Day: 7 August 2017

BTMU Settles With CFTC Over Spoofing Charges

The US Commodity Futures Trading Commission (CFTC) today issued an order filing and settling charges against The Bank of Tokyo-Mitsubishi UFJ (BTMU) for engaging in multiple acts of spoofing in a variety of futures contracts.

Specifically, the CFTC finds that BTMU was responsible for spoofing contracts traded on the Chicago Mercantile Exchange (CME) and the Chicago Board of Trade (CBOT), including futures contracts based on United States treasury notes and eurodollars.

BTMU is now required to pay a $600,000 civil monetary penalty and to cease and desist from violating the Commodity Exchange Act’s prohibition against spoofing. The CFTC became aware of the conduct through BTMU’s voluntary self-reporting of the wrongdoing.

NEX Optimisation Expands Harmony for MiFID II Compliance

NEX Optimisation has enhanced its existing messaging services to help clients prepare for the introduction of MiFID II on 3 January 2018.
The firm says it has extended Traiana’s Harmony messaging network to enable participants to exchange additional information to assist with meeting a number of regulatory obligations under MiFID II.
This includes support for data elements associated with transparency, transaction reporting, venue execution, instrument and entity identifiers, timestamps, OTC post-trade indicators and unbundling of research as well as execution fees.

What are the Key Drivers of Buy Side Algo Adoption?

A number of factors, including the increased need for an audit trail for FX execution and a desire to limit market impact, are driving the adoption of algorithmic execution tools amongst buy side firms, says Petra Wikström, global head of execution and alpha solutions at BNP Paribas.

Although Wikström says that the continuing automation and electronification of the FX market naturally leads to more firms broadly using algos as one of their execution tools, there are other specific factors driving the adoption of algo tools by the buy side.

And Finally…

I fundamentally believe that last look remains the biggest threat to the industry’s development and recovery from past ills, and to help build understanding further you have five weeks or so to submit your feedback as requested by the Global FX Committee on the language in Principle 17. I suspect I may have some bad news for the GFXC, though, because while there is consensus around the specific language, there also seems to be a consensus that it does not cover the subject in enough depth.