Month: June 2017

Ferretti Handed New Role at HSBC

HSBC has named Michael Ferretti to a newly created role as regional head of global intermediary services (GIS), Americas.

With immediate effect, Ferretti will be responsible for structuring and developing HSBC’s FX prime brokerage business, while promoting GIS, including execution services, FX overlay and custody FX across the Americas.

GIS provides clients with access to a comprehensive and advanced range of FX services, which support them through the lifecycle of their FX execution strategies and investments, the bank says.

Ferretti will be based in New York reporting globally to Vincent Bonamy, global head of GIS, and locally to Gregory Pierce, head of markets, Americas.

IFC Makes Investment in LMRKTS

International Finance Corporation (IFC), a member of the World Bank Group, has made an equity investment in compression service provider, LMRKTS (Lmrkts).

IFC joins lead investor Motive Partners, a private investment firm focusing on technology-enabled companies within the financial services industry, in this investment round.

Founded in 2012, Lmrkts provides a compression service designed to enable commercial and investment banks to reduce exposure to each other thereby minimising counterparty risk and leverage costs.

The company balances participants’ counterparty limits and their risk management objectives with a structured methodology that aims to deliver mutually beneficial results. After years of testing, Lmrkts launched in late 2016, and has compressed over US$2 trillion of notional equivalent in foreign exchange derivatives.

Hedin, Lundberg Named Co-Heads of Trading at SEB

SEB Merchant Bank is merging its traditional trading and e-commerce businesses under newly appointed co-heads Svante Hedin and Jonas Lundberg. The pair will oversee trading globally across asset classes.

Hedin was previously global head of electronic markets, while Lundberg was head of global trading for the bank.

Hedin joined SEB in Stockholm in 2013 as head of FX electronic trading, having spent most of his previous career in London in several executive and senior trading positions with US investment banks. He was most recently at JP Morgan, where he was managing director and global head of e-FX trading.

ISDA: Time Ticking on Margin Deadlines

The new variation margin deadlines still pose a substantial challenge to financial services firms, despite the “substantial progress” that many of these firms have made in their compliance efforts, according to Scott O’Malia, CEO of the International Swaps and Derivatives Association (ISDA).

The variation margin requirements came into effect for swap dealers on March 1, 2017, but the Commodity Futures Trading Commission (CFTC) issued a no-action letter in February, which stated that it would not enforce the new rules for the first six months after this date.

BSO Expands FX Trading Circuit in Asia

Ethernet, cloud and hosting provider, BSO, has added Singapore and Hong Kong to its FX circuit, citing growing demand for fast and reliable access to trade currency derivatives in emerging markets as the reason for the expansion.

The new routes, built on top of BSO’s London-New York-Tokyo circuit, will enable market makers using the BSO network to trade currency derivatives up to 10 milliseconds faster than before.

The new circuit includes improved latency and more diverse paths between London and Singapore, as well as a new trans-Pacific route for firms looking to trade between New York and Hong Kong. BSO says that it has also optimised its London-Tokyo link to the lowest latency available on the market.

Bank of China HK Joins EBS Direct

NEX Markets says that Bank of China (Hong Kong) has joined its EBS Direct platform as a liquidity provider.
Nex says the move offers “increased liquidity and improved pricing to clients on the platform globally, particularly those trading the offshore Chinese renminbi (CNH).”
EBS Direct is Nex’s disclosed relationship trading venue and Jeff Ward, global head of NDFs and forwards and head of FX Asia, at Nex Markets, says, “As the Chinese yuan moves closer to internationalisation, this can only enhance our customers’ access to liquidity, improved pricing and certainty of execution.”

A Perfect Storm: The Buy Side’s Liquidity Conundrum

David Newns, senior managing director at State Street and global head of Currenex, speaks with Nicola Tavendale about the confluence of factors that are creating a unique set of challenges for the buy side.

I ncreasing regulatory requirements, coupled with the changing characteristics of liquidity in the FX market place in recent years, has resulted in a heightened focus from the buy side on how it can effectively manage its FX exposures. The phase two release of the Global Code will also address specifics relating to the principle of execution.

Englander Joins Rafiki

Rafiki Capital Management has announced that Dr. Steven Englander has joined the firm in Hong Kong today as the head of research and strategy.
Englander left Citi in March where he was global head of G10 FX strategy and Rafiki says he will use his years of experience analysing central bank decisions and geopolitical uncertainties to develop specialised research and unique trading strategies for the firm.
Rafiki, founded by Charles Firth and Lucas Kiely, former managing directors at Credit Suisse, focuses on expressing global macro views from an Asian perspective.

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.