Month: May 2017

New Global FX Committee Formed

In addition to the Code, central bank governors under the auspices of the Bank for International Settlements have formally announced the formation of a Global FX Committee (GFXC), with the Bank of England’s head of markets, Chris Salmon, at the helm.
One of the core objectives of the GFXC will be to promote and maintain the FX Global Code by ensuring that the guidance set out remains relevant and taking into account good practices for supporting adherence. It will seek to promote collaboration and communication among local foreign exchange committees and other jurisdictions with significant FX markets.

The FX Global Code of Conduct: What the Industry is Saying

Today marks the release of the FX Global Code of Conduct – a much anticipated event in the foreign exchange industry. Here is the reaction of senior figures within the industry. Chip Lowry, chair, FXPA: “The FXPA endorses the Global Code and its stated aim to promote a robust, fair, liquid, open and transparent market, which is very much in line with FXPA’s own principles. We recommend that our members demonstrate their commitment to adopting the good practices set forth in the Code. FXPA commends the global coordination and work of the BIS’s Foreign Exchange Working Group in strengthening global standards for those operating in the FX market. We fully support the adoption of its principles.”

And Another Thing…

If there is one subject upon which I have expounded a lot on recent months it is the FX Global Code of Conduct, so let’s keep this relatively brief.
Today has the potential to be a landmark day in the FX industry – a moment when it passes from being an unregulated market with what we now know were obvious cultural problems stemming from the technological revolution, to an unregulated market in which everyone knows the definition of bad practice in the context of a predominantly electronic market.

BNP Fined by DFS for “Unsafe and Unsound” FX Conduct

BNP Paribas has been fined $350 million as part of a consent order entered into with the New York State Department of Financial Services (DFS) for “significant, long-term violations of New York banking law” in the bank’s global foreign-exchange business.
DFS says its investigation found the improper conduct at BNP included collusive activity by traders to manipulate FX prices and benchmark rates; executing fake trades to influence the exchange rates of emerging market currencies; and improperly sharing confidential customer information with traders at other large banks.

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.