologies’ fully hosted FX solution, LiquidityFX. LiquidityFX will provide Sucden with connectivity to multiple liquidity providers, aggregation, order routing, pricing and distribution, as well as a fully integrated order management system. SmartTrade is also providing Sucden with its LiquidityFX credit margin module, which is designed to allow end clients to trade larger amounts and leverage their cash margin while enabling Sucden to monitor and manage their risk coverage in real time. “SmartTrade were well placed to provide us with the necessary tools to help us accomplish our expansion plans.” comments Wayne Roworth, co-head of e-FX at Sucden.