Day: 1 May 2015

The Last Word- May/June 2015

Probably the column that generated the most feedback over the past month or so was one that described how the regulators could be pushing the industry to a bifurcated model, wherein one segment – largely professional traders – trade in an all- to-all, anonymous environment, while the other operates in a bilateral, one-to-many environment. My point […]

Swings and Roundabouts: Comparative Bank FX Revenues in Q1 2015

FX trading revenues rose in Q1 2015 almost across the board, albeit with a few notable exceptions. But how far has an increase in market volatility helped to offset the rising cost of regulatory investigations into FX malpractice across the leading banks? Nicola Tavendale finds out. The removal of the EURCHF floor by the Swiss […]

Debate Rages Over CCP “Skin in the Game”

The heat is being turned up in the debate over who should be responsible for potential defaults by clearing house members. Galen Stops takes a look at the issues. The “Skin in the game” (SITG) debate, i.e., how much capital central clearing counterparties (CCPs) should be forced to hold against the possibility of a member […]

A Brave New World for Exchanges?

With a number of exchange groups making a push into the FX market, Galen Stops looks at some of the opportunities and challenges for them in this asset class. In the past 18 months there has been a conspicuous push from exchange-traded  platform operators into the FX market. In July 2014, Eurex launched its first […]

A New Approach to Hedging EM Currencies

Is volatility about to unleash on the EMs? Joy Macknight takes a look. Emerging markets currencies are getting a lot of attention lately, as the market waits with bated breath for the US Federal Reserve to begin unwinding quantitative easing. Market volatility may be just around the corner, with EM currencies expected to be the […]

Committees Discuss January 15

The minutes from the recent joint meeting of the world’s eight foreign exchange committees in Tokyo hint at participants’ concerns over the impact of regulation and electronic trading on FX market liquidity, and high frequency traders were highlighted for their potential role in events on 15 January. As part of what the minutes describe as a […]

FX Committees Release Global Preamble

At their recent joint meeting in Tokyo, the global FX committees agreed and released new guidance for market participants, as Colin Lambert reports.  With conduct so high on the FX industry’s agenda, representatives of the eight global FX committees met in Tokyo in late March to agree upon a combined global code of conduct for […]

Case Study: A Bank’s Solution for the Fix

The FX Benchmark Group’s recommendations last year triggered change. WM Company, after a brief delay, introduced a new fixing process on February 15 and several banks released an algorithmic execution strategy for customers seeking to execute at the London 4pm Fix. Credit Suisse was one such bank. “We were involved early in the discussions around how […]

Is the Wait Over For Useful Social Media Information Discovery?

US-based social media information provider Dataminr is the latest entrant aiming to overcome a number of the challenges associated with disseminating the flood of data from various sources, including Twitter, to assist with trading decisions, writes Nicola Tavendale.   There are 350-400 million people in social media talking about events as they happen, according to […]

A Cautious Thumbs Up: So Far So Good for WMR Fixing

The FX industry has passed some significant milestones in its efforts to reform how it operates benchmark fixes, but as Colin Lambert reports, it is still early days. For more than two years now the foreign exchange industry has been embattled by allegations surrounding certain dealer activity at benchmark fixes. These allegations have seen banks […]