Day: 26 January 2017

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.

P&L Talks Series with Brandon Mulvihill

Brandon Mulvihill, managing director, head of FXCM Pro, explains that there is still not enough clarity about the different prime-of-prime services being offered in the FX market, and warns that it is a mistake to believe that these firms are currently ready to fill the gap left by the tier one prime brokers.

Profit & Loss: Since “SNB Day” there have been a lot of firms touting prime-of-prime (PoP) services to the FX market. Many of them actually provide very different services. Two years on from SNB, do you feel like these differences are better understood by market participants?

CLS Introduces Two New Membership Categories

CLS Group (CLS) has introduced two new membership models, affiliated settlement and non-shareholder settlement.

These two new categories will exist alongside the existing shareholder and central bank settlement membership categories.

The affiliated settlement membership category allows institutions to have more than one entity within a corporate group become a settlement member. This category is aimed at institutions seeking to segregate their FX businesses to manage their own CLS participation and correspondent banking relationships.

It also removes the reliance on internal clearing and intergroup limits, helps settlement members meet their regulatory ring-fencing obligations and facilitates recovery and resolution planning.

Boreham Joins CFH Clearing

Chauncey Boreham has been appointed vice president, institutional sales at CFH Clearing.

In this new role, Boreham will focus primarily on institutional FX/CFD sales in Europe and the US. As part of his remit, he will be tasked with seeking opportunities to expand CFH Clearing’s prime services and margin business across these regions.

Boreham joins CFH from ADS Securities, where he worked in institutional sales. He has also worked as the head of trading at Alpari UK and as a sole trader at CTB Futures.

Playing the Long Game in China

Despite a bearish outlook on China and its currency right now, panellists at Profit & Loss Shanghai claimed that in the long-term, the fundamentals are in place for RMB development.

While China’s economy continues to enjoy growth rates that most fully developed economies could only dream of, the slowing of this growth rate has led to negative sentiment about China from some international investors.

“The perception outside of China about China’s economic rebalancing is very critical right now,” said Ivan Shi, a director at Z-Ben Advisors.