Month: January 2015

And Another Thing…

I understand the debate around last look is complex and multi-dimensional, however I think we are seeing, in front of our very eyes, the ultimate in last look. People often ask me why I am against last look in foreign exchange, and my answer is simple enough – I guess it is because I am […]

Oversight Failure in FX is Changing How Banks View Risk

The failure of banks to effectively monitor human communications around FX trading is having far-reaching consequences for the industry, according to market experts. In a webinar earlier this week, “The FX Crisis: Dealing with Human Risk and Restoring Trust within the FX Market”, speakers outlined how it was this failure that was largely responsible for […]

FX Market Manipulation Case Allowed to Proceed in US Courts

A US judge says that investors may pursue their antitrust litigation against 12 major banks alleging that they manipulated the foreign exchange market. The banks attempted to have the lawsuit dismissed, arguing that the complaint shows no evidence of “actual harm in real trades in specific currencies on particular days”. But US District Judge Lorna […]

Retail Landscape Continues to Shift Following SNB Move

The fallout from the Swiss National Bank’s (SNB) decision to drop the EUR/CHF peg is continuing in the retail FX market, as a further two brokers cease trading, more losses are reported and firms consider purchasing their damaged competitors’ businesses. This week, UK-based Liquid Markets (LQD) ceased operations after it says it was experiencing “trading […]

Saxo Expecting Legal Challenges to Re-Pricing of Trades

Retail broker Saxo Bank is anticipating legal disputes following its decision to retroactively re-price FX trades that occurred during the Swiss franc’s volatile swing on 15 January. Saxo didn’t honour the close out positions but instead reset the price of the positions the next day, at a significantly unfavourable rate. The bank posted a statement […]

BATS Agrees $365 Million Deal for Hotspot

BATS Global Markets has agreed to buy KGC Hotspot from its parent company, KGC Holdings, for $365 million in cash. The deal, which Profit & Loss reported earlier this month (Squawkbox, 19 January), is expected to be completed in the second quarter of 2015. Under the terms of the agreement both sides of the deal […]

Currency Trading Hits New Highs in UK and US: FX Committee Surveys

Foreign exchange trading activity in the UK and US rose to record levels in October, reports from the nations’ central bank FX committees show, on the back of increased volatility that was largely triggered by a divergence in monetary policies. Average daily currency turnover in the UK rose to a record $2.67 trillion, up 11% […]

The FX Crisis: Dealing with Human Risk and Restoring Trust within the FX Market

In association with Digital Reasoning Systems.As the financial services industry looks to recover from the recent FX crisis and restore trust within the FX markets, banking executives are under pressure to fully understand the risks inherent within their organization. Beyond market, credit and trading risk – human risk is quickly becoming the single largest exposure […]

And Finally…

Any time there is a market event, it is used by people for their own ends. It happens, but it is not particularly helpful at a time when we may need serious, open-minded and honest debate over what happened. Following the Swiss episode I have received plenty of correspondence from people telling me how their […]

Tech Corner

LMAX Exchange has partnered with GMO-Z.com Trade UK, a member of the Japan-headquartered GMO Click Holdings group of companies, to provide Z.com Trade clients with access to its non last-look liquidity and execution. By matching buyers with sellers within an anonymous non last-look execution venue, LMAX says it will offer Z.com Trade clients transparent price […]