Month: June 2017

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.

Green Joins Lumint as EVP

Currency overlay manager Lumint has hired David Green as an executive vice president. He will continue to be based in Boston in his new role.

Prior to joining Lumint, Green was a managing director and global head of FX Connect sales and relationship management at State Street.

Before that, he spent 20 years at BNY Mellon over two different stints at the custodian bank. He worked in a number of different roles there, but most recently as a managing director and global co-head of FX sales.

Green also spent time as a vice president, FX sales, at ABN Amro and, at the beginning of his career, as a bond trader at Putnam Investments.

BNY Mellon Appoints Neal to Executive Committee

BNY Mellon has appointed Michelle Neal, CEO of BNY Mellon Markets Group, to the company’s Executive Committee.

“Michelle’s leadership experience and her expertise across the entire spectrum of Markets’ activities will be a valuable addition to our Executive Committee. BNY Mellon Markets continues to be a significant growth area for the company as our clients look to us for solutions to help them navigate the changing regulatory and market landscape,” says Gerald Hassell, CEO of BNY Mellon.
Neal joined the company in the fourth quarter of 2015, after leaving Deutsche Bank, where she was the global head of listed derivatives, markets clearing and fixed income market structure.

Egger to Head FastMatch Americas Sales

Shawn Egger is set to join FastMatch has head of sales, Americas, effective June 5, 2017.
Prior to this latest appointment Egger headed sales for Citadel Securities’ market making group, a New York-based position that he had held since 2014.
Before Citadel, Egger had spent time working as head of institutional sales, Americas at Swissquote and VP of sales at Integral Development.

Blockchain Vs. Bitcoin: Is the Pendulum Swinging Back?

Galen Stops looks at why demand for cryptoassets has skyrocketed in 2017 and assesses whether they have any future in mainstream financial markets.

The first working implementation of a blockchain that the world had ever seen was in the Bitcoin software released in 2009. Bitcoin the cryptocurrency then rose to prominence in 2013 when, driven in part by a flurry of media attention, its value rose past $1,000 for the first time.

Following that, 2014 represented a long and painful year of price decline for Bitcoin as an asset, but it continued to garner a lot of attention, not always for good reasons. Then in 2015 the narrative began to change as people really started talking about the potential applications of blockchain technology distinct from any digital assets.

And Another Thing…

The foreign exchange industry has always prided itself on its ability to innovate and evolve and it does indeed have a positive story to tell in these areas, but one area in which it clearly fell down badly was in its inability to maintain control in an era of technological expansion.
It is hard to look back on the events of 2008-13 and not see them as a direct result of the oversight function either failing to understand, or failing to keep up with, the technological revolution.

BGC to Launch New e-FX Platform

BGC Partners is set to launch a new e-FX trading platform in the next few weeks.
The platform will be unveiled alongside BGC’s new electronic US Treasuries platform, with both being branded under the Fenics umbrella. The FX platform will be called Fenics FX and the Treasuries platform will be called Fenics UST.
Lucera, which is owned by BGC, has supplied the underlying technology for the Fenics FX platform.
Soft trades have already been completed on the new platform and Profit & Loss understands that it will be ready to officially go live with trading in the next few weeks.

Killen Leaves Westpac

Hugh Killen, global head of fixed income, currencies and commodities at Westpac, stepped down from the role yesterday, Profit & Loss understands and is taking a career break.
Killen is leaving Westpac after a 16-year career with the bank having joined in June 2001 from State Street in Sydney where he was on the spot FX desk. Prior to State Street, Killen worked in spot FX at Dresdner Sydney and Elders Finance in Sydney.
In his time at Westpac Killen worked as country head of the Americas, based in New York, before returning to Sydney to head up first institutional FX and then the global FICC business.

Madaras Loses Unfair Dismissal Case

Former Citi FX trader David Madaras has lost his claim for unfair dismissal against the bank after a UK tribunal judge decided he intentionally broke rules surrounding the sharing of client information.
Madaras is the first of five former Citi FX traders who sued the bank to lose their claim after Perry Stimpson, Carly McWilliams, Robert Hoodless and most recently Baris Ozkaptan all were ruled to have been unfairly dismissed, even though the judge found they also contributed to their dismissal.