Month: April 2017

Squarepoint Capital Expands Agreement with Kx

Squarepoint Capital, a global systematic investment manager, has significantly expanded its use of Kx technology for investment research, according to Kx Systems, a subsidiary of First Derivatives.
The firm is using Kdb+, Kx’s time-series database, which is used for trading and risk management platforms and Kx says that as faster large-memory servers are becoming standard, investment managers like Squarepoint are designing their systems to capitalise on the extra speed available when analysing the vast data sets that underpin their investment models.

CFTC Adds 71 Names to RED List

The US Commodity Futures Trading Commission has more than trebled the number of names on its Registration Deficient (RED) list of unregistered foreign entities that the CFTC has reason to believe are soliciting and accepting funds from US residents at a retail level for, among other things, trading in binary options or FX and who are required to register with the CFTC but, in fact, are not registered.
CFTC has added 71 names to the list that previously contained 30 firms, the full list can be found at www.SmartCheck.gov/REDList.

CTAs Challenged by Divergent Trends

Managed futures traders lost -0.44% in March, according to the Barclay CTA Index, which is compiled by BarclayHedge. Year to date, the Index is currently down -0.75%.
Due to divergent trends, four of Barclay’s CTA indices recorded gains in March, while four had losses.
The Currency Traders Index was up 0.65%, Agricultural Traders gained 0.58%, Financial/Metals Traders were up 0.37%, and Discretionary Traders added 0.16%.
In the loss column, Diversified Traders were down -1.15%, and Systematic Traders gave up -0.68%.

Redline Relocates Lau for European Sales Role

Redline Trading Solutions has named Patrick Lau as its director of EMEA sales, relocating him from his previous sales role in New York to London.

“Patrick’s success at Redline in building collaborative relationships with leaders of global banks provides a strong foundation for his promotion and relocation to London,” says John Hanna, VP of sales.

Alongside Dave Carson, who leads field engineering for EMEA, Lau will be tasked with leading a team aimed at expanding adoption of Redline’s solutions throughout European markets that include market data software, enterprise data distribution, order execution engines, and infrastructure-as-a-service offerings.

And Finally…

It has always driven me a little nuts when I ask about a firm’s strategy going forward and am told something along the lines of, “We listen to our clients – new products and services are driven by client demand”.
Yes, of course, a service provider that does not listen doesn’t last long, but I have always argued superior service is about anticipating client demands, not reacting to it, and the story of CME Europe may be a case in point.

CME Europe, What Went Wrong?

Six years after launching CME Clearing Europe and three years after launching CME Europe, the Chicago-based exchange group has announced that it will shut both operations at the end of this year. Although the move was something of a surprise, Galen Stops discovers there are some compelling reasons why the initiative failed. He asks what went wrong and what does this move mean for CME’s remaining European operations as well as the ongoing efforts by its competitors to get a European FX derivatives business off the ground?

Report Shows Growth in FX Derivatives Market…Or Does it?

The World Federation of Exchanges (WFE) has released a new report showing that trading in currency derivatives grew 10.4% year-on-year in 2016, but this figure doesn’t quite tell the whole story because the driver of the WFE’s well-spun report how the data is measuring the number of contracts traded and not their notional value – it is also heavily skewed by certain domestic factors that, while giving the impression of a growing global market, actually have little or no impact internationally

Northern Trust Outlines New e-FX Growth Strategy

Dan Torrey, global head of FX e-commerce sales, at Northern Trust, talks to Profit & Loss deputy editor Galen Stops about how the bank is planning and building a more comprehensive FX e-commerce strategy to meet the changing needs of its client base, noting it’s not just as simple as offering RFS in spot, forwards and NDFs in different regions across a broad array of pairs, but also being able to come up with customised solutions and putting more sophisticated execution tools in the hands of clients.

Deutsche Bank Fined by Fed Over Lack of Controls

The Federal Reserve has announced two enforcement actions against Deutsche Bank that require the bank to pay a combined $156.6 million in civil monetary penalties.
The bank will pay a $136.9 million fine for “unsafe and unsound practices” in the FX markets, as well as a $19.7 million fine for failure to maintain an adequate Volcker rule compliance programme.
The Fed says it found deficiencies in the Deutsche’s oversight of, and internal controls over, FX traders and that the firm failed to detect and address that its traders used electronic chat rooms to communicate with competitors about their trading positions.

Nex SEF Gets CFTC Approval

Nex Group has received regulatory approval from the Commodity Futures Trading Commission (CFTC) for a new Swap Execution Facility, Nex SEF (Nex SEF).

EBS is the technology provider to Nex SEF, but the trades are executed on the latter of these two platforms. The new SEF is expected to have onboarded customers and be live for trading in the second quarter of financial year 2017-2018. Nex says that its new SEF will serve as a platform that can be used to launch additional products in the future.