Global FX e-Commerce Risk Manager, JP Morgan
“Work Ethic and Vision”
Stephen Flanagan’s career should be held up as the textbook example of the successful evolution of FX. Having come to banking in 1979 – he celebrates 40 years with JP Morgan next year (certainly one of the most tenured individuals in the bank we’re told) – his career evolved from the traditional, spot voice trader, to taking a lead role in the development of electronic trading at one of the industry’s premier FX firms.
Although there are clear drivers pushing more FX products into central clearing, this is unlikely to have a significant impact on market structure, says Paddy Boyle, the head of ForexClear, LCH.
“The pressure to clear for banks that are subject to bilateral initial margin rules is very, very high and we have banks who tell us they’ve been cut off by other banks because they weren’t clearing,” he says.
That, explains Boyle, is one of the negative drivers towards central clearing, while on the positive side there are lower capital costs, lower initial margin requirements and fewer credit line restrictions for firms that choose to use clearing services. As a result, Boyle predicts that cleared FX volumes will increase “pretty significantly” going forward.
We all know technology has changed the FX industry, but the reality of the modern foreign exchange market is that the underlying function is the same as it has always been - it just takes place, largely, on a different median. Over the past five years or more, however, there has been a much more fundamental and potentially serious change in the industry - the relationship dynamic is very different and continues to be under threat thanks to regulation and ridiculous attitudes.
Join members of the Foreign Exchange Professionals Association (FXPA) on Wednesday, May 30, for a webinar on the “FX Global Code: One Year Anniversary – Where are We?” at 10am (Eastern US)/3pm (UK)/10pm (Singapore).
This webinar, hosted by the FXPA, takes a look at how firms are approaching adherence to the FX Global Code of Conduct in the FX markets, which was released on May 25, 2017.
Join FXPA’s chairman, Chip Lowry, senior managing director of State Street Global Markets; David Puth, vice chair of the Global Foreign Exchange Committee and CEO of CLS Bank International; Lisa Shemie, FXPA board member and chair of the policy committee, and associate general counsel, chief legal officer of Cboe FX Markets and Cboe SEF at Cboe Global Markets; and Mark Bruce, FXPA’s chair of the Global Code Working Group and head of FICC at Jump Trading.