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CME to Add New Triangulation Products CME Group will expand the number of FX products it offers triangulation functionality in on May 14 Contracts in premium quoted (PQO) and volatility quoted options (VQO) on yen, sterling and Swiss franc futures will be available on that day (for trade date May 15) and the exchange is planning to go live with euro and Canadian dollar options on June 18 for June 19 trade date. Triangulation links the books via implied calculations, combining premium quoted orders with futures orders to create and post implied volatility into the volatility quoted book.
Bank of England Releases Money Market Code of Conduct The financial markets industry has another code of conduct to confirm with after the Bank of England released its new, voluntary, UK Money Markets Code, which sets out the standards and best practice expected from participants in the deposit, repo and securities lending markets. The Code is underpinned by the key principle that participants should always act in a manner to promote the integrity and effective functioning of these markets. It also outlines six high-level principles encompassing: ethics, governance, risk management, confidentiality, execution and settlement.
Fenics Adds Two to its Americas Team Fenics Market Data, which is owned by brokerage firm BGC, has added two new members to its Americas team, both based in New York. Damien Fitzpatrick joins BGC as head of sales, Fenics Market Data, for the Americas, reporting to Elliott Hann, Fenics Market Data's director of sales. Fitzpatrick joins from Icap, a subsidiary of TP Icap, where he was most recently head of sales and business development for Asia Pacific. Prior to that, he worked at Thomson Reuters in various commercial roles in New York, London and Singapore.
Hotspot Names New Head of FX Liquidity Analysis Hotspot has appointed Jon Weinberg as head of FX liquidity analysis. Weinberg will move into this newly created role from UBS, where he was head of liquidity management within the bank’s FX e-trading group. At Hotspot, he will be responsible for creating data analytics aimed at enhancing the trading experience of Hotspot’s customers. Based in London, Weinberg will report directly to Bryan Harkins, head of US equities and global FX at CBOE, which recently acquired Hotspot’s parent group, Bats Global Markets.
De-Mystifying Blockchain Speakers at Profit & Loss’ Forex Network London tried to “de-mystify” blockchain technology as they talked about its practical applications within the financial services industry. Andy Coyne, CEO of Cobalt DL, explained that when he first began looking at how blockchain technology could be applied to post-trade FX he found that there was a lot of noise and hype around the technology, but that there was a dearth of companies actually ready to implement it in a practical manner. Coyne said that he looked at the issue that his firm was trying to solve, which was how to reduce cost and risk in post-trade processes, and then started examining if and how this technology could help.
London Retains Number One RMB Spot London remains the dominant offshore centre for RMB FX trading and payments according to the latest RMB Tracker from Swift. The Swift report focuses on the City of London as an offshore RMB hub and includes statistics and analysis for the first three months of the year as well as insights about the RMB and the state of play in London’s FX market. As of March 2017, Swift’s data shows that 36.3% of the RMB FX transactions (excluding China) are conducted with the UK.
Squarepoint Capital Expands Agreement with Kx Squarepoint Capital, a global systematic investment manager, has significantly expanded its use of Kx technology for investment research, according to Kx Systems, a subsidiary of First Derivatives. The firm is using Kdb+, Kx’s time-series database, which is used for trading and risk management platforms and Kx says that as faster large-memory servers are becoming standard, investment managers like Squarepoint are designing their systems to capitalise on the extra speed available when analysing the vast data sets that underpin their investment models.
CFTC Adds 71 Names to RED List The US Commodity Futures Trading Commission has more than trebled the number of names on its Registration Deficient (RED) list of unregistered foreign entities that the CFTC has reason to believe are soliciting and accepting funds from US residents at a retail level for, among other things, trading in binary options or FX and who are required to register with the CFTC but, in fact, are not registered. CFTC has added 71 names to the list that previously contained 30 firms, the full list can be found at www.SmartCheck.gov/REDList.
CTAs Challenged by Divergent Trends Managed futures traders lost -0.44% in March, according to the Barclay CTA Index, which is compiled by BarclayHedge. Year to date, the Index is currently down -0.75%. Due to divergent trends, four of Barclay’s CTA indices recorded gains in March, while four had losses. The Currency Traders Index was up 0.65%, Agricultural Traders gained 0.58%, Financial/Metals Traders were up 0.37%, and Discretionary Traders added 0.16%. In the loss column, Diversified Traders were down -1.15%, and Systematic Traders gave up -0.68%.
Redline Relocates Lau for European Sales Role Redline Trading Solutions has named Patrick Lau as its director of EMEA sales, relocating him from his previous sales role in New York to London. “Patrick’s success at Redline in building collaborative relationships with leaders of global banks provides a strong foundation for his promotion and relocation to London,” says John Hanna, VP of sales. Alongside Dave Carson, who leads field engineering for EMEA, Lau will be tasked with leading a team aimed at expanding adoption of Redline’s solutions throughout European markets that include market data software, enterprise data distribution, order execution engines, and infrastructure-as-a-service offerings.