Day: 13 November 2017

Data: The Lifeblood of the FX Market

Probably the biggest change in the FX market over the past 10 years has been the availability of data. This is not to say that we never had data before, most voice traders relied upon their brokers to tell them where the market was – and although it was (very!) unreconstructed, it was data.

In terms of hard numbers on a screen, the market was revolutionised by Reuters terminals in the 1970s, enhanced by the launch of rival offerings (nearly all borne out of a news service), and then again with the launch of electronic trading and mobile apps.

CLS Enters the Market Data Fray

Galen Stops takes a look at the new data service launched by CLS Group.

In September, CLS announced the launch of its new data service, CLSData. Speaking to Profit & Loss at the time of
the launch, the firm’s CEO, David Puth, explained that CLS was “now entering the data market space in a very
comprehensive way”.

Since its launch in 2002, CLS has recorded every single transaction submitted to it, and considering that an average daily volume (ADV) of over $1 trillion is processed by CLS each day, this represents a massive and rather unique data set.

And Finally…

There is a chance later this week that we will know the decision of the GFXC feedback process on the possible rewording of Principle 17 , so I won’t go into the arguments put forward by Norges Bank Investment Management over last look in any detail. Instead I want to look at its observations around the use of algos and price verification and then to add to my growing list of foes in the analytical/academic space by pointing out why they are wrong!

NBIM Calls for Greater Transparency and Verifiability in FX Markets

Norway’s sovereign wealth fund, Norges Bank Investment Management, is calling for greater transparency and verifiability in FX markets because it believes that changes in the market structure in recent years has exacerbated the informational advantages enjoyed by dealers. It believes this change is required because it is the key to mitigating the impact of these informational advantages, without negatively affecting liquidity in what it describes as “this important market”. Inevitably, last look is involved, but the paper also highlights issues around algorithmic controls and liquidity provision.