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Fed’s Dudley: Evidence on Liquidity Deterioration “Mixed”

in News, Regulation

Fed’s Dudley: Evidence on Liquidity Deterioration “Mixed”

Federal Reserve Bank of New York President William Dudley has told a gathering that “the evidence that market liquidity has diminished is mixed”. Speaking at a Federal Reserve Bank of Atlanta event over the weekend, Dudley, who framed his remarks with the regular central banker caveat that they reflected his own view and not necessarily that of the Fed, told attendees that while some market liquidity metrics have not changed much in recent years, these metrics “do not tell the whole story”. He noted that quoted bid-ask spreads in the US Treasury inter-dealer market have remained stable since...
Vote Now in the 2016 FoXys

in News, Events

Vote Now in the 2016 FoXys

There is just over a week left for you to register your vote in the 2016 Profit & Loss Readers’ Choice Awards – the FoXys – as voting closes on May 11. To make your voice heard over the relative offerings available in the industry click here to vote in the FoXys. At the same time, Profit & Loss is keen to hear your view as to who should be inducted into the Hall of Fame as part of the class of 2016.  Suggestions are welcome and can be submitted by clicking here.
US Places Five Countries on FX Monitoring List

in News, Around the World

US Places Five Countries on FX Monitoring List

The US Treasury has named five nations on a “monitoring list” for exchange rate manipulation in a new semi-annual report, including, a little bizarrely, Germany. The new report, Foreign Exchange Policies of Major Trading Partners of the United States, is the first under the auspices of the Customs Bill, which, the Treasury says, provides the US with “valuable new reporting and monitoring tools, as well as new measures to address unfair currency practices”. The criteria for assessment are (1) a significant bilateral trade surplus with the US, (2) a material current account surplus, and (3) en...
Volumes Recover…Slightly

in News, Brokers

Volumes Recover…Slightly

The first batch of platforms to report April volume data have seen slight increases from March 2016, no doubt helped by volatility late in the month in the yen, however the picture on a year-on-year basis is more mixed. Bats’ HotspotFX reports average daily volume (ADV) of $25.6 billion, a fraction higher than March $25.5 billion but lower than April 2015’s $28.4 billion. Hotspot closed out the month strongly with the last three trading days all reporting ADV above the $30 billion mark. FastMatch also ended April strongly, the last three days being the highest for the month. Overall ADV on F...
Currency Managers Flat in March

in News, Buy Side

Currency Managers Flat in March

The Parker FX Index fell by 0.03% (-0.02% on a risk-adjusted basis) in March with 28 of the 31 programmes in the Index reporting results. The flat overall result hides come volatility of returns, however, with the performance range being +6.23% to -4.70% – the median return was -0.33%. Systematic traders outperformed discretionary in March, the Parker Systematic Index was up 0.05% and the Discretionary Index was down 0.12%. On a risk-adjusted basis, the Systematic Index was up 0.02% and the Discretionary Index was down 0.09%. The Parker FX Index is the first to analyse unleveraged (risk-adju...
More Pain for Mrs Watanabe

in News, Around the World

More Pain for Mrs Watanabe

The legions of Japanese retail investors holding onto the carry trade, dubbed the Japanese housewives or Mrs Watanabes, faced more pain on Friday – a Japanese holiday – as USDJPY slumped to a new low for the year, indeed its lowest level since October 2014. USDJPY broke through Thursday's low just above 107.80 before dropping sharply to 107.10 as Asian traders, thinned by the Japanese holiday, triggered yet more stops from Japanese retail traders. In Europe later the pair fell further to 106.20. The pain compounds yesterday’s wound inflicted on the carry trade by the Bank of Japan’s surprise...
Fleschler Named Seabury Global Markets CEO

in News, People

Fleschler Named Seabury Global Markets CEO

Seabury Group has announced the formation of Seabury Global Markets, which it says will “conduct fintech product and solution sales, marketing and distribution within the international financial markets”. The new group will be led by Rob Fleschler as president and CEO. Fleschler, who has been serving as senior advisor to Seabury Asset Management, will report to Margaret Chan, CEO, Seabury Asset Management and global head of specialists funds and financial solutions. Prior to joining the Seabury Group, Fleschler held sales, trading and management positions in the US and abroad, including at JP...
Bruce Jumps from EBS?

in News, People

Bruce Jumps from EBS?

It looks like it could be one in and one out at EBS BrokerTec. A mere couple of weeks after it hired Mark Bucaj as product director, well-placed sources say that EBS BrokerTec has now lost Mark ‘Speedo’ Bruce, whose title was head of product. The well-regarded Bruce was a professional triathlete in his younger days. But rather than swimming, running or cycling away from EBS, which he joined as a graduate trainee in 2009, sources say he has ‘jumped’. This may or may not be a pun on his next destination – Bruce is believed to be off to join an algorithmic trading operation. EBS has decline...
BNP Hires Goldman Face

in News, Banks

BNP Hires Goldman Face

BNP Paribas has hired Cyril Cottu from Goldman Sachs, where he was head of the FICC EMEA sales middle market initiative. Starting in July, Cottu will assume a senior role in the bank’s eCommerce business, reporting to Rudi Collin, BNP Paribas’ head of digital transformation. Cottu can be considered as a pioneer of FX eCommerce. He joined Goldman in 1998 and as P&L reported back in 2009, he was “ key to building the bank’s global FX e-commerce strategy”. In 2006, he was named head of Goldman’s property derivatives business and from 2008 until 2010, he ran macro rates sales for France, Belg...
UK Leapfrogs Singapore in RMB Clearing

in News, Exchanges & Clearing

UK Leapfrogs Singapore in RMB Clearing

According to Swift’s latest RMB tracker, the UK’s RMB payments value increased by 21% between March 2014 and March 2016, it as the first offshore RMB clearing centre after Hong Kong. Being the second biggest is not as important as it sounds, however, for the UK is the small matter of 66% behind Hong Kong. Singapore overtook the UK in February 2014, but the trend started to reverse as of January 2016, Swift says. Hong Kong still remains the world’s largest offshore RMB centre, processing 72.5% of all RMB payments, followed by UK with a share of 6.3% and Singapore with 4.6%. Swift data also s...