My second Irrational award is an old favourite – the Regulator of the Year – however it has to be whispered that the ammunition isn’t quite there in the quantity it used to be. The CFTC in particular, which has always been a favourite hunting ground for this column, has become particularly sensible since the change of leadership when discussing the appropriate level of market regulation. Thankfully, there are, however, still moments when regulators do something that makes you scratch your chin.
At the moment it seems as though literally half the people that I’m speaking to just want to talk about bitcoin, while the other half just want to complain that no one wants to talk about anything except bitcoin.
But all this hype actually could cause problems for bitcoin going forward. For one thing, speaking to the exchanges and other mainstream financial services firms about why they’re launching bitcoin products, the answer is invariably some version of “well there’s tons of client demand for exposure to bitcoin”.
LMAX Exchange CEO, David Mercer, explains that some market participants need to take a deeper look at their FX execution in order to improve it.
Discussing the findings of a whitepaper published by LMAX Exchange earlier this year, Mercer says that too often buy side firms only look at fill ratios and spreads to judge their execution quality.
Instead, Mercer advocates using five key metrics provided by each liquidity provider and trading venue being used by that trading firm to judge execution quality.
And so to the first Irrational of 2017 and we kick off with a new category – I had to, some of the old ones were very boring in 2017 – my Entertainer of the Year.
In years gone by this would, no doubt, have been awarded to a voice broker who ensured I drank my bodyweight in beer at least once a month, but thankfully the world has moved on from those days (my body weight has certainly increased as well).