Day: 2 June 2017

Is Big Brother Watching You?

Galen Stops looks at how chat room activity is being monitored and controlled following recent collusion scandals.

“I’ve talked to hundreds of firms across the world and I haven’t yet met any that haven’t put requirements around information control, policy and security at the top of their agenda, it’s the first thing that comes to their minds,” says David Gurle, founder and CEO of Symphony, a cloud-based communications service provider.

This focus around information control and security is perhaps unsurprising given the events of recent years, in which financial institutions have been forced to shell out billions of dollars in fines relating to accusations of collusion to manipulate the Libor and WMR Fix benchmarks.

FastMatch Moves to Flat Fee Structure

FastMatch is adjusting its fee structure for trading on the platform resulting in a flat rate for all FX participants using the technology.
In a note on the platform’s website, the firm, which was recently acquired by Euronext, says effective July 1, 2017 it will charge a flat $3 per side to users of its anonymous ECN.
Previously, FastMatch had a tiered pricing system that saw users pay less the higher percentage of daily volume they accounted for on the platform.

LCH Sees ForexClear Momentum

Clearing house LCH says it is seeing “good momentum” in its ForexClear service heading into the second half of the year.
The firm says that as at May 2017 it has now cleared more that $10 trillion in notional value since inception. More pertinently, it says it has cleared more notional value ($3.8 trillion) in the first five months of 2017 than it did in the whole of 2016 ($3.2 trillion).
As well as a 200% increase in client accounts in 2017, LCH says 18 May 2017 set a new record for number of trades cleared, with 9,336 processed in a single day.

Platforms Report Monthly Data

The first FX platform providers to report average daily volume (ADV) data indicate May maintained the momentum of the previous months.
Spot FX activity on NEX Markets (formerly EBS) was $81.3 billion per day, up 6.8% from April and 12% higher year-on-year. At CME combined FX futures and options on futures volume was 823,000 contracts per day.
CBoE’s HotspotFX reports ADV of $28.1 billion, a 1.4% increase on April and a very healthy 20% increase from May 2016, while FastMatchFX reports ADV of $22.5 billion, a 18.4% month-on-month increase and almost double May 2016’s ADV of $11.4 billion.
FXSpotStream handled $17.5 billion in May, up 2% from April and 9% from May 2016 and Gain’s GTX reports ADV across its ECN and SEF of $10.7 billion, a 7% drop from April but a 55% increase from May 2016.