Day: July 14, 2017

Why Technology is a “Game Changer” for Regional Banks

Dan Torrey, global head of FX e-commerce sales at Northern Trust, explains how technology can help revolutionise regional banks’ e-FX businesses.

Torrey concedes that, prior to joining Northern Trust, he had been uncertain about whether or not claims that the increasing availability of technology is helping to democratise the FX markets were accurate.

However, he says that his own experience in building out Northern Trust’s e-commerce business has convinced him that these claims are not overblown.

“What’s happened is that through the technology, being able to bring in house better e-commerce pricing, being able to reduce a lot of latency, being able to expand the pairs in which we’re competitive and then to provide that downstream to our customers, means that we’re not just another custodial bank offering to them, we can actually competitively go after third-party accounts where we couldn’t’ get them before,” says Torrey.

Editorial: Are Last Look’s Chickens Coming Home to Roost?

Few can be surprised that such an increasingly emotive issue such as last look has led to a lawsuit. As someone who has disliked the practice for more than a decade and written about the risks associated with the regular rejecting of trades for more than seven years this class action lawsuit is not surprising – but I cannot help avoid the feeling that this is both someone trying it on, while at the same time it is the worst case scenario for the defendants.

Six Banks Face Lawsuits over Last Look

Six banks are facing a class action lawsuit over alleged abusive practices involving the use of last look in their e-FX businesses.
The six, BNP Paribas (which has already been fined by the New York Department of Financial Services for, amongst other things, it’s broad use of last look), Citi, Credit Suisse, Goldman Sachs, Morgan Stanley and Royal Bank of Scotland face a claim from former retail broker-dealer Alpari (US) in the hundreds of million of dollars according to documents filed in a New York court this week.

AIMA Publishes MiFID II Best Execution Guide

The Alternative Investment Management Association (AIMA) has published a guide for alternative investment managers to help them understand and implement the enhanced best execution obligations under the European Union’s updated Markets in Financial Instruments Directive (MiFID2), which will apply from January 2018. AIMA’s MiFID2 Best Execution Guide, which is only available to AIMA members, outlines the MiFID2 obligation to achieve the best possible results when executing transactions. These rules were originally introduced under MiFID1 and have now been enhanced in a number of areas.

Vela Buys Object Trading

Market data, and analytics technology provider Vela Trading Technologies, has signed a definitive agreement to acquire Object Trading, a provider of a direct market access (DMA) platform, pre-trade risk controls, and analytics applications. The firm says the acquisition further strengthens its trading and market data technology products and services, delivering a set of solutions across the entire electronic trading workflow to help clients reduce total cost of ownership, comply with ever-changing regulatory requirements, and evolve their global electronic trading strategies.