Day: 23 May 2017

Euronext and FastMatch: the Perfect Combination?

As reported earlier, European exchange group Euronext is buying a majority stake in FX ECN FastMatch. Not only is this a deal that has long been rumoured (only the identity of the buyer was unknown) it also appears to be a deal that makes a great deal of sense.
Euronext is buying a 90% stake in an FX ECN that is seeing tremendous volume growth – the first four months of 2017 have seen average daily volume of $18.1 billion compared to $11 billion the same time in 2016 – and FastMatch is gaining access to a potentially huge distribution network.

Cürex Hires Cudahy

Kevin Cudahy joins Cürex Group in New York as a managing director, business development. He reports directly to Jamie Singleton, chairman and CEO.
A 25-year FX industry veteran, Cudahy was most recently head of FX sales, North America, at Bloomberg Tradebook, which shuttered its FX group in January. Cudahy joined Tradebook in mid-2013. Prior to that, Cudahy spent more than 10 years at BNP Paribas, where he worked on the FX sales desk. He also spent a period at CCM Securities.

Barclay CTA Index Gains 0.16% in April

Managed futures traders gained 0.16% in April, according to the Barclay CTA Index compiled by BarclayHedge. Year-to-date, however, the Index remains down -0.66%.
Five of Barclay’s CTA indices had gains in April, while three had losses. Currency traders were up 0.40%, financial/metals traders gained 0.33%, systematic traders added 0.20%, and diversified traders eked out a 0.03% gain. The agricultural traders Index lost 0.38% in April, and discretionary traders were down 0.11%.
The Barclay BTOP50 Index, which monitors the largest investable trading advisor programmes, lost -0.57% in April and is down -2.17% year to date.

R3 Raises $107 Million

R3 has raised $107 million in the first two of three planned tranches in its Series A fundraising round. This represents the largest single investment in a firm providing distributed ledger technology (DLT) services to date.
According to data from CoinDesk, which tracks venture capital (VC) investment in blockchain and bitcoin focused firms, only Coinbase, Circle Internet Financial and 21 Inc, have now raised more VC money than R3. However, none of these firms are exclusively focused on DLT and in some cases they have clearly conducted more fundraising rounds.

NEX Infinity Launches with Spot FX

NEX Optimisation will be launching its new NEX Infinity platform in July, when its clients will be able to start testing spot FX and cash equities in the Infinity distributed ledger.
In addition to its use of blockchain technology, the new architecture also utilises cloud hosting in a bid to simplify trade processing, improve clients’ control of their data and reduce costs. As a Software as a Service platform, Nex Infinity will also allow third-party technology providers to offer their services on the platform.

Euronext Buys 90% Stake in FastMatch

European exchange group Euronext has become the latest to buy into the OTC FX market, announcing it has acquired around 90% of FastMatch for $153 million initial cash consideration. FastMatch’s management will remain invested with around a10% interest, with minority rights. Closing is subject to regulatory and anti-trust approvals, and is expected to occur in Q3 2017.
Euronext says the deal is part of its strategy to actively leverage its balance sheet to capture value accretive opportunities and to accelerate growth and diversification of our revenue base in line with its strategic plan ambitions.

Ready for Launch

Profit & Loss talks to David Puth, CEO of CLS and Chairman of the Market Participants Group (MPG), about how the FX Global Code of Conduct will work.

Profit & Loss: What was the process like to develop the Code from start to finish? Were there challenges in achieving consensus amongst so many different market participants?

David Puth: The development of the Code has generally been a constructive process. The committees involved in its creation are: the FX Working Group (FXWG), which is the central bank working group; the Market Participants Group (MPG), which is the group that I chair; and a number of industry groups, including regional FX committees.