Day: 13 June 2017

Tracking GBP’s Post-Election Trading Spike

CLS and Thomson Reuters (TR) have released data charting the spike in GBP trading following the UK’s recent general election.The exit poll at 22:00 produced a surprise outcome with the Conservative party expected to win just 314 seats, far less

The exit poll at 22:00 produced a surprise outcome with the Conservative party expected to win just 314 seats, far less than previous polls and 12 seats short of an overall majority.

The data from CLS shows that this resulted in an elevated trading activity in GBP/USD at 22:00. As results were being announced during the night, the unexpected exit poll was becoming more credible and GBP/USD volumes remained much higher than the 2016 average.

LMAX Expands US Presence

LMAX Exchange (Lmax) has appointed Matt DellaRocca to the newly created position of liquidity manager for the Americas.

In this new role, DellaRocca will be responsible for the real-time management, monitoring and analysis of all Lmax liquidity in the US.

DellaRocca joins the firm from Bloomberg Tradebook, where he was also liquidity manager.

Commenting on the appointment, Patrick Bartle, global head of institutional sales at Lmax, says: “We are delighted to be able to attract such talent to the company, helping us anchor our expansion into the US market.”

DellaRocca adds: “I’m excited to join a team committed to transforming the FX marketplace into a transparent, level playing field for all market participants. I look forward to contributing to the growth of Lmax Exchange within the US marketplace.”

FX Global Code Warrants a Close Look by Retirement Plan Fiduciaries

Retirement plan fiduciaries, who themselves or through a third party, engage in foreign exchange transactions on behalf of the plan, should be aware of the new FX Global Code (Code). The Code is a noble effort to repair the reputation of the wholesale FX market in the wake of scandals and controversies.

Though it does not have the force of law, it can serve as a useful springboard for fiduciaries to buttress risk controls and fiduciary awareness over an industry that seems obscure to some. The Code can catalyse a change from disengagement and insufficient understanding of common (and, in certain instances, controversial) FX practices to engagement and a deeper understanding of a market whose products are in so many investment policy statements and mandates of retirement plans.

Thomson Reuters Joins Forces with Symphony

Thomson Reuters (TR) and Symphony Communication Services have announced a partnership that will enable market participants to share information from Eikon such as charts, news and data via Symphony’s messaging and collaboration platform.

The integration is slated to be available later this year. Users who have both Thomson Reuters Eikon and Symphony will be able to share Eikon content directly through the Symphony messaging and collaboration platform. If the recipient also has Eikon, then they are able to share live data, news and charts to support dynamic, real-time collaboration. The integration will leverage both Eikon and Symphony open APIs.

Chui to Head Brokerage Risk at ADS

ADS Securities has appointed Fabian Chui as head of brokerage risk.

Chui joins ADS from IG Group, where he was head of market risk, responsible for “implementing and guiding” the market risk appetite of IG Group, as well as risk policies and procedures at the firm.

Prior to that, he was a senior quant analyst, developing, evaluating and deploying revenue optimising strategies for IG.

Chui will report into Philippe Ghanem, chief executive, who comments: “ADS Securities is delighted to welcome Fabian to the firm. Fabian has the depth of experience in risk management, which will make him an essential member of the executive team as we enter another phase of strategic growth.”

State Street FX Platforms Get MTF Approval

State Street says it has received approval from the UK’s Financial Conduct Authority (FCA) to operate its FX Connect and Currenex platforms as multi-lateral trading facilities (MTFs) for foreign exchange within the jurisdiction of MiFID II.
Both platforms will now operate as MTFs and be upgraded to be compliant with MIFID II upon implementation in January 2018, State Street says.
For institutions that fall under the MiFID II regime in Europe, “financial instruments” can only be traded on the new MTFs.

Northern Trust Launches FX Algo Suite

Northern Trust has launched a suite of FX client execution algorithms, aimed at allowing clients to manage their FX exposure with an enhanced level of control and transparency.
Dan Torrey, global head of FX e-commerce sales at Northern Trust, says that previous trends amongst Northern Trust clients currently utilising its algo suite suggest that many of them will focus on using TWAP algos to minimise market risk/impact on larger orders, while attempting to benefit from the greater transparency that is offered by the bank’s post-trade execution reporting.

Cartel Traders Agree to US Extradition

Court documents filed in New York this week indicate that three members of the notorious “Cartel” chat room have agreed to extradition to the US to be arraigned on charges of conspiracy to rig FX markets.
In a letter, the US Department of Justice (DoJ) states, “We are writing to confirm that each of the three defendants in the above-referenced case – Richard Usher, Rohan Ramchandani, and Christopher Ashton – have agreed to voluntarily appear before the Court on the charge brought against them by indictment in January of this year.

Boulos Latest Big Name to Join BNY Mellon

Profit & Loss understands that Darren Boulos has joined Bank of New York Mellon as head of FX sales and trading for Asia Pacific.
Boulos was last at Deutsche Bank in Sydney where he closed out a nine-year career in the role of head of FIC for Asia. Boulos joined Deutsche as head of short term interest rate trading in 2006, before moving to run FX in Sydney from 2010 to 2012.
Prior to Deutsche he had spells at RBC and Credit Suisse in Sydney, Singapore and Tokyo.

Adams Exits ParFX

Campbell Adams has left Tradition’s ParFX where he was head of market.
Adams has played a central role in the development of ParFX as it was his concept of the randomised “speed bump”, or a non-deterministic pause before an order is placed into the matching engine, that drove the initial project – Pure FX – that ultimately became ParFX.
Adams joined Tradition when the brokerage firm took over control of what was then named TraFXPure from a consortium of banks that had funded the initial development phases under Adams’ direction.