Month: January 2017

Bloomberg Shutters Tradebook FX

Bloomberg Tradebook is exiting the FX business, winding down operations by March 1. Profit & Loss understands that New York-based Kevin Cudahy, head of FX sales, North America, and Paul Beatty, global manager, are no longer at Bloomberg Tradebook. A spokesperson declines to comment on personnel moves. Beatty had been with the company for nearly 17 years, while Cudahy joined Tradebook in mid-2013. Beatty’s Linkedin profile suggests he spent his career at Bloomberg Tradebook. Cudahy, meanwhile, spent more than 10 years at BNP Paribas, where he worked on the FX sales desk. He also spent a period at CCM Securities, a Bluefin company, as MD of FX sales and trading. Prior to these roles, Cudahy worked in sales at WestLB, but started his career in trading, working at Credit Suisse, RepNat and NatWest.

FX Volatility: Creating a New Playbook

In recent years, the FX market has had to cope with some major spikes in volatility, forcing firms to adjust how they trade this market. The number of large market moves on the back of thin liquidity during unanticipated (and anticipated) market events seen last year – from SNB to Brexit to the US elections – raises the question whether there a need for a new “FX Playbook”.

Speaking at Profit & Loss Forex Network Chicago, Stephen Flanagan, executive director, global FX e-commerce risk manager at JP Morgan, highlighted how firms have made adjustments.

The Wrap

Liquidity, fragmentation and geopolitics dominate closing conversations on Day 2 at Profit & Loss Forex Network Chicago.

After each of the five topic speakers gave their debriefing of discussions within the working groups, the conversation opened up between the panelists to explore some of the themes raised during the working group recaps.

Drawing on discussions around both liquidity and geopolitics, Chip Lowry, senior managing director, State Street Global Markets, kicked things off with the topic of de-globalisation, and whether the current trend of countries looking more inward is affecting liquidity.

The Debriefing

The Debriefing session brought together each of the five speakers after convening with their table heads to get feedback from each of the respective working groups, the results of which were presented in a panel discussion about the findings.

In the final act of Forex Network Chicago, The Debriefing session featured the five topic speakers providing an overview of the working group sessions that took place around each of the five topic working groups.

The main speakers and the table heads they worked with included: Geopolitics: Mario Manna, CEO, Nightberg, with support from table heads George Dowd, president, G. Dowd & Co; and Bob Savage, CEO, CCTrack.com.

The Profit & Loss Challenge

Profit & Loss introduced a new format at Forex Network Chicago, which took place September 28-29. The second day was dedicated to the Profit & Loss Challenge, during which conference participants broke into working groups under five key topics: Geopolitics, Regulatory, Liquidity, Execution and Technology.

Raising the curtain on the day’s discussions during a new format on Day 2 at Forex Network Chicago, managing editor Colin Lambert kicked off with a series of questions to get the conversations going with topic speakers.

And Finally…

Today’s column is definitely not one for the teenagers – indeed it looks at an issue only those of us of a (ahem) certain vintage, will remember.
I was fascinated to read over the weekend that there is a something bubbling up in Malaysia over FX losses made by the country’s central bank in the early 1990s. Apparently the issue has re-emerged as a whistle blower now claims that the bank lost $10 billion trading and that there was no official investigation.

e-Mid Added to the Nex Group

BrokerTec, Nex Group’s electronic fixed income trading platform, has agreed to acquire a controlling majority stake in e-Mid, the Italian electronic central limit order book (CLOB) for interbank deposits and Overnight Indexed Swaps (OIS).
The transaction is subject to certain conditions, including the approval of the Bank of Italy, the firm says that subject to receipt of this approval it expects the transaction to complete in the next few months.
Upon completion of the transaction, e-Mid will become a subsidiary of BrokerTec Europe Ltd.

FX Platforms: Optimism Abounds for 2017

Galen Stops looks back at how the OTC FX platforms fared in 2016 and talks to them about their strategic plans for 2017.

Speaking to platform providers at the end of 2015 about their prospects for the next year, they were all fairly bullish that a period of subdued volatility, and subsequently trading volumes, was about to come to an end.

And on the surface, the reasons they cited for this optimism were logical. The US Federal Reserve had just approved a quarter-point increase in its target funds rate, the first change in rates since 2009 and the first increase since 2006. Many hoped that further rate increases were coming and that interest rate differentials might start to produce trading opportunities and therefore lift FX volumes.

CME Amends Rules for Physical Delivery of FX

CME Group has changed its rules regarding FX delivery, putting a cap on the amount of deliverable FX that firms can clear via wire transfer when trading deliverable currency products on its platforms.

Currently, under CME Rule 730 deliverable currency futures contracts are required to be physically delivered through CLS where both the trading unit and price increment currency are supported by CLS delivery procedures, unless the clearing firm’s delivery exposure in any single contract is not expected to exceed $25 million.