Day: 6 April 2017

EUR/CZK Declines as Central Bank Formally Removes Floor

The Czech kroner has strengthened following today’s formal end to the central bank’s programme to support EUR/CZK, which has been in place since November 2013.
At today’s central bank board meeting the policy was formally discarded – as signalled by the Czech National Bank (CNB) last week. As the news was announced EUR/CZK apparently spiked to 27.15 from just above its floor at 27.00, but then declined sharply to 26.69 and continued to be under pressure as dealers anticipate a further unwinding of positions.

CLS to Expand Currencies For Its New Netting Service

CLS has announced plans to expand its bilateral payment netting service, due to launch in 2018, to support more than 140 currencies at launch as opposed to the 24 currencies initially planned.
In a release issued today CLS says that this decision was taken in response to demand from market participants. Coverage will now include all currencies associated with jurisdictions not on an official black and grey or sanctions list that would prevent CLS from conducting business with that jurisdiction.

A Lighter Footprint

Increased attention on market impact has prompted non-bank market making firm XTX to release a new analysis tool, XTX-ray. Colin Lambert takes a look.

Market impact has grown steadily as a topic of conversation in the FX industry, thanks in part to the events of October 7, 2016 in Cable, but also due to the increasing instances of “mini” flash moves in markets. As risk warehousing activities have been scaled back across the banking industry, a crucial buffer is being thinned out, meaning orders that previously had minimal or no impact on market levels, now do.

LMRKTS Signs Up for Cobalt BlueSky Platform

Compression service provider, LMRKTS (Lmrkts), has become the first firm to sign up to Cobalt DL’s BlueSky service, the shared ledger component of Cobalt’s platform.

The Cobalt BlueSky service is a secure repository of unique shared FX contracts and the staging area for lifecycle events, risk reduction and preparation of trades for settlement finality. It is designed to enable third party technology providers to facilitate and develop their own applications based on access to the database of reconciled transaction data created by the Cobalt network.

And Another Thing…

Thankfully, and we accept no payment for this enormous service to the industry, at last week’s Forex Network London conference, former Citi FX head James Bindler and I solved the problem of last look.
Those of you that were there already know this, of course, and, equally clearly, it’s not my idea in any shape or form – I’m just jumping on the coat tails of other brighter people! That said, a solution, more importantly, a potentially workable solution, does exist.