Day: 28 November 2016

NFA Shifts FX Margins

The US National Futures Association (NFA) has raised margin requirements on three currencies whilst cutting the margin required on one. The changes apply to NFA registered Forex Dealer Members (FDMs) in the US.
The NFA cites recent volatility in the currency markets as well as the margin increases implemented by exchanges CME and ICE with respect to foreign currency futures involving the Mexican peso, Japanese yen, and New Zealand dollar, in notifying members to raise margins on those three currencies.

FX Regulation: What Traders Need to Know

As 2016 comes to a close the regulatory agenda shows no signs of slowing. While the FX market itself has largely not been directly addressed by new regulations, it has been swept up in many of the broader OTC market reforms.

March 1 will mark the implementation of the variation margin requirements for non-cleared derivatives, meaning that thousands of counterparties – including asset managers, pension funds, insurance companies and hedge funds – will need to change their existing collateral support agreements, or set up new ones, before this date.

Buy Side View: Risk Managing in Extreme Market Conditions

Richard Preschern, CEO of Robosig and Co-Founder at FX Vision, talks to Profit & Loss deputy editor, Galen Stops, about the lessons he’s learnt from recent risk events.

Speaking about the volatility following the Swiss National Banks’ decision to pull its peg to the euro, Preschern comments: “What you understand is that the execution that you get during these events is nothing to do with what you model because the market is simply not there.

“So what you have to do in terms of risk management is look at your extreme points in terms of exposure because you just don’t know that you’re going to be able to get out, which is what causes a lot of wreckage in the market.”

And Finally…

If I were a cynic I would raise a quizzical eyebrow at the timing of the CFTC’s announcement on Friday that it has proposed “supplements” to some of the detail around RegAT. This rule has raised significant controversy over what seemed to be a proposal to have source code stored with the CFTC, but, according to CFTC, apparently it was all a misunderstanding! A cynic would also ask why something that is “misunderstood” needs rewriting of course, but I’m sure we’re above that…

O’Sullivan Joins GTX

Vince O’Sullivan joins Gain Capital’s GTX this week as director of foreign exchange sales in London.
O’Sullivan will have a focus on selling to hedge funds and banks throughout Europe, the Middle East and Africa (EMEA) and reports to John Meisner, global head of sales at GTX.
O’Sullivan was last at Barclays in London where he was a director and head of EMEA distribution for e-FX. He started at Barclays in 1978 as a foreign exchange cashier, before moving onto the FX trading.

Erste Joins TraderTools Network

Erste Group Bank has joined the TraderTools Unique Liquidity Network (ULN) as a market maker in CE3 pairs.
TraderTools says through its existing network of local market making banks in Eastern Europe, Erste will be making markets in Romanian, Czechoslovakian, Hungarian, and Polish pairs.
The firm adds that banks on the ULN have what it terms a strong presence in emerging and local market currencies such as central European, Turkish lira, South African rand, Scandinavian currencies, and the Russian ruble.

ANZ, Macquarie Bank Admit Rate Rigging in Malaysia

The Australian Competition and Consumer Commission (ACCC) has commenced legal proceedings on a consent basis against ANZ and Macquarie Bank in relation to alleged attempts to engage in cartel conduct in FX markets.
The ACCC says that following cooperation by ANZ and Macquarie, the parties have agreed that a Macquarie trader and multiple traders within ANZ engaged in a private chatroom to discuss daily submissions to be made to the Association of Banks in Singapore (ABS) in relation to the benchmark rate for the Malaysian ringgit fixing rate.

Gold-i Launches MT5 Service

Technology provider Gold-I will launch its MT5 Gateway at the end of November, providing brokers using MetaTrader 5 with access to the firm’s MT4 Bridge.
The new gateway launches with access to over 70 liquidity providers, Gold-I says, and provides an integration between retail and institutional financial trading systems.
The MT5 Gateway has been designed to work with Matrix – Gold-i’s modular multi-asset liquidity management platform, meaning brokers using MetaTrader 5 can aggregate incoming liquidity feeds and offer their own liquidity out to clients, providing opportunities for them to diversify, add new revenue streams and reduce risk.