As FX execution becomes increasingly fragmented with more and more trading taking place in dark environments, price discovery is rapidly becoming one of the industry’s key challenges. But can the recent proliferation of new market data offerings from the leading ECNs really help tackle this problem as claimed? Nicola Tavendale writes.
The past year’s run of unprecedented market events has only served to highlight the growing demand for timely and reliable FX market data, yet innovation in this area has notably lagged behind the levels seen in other areas of the financial markets.
As more financial services firms look for ways to utilise blockchain technology within their infrastructures, Galen Stops examines whether the technology is really as safe as advocates claim, following two high-profile hacks earlier this year.
“Cyber and system security is one of the most important issues facing markets today in terms of integrity and financial stability,” said Commissioner Christopher Giancarlo of the Commodity Futures Trading Commission (CFTC) on September 8, when approving system safeguard requirements for derivatives clearing organisations.
Giancarlo is hardly alone in his concerns.
As leverage requirements make FX exposures a bigger pain point for the banks, many are looking towards compression services to solve for this. Galen Stops looks at how these services work and what they could mean for the industry.
One of the responses by global regulatory bodies to the 2008 financial crisis was to require banks to hold more capital against their financial exposures, creating a bigger buffer to protect them against adverse market conditions.
Capital constraints have widely been cited as a reason for declining activity in some markets and liquidity events in other, therefore it is not surprising that compression services, whereby offsetting trades are netted off against one another to reduce the notional amount on banks’ balance sheets, have found favour amongst banks and major dealers.
Humans are curious creatures. We study our environment, consider ourselves in relation to our surroundings, and, uniquely among living things, even ponder our ability to think. Whether we realise it or not, we regard sentience as the crowning jewel of ...
An overall increase in
the number of firms using algorithmic-based trading to execute FX orders was
seen in both Europe and the US in 2015, says a new report from consultancy firm
Greenwich Associates. The company adds in its 2015 Global Foreign ...
As more firms continue coming to market with distributed ledger-based technology solutions, Galen Stops looks at the competitive landscape of this market.
It is perhaps unsurprising, given the amount of hype that has followed distributed ledger technology, that there has ...
Although FinTech is a buzzword, it is not exactly new to FX – so what are the keys to a successful FinTech venture? Colin Lambert finds out.
That unimpeachable source of all facts – Wikipedia – defines “FinTech” thus: “An economic industry composed ...
Galen Stops assesses the FinTech landscape and identifies some of the challenges and opportunities facing these firms.
“FinTech”, the marriage of finance and information technology, has been around for some time. In an academic paper published in October 2015, The Evolution ...
A new paper suggests that shared source code can help deliver an efficient and best of breed “last mile”
check for automated trading systems. Colin Lambert takes a look and talks to the author.
It can hardly be said that ...
Pete Eggleston and Oliver Jerome have established a business to provide independent TCA services. Colin
Lambert talks to the founders of BestX about their ambitions and the challenges associated with being a
service provider in such a subjective field.