Month: December 2016

FastMatch Adjusts Fees for 2017

FastMatch is making a number of changes to its fee schedule, effective February 1, 2017.

In a note to clients, the ECN outlines the major changes to its currency fee schedule, including extending its offer of free trading for clients that add liquidity on FastMatch’s central limit order book and are willing to trade with everyone on the platform.

FastMatch is also changing the threshold required for its clients to achieve the $2.50 per million pricing tier. Under the current free structure “clients trading more than ADV USD 1 billion or equivalent notional per billing month or 10% of single counted volume of the platform (whichever is less)”, are charged $2.50 per million.

NEX Completes Sale of Voice Broking to Tullett Prebon

The sale of ICAP’s globally hybrid voice broking and information business to Tullett Prebon, now named TP ICAP (TP Icap), which includes the associated technology and broking platforms and certain joint ventures and associates, has completed today. The remaining business, which includes EBS BrokerTec, as well as Traiana, will remain under the newly named NEX Group (Nex). The board of NEX also announces that the Share Consolidation will become effective with effect from Admission today, at which point the total issued ordinary share capital of NEX will be 379,735,432 ordinary shares of 17.5 pence each.

FinTechs: Enablers, Not Disrupters

David Mercer, CEO of LMAX Exchange, talks to Galen Stops, deputy editor of Profit & Loss, about why FinTechs are enablers rather than disruptors of the FX market.

The world “disruption” is often applied to FinTech firms, yet Mercer argues that in FX the role of these firms is not to disrupt but to enable the growth of the market.

“We’re trying to enable the industry to operate more efficiently and more fairly. Other people put that disruption word around companies like LMAX Exchange but the FX market is the biggest asset class in the world, it doesn’t really need disrupting, it needs to grow and it needs to be enabled to allow it to grow.

Hans Tietmeyer 1931-2016

Germany’s Bundesbank has announced the death of its former president Hans Tietmeyer, who headed the central bank in the run up to the launch of the euro.
Tietmeyer joined the Bundesbank at the start of 1990 after working in government – part of which saw him conduct negotiations on international monetary issues and global financial relations – died on December 27.
In the summer of 1991, he was appointed vice-president of the Bundesbank and in October 1993 he became president.

Euro Leaps in Thin Markets

Dealers are scratching their heads over a sharp move higher in EUR/USD in early Asian trading after the pair moved 130 points in one minute, before reversing.
Dealers say the move occurred just before 8.40 Tokyo time and saw the pair rise from 1.0520 to 1.0651 in a fraction over a minute, before reversing to 1.0575 over the next two minutes. There are reports of the pair trading at 1.0695, however traders spoken to professed no knowledge of the trade.

HSBC Broker Banned by Hong Kong Regulator

A former broker at HSBC Broking has been banned for life by Hong Kong’s Securities and Futures Commission (SFC) after he illegally used clients’ accounts for trading in futures markets, including FX contracts.
SFC says an investigation into activities by Lam Yuk Wai found that between September 2011 and July 2015, he had conducted over 100 unauthorised transactions in the accounts of seven clients, causing them to suffer substantial losses.
It also finds that Lam deceived his clients by providing them with false and misleading account information.

And Finally…

And so, after a long and tortuous journey through December – at a time when the dollar has risen something like 5% in just a couple of weeks (and a lot of traders missed the move because they pulled stumps until January) – we come to the final Accolade of the year; my 2016 Person of the Year.
Last year I focused on the reform process because, undoubtedly and as turned out, 2016 was very much that type of year. This year, with a nod to the ongoing reform process around the impending launch of the ‘final’ Global Code of Conduct in May, I thought this award should very much reflect the business side of the industry – for the success, or otherwise, of FX will be driven by firms, both collectively and individually.

Bank Negara Fines Local Bank Over Fixing Misconduct, Claims NDF Problem Solved

Malaysia’s central bank, Bank Negara, has continued its offensive against what it believes to be market misconduct, saying it has initiated enforcement actions against an un-named local bank relating to dealers’ misconduct involving the fixing of the USD/MYR exchange rate.
Bank Negara says, “The finding indicates that there were communications with traders from other foreign financial institutions which included inappropriate references to the fixing rate submission process. In this regard, the Bank has commenced the due process as stipulated under the Financial Services Act.”

Egger Leaves Citadel; Salimi Joins

Shawn Egger, co-head of FX market making sales at Citadel Securities in New York, has left the firm, sources say.
Meanwhile, Rashelle Salimi, who was managing director, Americas e-FX sales at Bank of America Merrill Lynch (BAML), has joined the firm, according to sources.
Salimi joined BAML in 2015 as head of FX algo sales for North America. Prior to BAML, she spent nearly eight years at Credit Suisse and was at Bloomberg prior to that.
While a BAML spokesperson confirms Salimi’s exit, her new role, which is believed to be in e-FICC sales, at Citadel and Egger’s departure could not be confirmed by press time.

Building a Modern FX Platform

Rick Schonberg, global head of product for trading and clearing and the North American head of trading solutions at Currenex, talks to Galen Stops, deputy editor at Profit & Loss, about the launch of X2 trading platform.

“In some ways it’s easier and in some ways it’s harder,” explains Schonberg, who describes the number of execution choices available to these traders as “mind numbing”.

He says that many institutional clients, such as corporate treasurers, used to trade FX by doing what was effectively a telephone request for quotes (RFQ) to a handful of banks and then automating that into a GUI on a multi-bank platform