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Can the Code of Conduct Help Improve FX Liquidity?

in News, Events

Can the Code of Conduct Help Improve FX Liquidity?

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 of CLS. 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...
Global Code: It’s Good to Talk

in News, Institutional

Global Code: It’s Good to Talk

One of the six principles in the first release of the FX Global Code, released today (May 26 2016) covers information sharing. 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 c...
2016 Winners of “The FoXy’s” Announced

in News, Events

2016 Winners of “The FoXy’s” Announced

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...
Global Code: It Will Have Teeth

in News, Regulation

Global Code: It Will Have Teeth

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...
Update on Implementing the Code

in News, Regulation

Update on Implementing the Code

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. It notes...
The Wait is Over: Code of Conduct (Stage One) Unveiled

in News, Regulation

The Wait is Over: Code of Conduct (Stage One) Unveiled

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...
Tech Corner

in News, Technology

Tech Corner

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 adva...
Injunction Halts Trading at Futex

in News, Buy Side

Injunction Halts Trading at Futex

Trading at the UK-based proprietary trading firm, Futex, has allegedly been halted following an injunction against it, according to market sources. 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...
Yann the Man Quits BNP

in News, People

Yann the Man Quits BNP

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.
CFTC Divided on Cross-Border Margin Rule

in News, Regulation

CFTC Divided on Cross-Border Margin Rule

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...