Day: 13 February 2017

CFTC Hits FXCM with Another Fine

FXCM has agreed a settlement for $650,000 with the US Commodity Futures Trading Commission (CFTC), relating to allegations that the firm was under-capitalised following the volatility caused by the Swiss National Bank’s (SNB) decision to abandon its peg to the euro.

The CFTC originally filed the civil action against FXCM’s US subsidiary in the Southern District Court of New York on August 18, 2016.

The action alleges that FXCM US was briefly under-capitalised as a result of the SNB’s unexpected announcement on January 15, 2015, that it was abandoning its historical policy of pegging the Swiss franc to a fixed exchange rate of 1.2000 Swiss francs per euro.

BGC FX Revenues Decline in 2016, But Fenics a Bright Spot

BGC Partners has released fourth quarter and full year results for 2016, which show that revenues were down in both its fully electronic FX and financial services businesses compared to the previous year.

BGC posted Q4 2016 FX revenues of $70.8 million, down 5.8% from Q4 2015, and full year revenue of $303.3 million, down 6.6% from 2015.

The notional volume from its fully electronic FX trading unit was also down year-on-year, dropping 21.8% from $13.4 trillion in 2015 to $10.5 trillion last year.

Edwards Joins Citadel Securities

Citadel Securities has hired James Edwards in a FICC sales and relationship management role.

Based in London, Edwards joins the firm from JP Morgan, where he was vice president, e-FICC sales, for over three years.

Prior to joining JP Morgan in 2013, Edwards worked at Bloomberg, initially in analytics and sales, specialising in FX and commodities, and later as an associate focused on Scandinavian financial sales.

Between 2008 and 2010, he worked on the FX corporate sales desk at MoneyCorp.

Dohmen to Head Compliance at Stater Global Markets

David Dohmen has been appointed head of compliance at Stater Global Markets, a London-based prime-of-prime service provider.

Reporting directly into CEO Ramy Soliman, Dohmen is expected to focus on ensuring that the business operates within the regulatory framework laid out by the Financial Conduct Authority (FCA).

He joins Stater with over 17 years’ experience in legal and compliance roles – most recently from prop trading firm Ronin Trading UK/Europe, where he was director of compliance and operations for more than four years.

Tarullo to Step Down From Fed Board

Daniel Tarullo has resigned as a member of the board of governors of the Federal Reserve System, effective on or around April 5, 2017. He has been a member of the board since January 28, 2009.

“Dan led the Fed’s work to craft a new framework for ensuring the safety and soundness of our financial system following the financial crisis and made invaluable contributions across the entire range of the Fed’s responsibilities,” says Fed Chair, Janet Yellen. “My colleagues and I will truly miss his deep expertise, impeccable judgment, wise insight and strategic counsel.”us

Citi’s FX Head to Retire

Citi confirms that James Bindler, global head of G10 FX at the bank, is retiring.
Profit & Loss understands from sources that Itay Tuchman, currently head of markets for Citi in Sydney, is moving to London to take the reins of the business, however the bank was unable to confirm this.
Bindler has been with Citi since 1990, having joined the bank from Midland Bank in New York in 1982. Since 2000 he has been based in London and he has been a member of the Bank of England’s Foreign Exchange Committee since 2008.

The DNA of a Flash Crash

A new paper uses trade repository data to forensically analyse the Swiss franc de-pegging and while Colin Lambert finds its conclusions are familiar, the paper offers other insights

The story is familiar to anyone in the foreign exchange business – on January 15, 2015, the Swiss National Bank shocked the markets with the announcement it was abandoning its Swiss franc ceiling to the euro at 1.2000. Chaos ensued as EUR/CHF collapsed over 40% before recovering sharply, after which the industry was left to rake over the ashes of what was to many a debacle.

GTX to Offer Independent TCA

GTX has partnered with Ideal Prediction, an independent trading analytics and data science company, to offer its clients analytics aimed at to optimising their FX trading.

The market data, tools, and services are designed to enable buy-side and sell-side market participants to optimise profitability and simulate strategies, as well as perform Transaction Cost Analysis (TCA).

GTX says in a release announcing the partnership that it will further enable sell-side market participants to benchmark execution performance, analyse client flows, and optimise risk management strategies.