Month: July 2017

Pinto Joins BNP Paribas

BNP Paribas has hired Joseph Pinto in New York as head of electronic FX distribution for the Americas.

“Joe will work closely with the e-MMC, FX trading and sales partners to deliver our FXLM.COMM e-FX targets in Americas,” a spokesperson for BNP Paribas tells Profit & Loss.

In his new position at the French bank, Pinto will report locally to Subodh Karnik, head of FXLM.COMM North America, institutional sales, and globally to Joe Nash, head of European FX structuring.

Joe Café, vice president, global markets and Amish Naik, head of algo iX sales and product, Americas, will both be part of Pinto’s team at BNP Paribas.

FinTech Boom Exposes Silicon Valley Naiveté

Fintechs from Silicon Valley are being hampered by their lack of understanding about how the incumbent financial services firms in the market operate, according to Rosario Ingargiola, founder and CEO of OTCXN.

Discussing the biggest barriers to adoption for fintech solutions, Ingargiola explains that the primary concern is usually related to how these solutions comply with the existing regulations in the market.

Specifically, he says that financial services firms want to ensure that the necessary Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements are in place before they’ll even begin taking an in-depth look at the solutions being offered by fintech firms.

And Finally…

Many years ago I interviewed then EBS CEO Jack Jeffery, and one soundbite from that chat sticks with me to this day. When asked about his growth ambitions for what was already the biggest spot platform he answered simply, “Credibility in all currency pairs”.
Under its new guise of Nex Markets I am told the latest attempt is underway to build Cable market share, but I would not be surprised if it represents something of a controversial move and may actually cause people to question whether EBS Market can ever be relevant in Cable.

Global FXC Publishes Initial Guidance on Adherence Registers

Profit & Loss understands that several initiatives are underway to develop regional registers that may feed into a global repository that lists those FX market participants who have signed the Statement of Commitment to the FX Global Code and further that at least three banks have already signed the Statement of Commitment.
Against this background, the recently-formed Global Foreign Exchange Committee (GFXC) has published what it terms non-binding initial guidance on the establishment of these registers and how they may feed into a Global repository.

Gaining an Edge

It is a conundrum of the current foreign exchange market that while the world is awash with events and opportunities to trade, successful traders seem thin on the ground. Tony Sycamore recently left his FX sales role at Commonwealth Bank of Australia in Sydney and – leveraging his background in sales there and BNP Paribas, as well as his time on the prop trading team at Goldman Sachs in Sydney – has established TechFX Traders, a new advisory firm that seeks to provide structure and discipline to individual traders, and ideas to professionals.

NEX Launches EBS Benchmarks

NEX Data has unveiled the ‘EBS FX Benchmarks’, a series of 30-minute FX fixings. The new fixings went live on 26 July 2017 and, the firms says, “enhance the variety of global benchmarks available, bringing increased transparency to all FX market participants”.
The benchmarks are based on actual transactions and orders during the ten minute fixing window on Nex Markets’ EBS FX central limit order book. The fixings are published 24 hours a day, five days a week and include the full list of core EBS currencies.

Five More Banks Settle Benchmark Claims

Five banks have filed to settle a class action lawsuit brought against them over FX benchmark manipulation claims.
According to papers filed in New York, the settlement agreements resulted from “arm’s-length negotiations between highly experienced counsel and fall within the range of possible approval”.
Morgan Stanley has agreed to pay $50 million; Societe Generale $18 million; Standard Chartered Bank $17.2 million; Royal Bank of Canada $15.5 million; and Bank of Tokyo-Mitsubishi UFJ $10.2 million. All five banks continue to deny wrongdoing.

CFH Shuffles the Pack

Prime of prime provider CFH Clearing has announced senior changes at board level.
Lars Holst, co-founder of the firm and currently CEO of CFH Clearing has been appointed chairman, whilst Matthew Maloney, CFO has been promoted to CEO. Their new roles will commence on 1 August 2017.
Maloney, a Chartered Accountant who joined the business in 2014 played a key role in firm’s Playtech acquisition transaction, CFH says, and, as CEO, will be responsible for the day-to-day management of the business and overseeing all regulatory activities.

Hai Cloud Exchange Partners Thomson Reuters for FX

Haier Financial Holdings’ subsidiary, Hai Cloud Exchange (HK), has announced a strategic collaboration with Thomson Reuters, under which the latter will provide Hai with a suite of FX trading and platform solutions, including the firm’s Elektron Real Time (ERT), Enterprise Platform (TREP), and FXall on Electronic Trading.
Hai Cloud Exchange has initiated a 24 hour price streaming on Thomson Reuters platform FXall since 2016 and the firms say the new collaboration will provide an advanced, secure, and effective trading platform that enables Hai Cloud Exchange to provide clients with FX products faster and easier.

What Does the Future Hold for FX Prime Services?

There has been a substantial shift in FX prime services over the past two years: some FX prime brokers having been pulling back from the space, prime-of-primes have been expanding to fill the gap and now new firms are coming to market offering potential new solutions to the current credit constraints in the market.

But how will FX prime services evolve from here?

For the Q3 edition of Profit & Loss, we launched a survey to gauge market sentiment regarding this question. It’s not too late to have your say, the survey will close at midnight on July 31st :

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