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Shafik Calls for “Ethical Lift” Outgoing deputy governor of the Bank of England, Manouque Shafik has called for a move from what she terms “an ethical drift” to an “ethical lift”. Speaking at the New York Fed conference on conduct and behaviour, Shafik accepted that misconduct in financial markets is nothing new, but argued the wave of misconduct which has emerged in the aftermath of the financial crisis is different. She highlighted the benefits of the UK's blend of "hard law" and "soft law" when establishing a compliance framework.
Dudley Repeats Call for “Banker Database” The president of the Federal Reserve Bank of New York, William Dudley, has reiterated his call for a database of banker misconduct that will “stop rolling bad apples”. Speaking to open a New York Fed conference on culture and behaviour in financial services, Dudley, who was expressing his own views, observed that the evidence is pervasive that deep-seated cultural and ethical problems have plagued the financial services industry in recent years. He further hinted that the industry needs more than principles to reform conduct and that any guidelines need teeth.
New Study Highlights Hedge Fund Tech Spending Hedge fund managers are increasing their investment in technology to create competitive advantages and address regulatory and operational concerns, according to a new study by KPMG International, the Alternative Investment Management Association (AIMA) and the Managed Funds Association (MFA). The study polled more than 100 global hedge fund managers representing approximately $300 billion in assets under management (AUM) and found that 90% of these firms are investing in technology to improve controls and compliance. A similar amount, 88% of respondents, said that efficiency objectives were their top reason for investing in technology.
Underwood FX Expands Offering Underwood FX has announced two new partnerships and a new hire in a bid to expand the expertise that the consulting firm can offer. Barclay Leib of Sand Spring Advisors has partnered with Underwood FX to provide alternative asset consulting and securities law violation investigative intelligence. Additionally, Jennifer Ropiak of Trusted Partner Metals has begun working collaboratively with the firm by providing experience in precious metals market structure, trading, and product development. Underwood FX has also hired Andrew Beresin, a practicing NY State attorney that specialises in legal matters including regulatory inquiries, investigations, and enforcement defense.
UK SMEs Unprepared for Impact of Brexit on FX Costs UK small- and medium-sized businesses (SMEs) remain exposed and unprepared for the economic impact of the Brexit vote on their FX costs, according to a survey by EarthportFX, a cross border payment network. Despite the fact that 77% of survey respondents acknowledged the need to change their approach towards foreign exchange hedging in the face of highly volatile currency markets and the depreciation of the pound following the UK's decision in June to leave the EU, 80% admit they have made no changes to their hedging strategies.
Pragma Completes Migration to NY5 Pragma has completed the upgrade and migration of its New York trading and connectivity infrastructure to Equinix’s NY5 data centre. The data centre move concludes what Pragma says has been a multi-million-dollar upgrade of its technology infrastructure. Over the last year, it has migrated to a new server and network equipment in a bid to provide its algorithmic trading clients with greater performance, capacity and operational resiliency. David Mechner, CEO, comments: “Pragma provides enterprise outsourced algorithmic trading solutions to banks, brokers and asset managers. Trading institutions operate in a cost-conscious environment, yet competitive forces require them to continually invest in hardware, as well as software and algorithms.
Edgewater Continues to Build with COO Hire Edgewater Markets has hired Imran Mahar as its new chief operating officer. Based in the New York headquarters, Mahar will be responsible for managing the company’s day-to-day operations globally, reporting directly to Skovran Schreder, co-founder and CEO of Edgewater Markets. Prior to joining Edgewater, Mahar spent six years with BNP Paribas New York as their director of global prime services, managing an intraday risk team covering, FX, commodities, OTC clearing and listed derivatives. Before BNP, Mahar was part of AIG Financial Products and AIG Trading as a vice president of FX sales and trading for 12 years.
Duco Streamlines Fee Processes for CME Members Duco Technologies will offer its data control and reconciliation services to CME Group members starting January 2017, the two firms announced. The launch follows a six-month trial period with a limited number of futures commission merchants (FCMs). Duco's service is designed to enable CME member firms to simplify processes around fee structures without investing in infrastructure or IT resources. CME chief commercial officer Bryan Durkin comments: "We're pleased to offer our member firms an innovative solution to help streamline their current fee processes. Duco's service will reduce manual work, drive efficiency and ensure accuracy between parties."
CFH Systems to Acquire JV Partner in China CFH Systems, which produces online trading services for financial institutions primarily for FX and CFDs, is set to acquire Capital Market Automation Provider's (CMAP) 49% stake in its organisation. CFH formed the joint venture in November 2015, but now says that it has the infrastructure and local market knowledge to continue developing the company alone. Announcing the launch last year, CFH Systems said it formed the joint venture with CMAP to “accelerate market penetration in China”. At the time, the firm said the partnership offered institutional clients the benefits of CFH’s ClearVision technology, combined with CMAP’s local network infrastructure and specialisation in MT4-hosted services.
Thomson Reuters Sees Sterling Volumes Boost from Flash Crash Thomson Reuters says its sterling volumes trebled on October 7, the day of the Cable flash crash which saw the pair drop from above 1.25 to below 1.15 before recovering to 1.24. The company does not break down its volume data by product or currency on a daily basis and provides no further details, however this would appear to be further evidence of the phenomenon in FX markets whereby dealers typically head to the major matching venues of EBS Market and Thomson Reuters Matching when markets get hectic.