Month: May 2017

Flash Crashes: A Not So Modern Phenomenon

Following the sterling flash crash last year there has been much industry debate about what the increasingly regularity and severity of these events means for FX market participants and whether anything can be done to prevent or mitigate their impact in the future.

According to Neil Crammond, risk manager for FX at Avem Capital, part of the reason why these flash events are occurring is simply that markets aren’t used to the levels of volatility that used to exist prior to the financial crisis and the implementation of quantitative easing by a number of central banks.

“I think that the problem with the modern FX market is that pre-2008 if you came in every day and someone said to you that “we’re going to have a 300 tick move in the cable every day”, you’d trade according to that,” he says.

Steady FX Volumes in April

The first group of FX platforms to report average daily volume (ADV) indicate the steady start to the year continued through April.
CBoE’s HotspotFX reports ADV of $29 billion per day, just down from March’s 29.7 billion, but 13.8% up year-on-year.
Meanwhile, FastMatchFX has set another high water mark in ADV terms, eclipsing last month’s $19.2 billion by recording $19.8 billion in April, up 83.3% from April 2016.
Gain’s GTX also had a steady month, reporting ADV of $11.5 billion, slightly down from March’s $11.8 billion but up 47.4% year-on-year.

And Finally…

Sign up for the new Profit & Loss monthly Insight calls with yours truly to see what I really mean by “sometimes right; sometimes wrong; always certain!” Into the bargain we will throw in a brief section on “Things That Make You go Hmmm…” as well (and it’s not often C&C Music Factory make it into financial journalism).
Oh, and while we’re at it, have we seen evidence that October’s sterling flash crash had nothing to do with a news item?

BNY Mellon Adds Three in FX?

Market sources tell Profit & Loss that Bank of New York Mellon has continued to add to its ranks as it builds out its FX business.
The sources says the bank has hired Richard Grover, Huazhang Luo and Patricia Muchinsky for its e-FX teams in London and New York, all will report to Jeff Leal, global head of e-FX.
Grover joins BNY Mellon from NAB in London, Luo from BNP Paribas and Muchinsky is joining the bank from V3 in Chicago.

BNY Mellon Adds Three in FX?

Market sources tell Profit & Loss that Bank of New York Mellon has continued to add to its ranks as it builds out its FX business.
The sources says the bank has hired Richard Grover, Huazhang Luo and Patricia Muchinsky for its e-FX teams in London and New York. Grover and Luo will report to Jeff Leal, global head of e-FX, Muchinsky reports to Jason Vitale, COO, Markets at BNY Mellon.
Grover joins BNY Mellon from NAB in London, Luo from BNP Paribas and Muchinsky is joining the bank from V3 in Chicago.