Month: February 2018

Genesis Launches Crypto Lending Service

Genesis Trading, which offers two-sided liquidity for digital currencies, has today launched a new affiliate, Genesis Global Capital, an institutional digital currency lending business. 

Genesis Capital will allow institutional investors the opportunity to borrow bitcoin, ether and other digital currencies in large quantities over fixed-terms.

“Having been incubated by our affiliated company, Genesis Trading, we feel we’re in a great position to truly understand the pulse of the market and identify evolving industry needs quicker than most. We believe now is a great time to offer an institutional-focused lending service because it will increase general li

Van Wyk-Allan to Head AIMA in Canada

The Alternative Investment Management Association (AIMA) has appointed Claire Van Wyk-Allan as its new head of Canada.

Van Wyk-Allan, who takes over on April 2, joins AIMA from RBC Global Asset Management, where she served as business development manager, advisor channel sales.

Prior to joining RBC in 2013, she worked for Arrow Capital Management, where she spent almost four years as regional manager, covering advisors across Ontario.

She has been an active member of AIMA for almost a decade, including serving as a member of the AIMA Canada board since 2014. She has also been a two-time co-chair for Help for Children’s Hedge Funds Care Canada Gala.

Profit & Loss Talk Series with Raj Sitlani

Raj Sitlani, co-founder of IS Prime and managing director of ISAM Capital Markets, sat down with Profit & Loss in Shanghai to talk about the challenges associated with expanding into Asian FX markets and why technology remains the key differentiator for prime-of-primes.

Profit & Loss: So what’s your business focus in Asia?

Raj Sitlani: We have a large market share in Australia but, until recently, never truly had the manpower or the resources to crack the broader Asia market. However, there’s a very big opportunity in the region for us to provide our flagship product – which is a prime-of-prime service with aggregated FX liquidity – and so last year we set up a Hong Kong office through which we can build out our presence in North Asia and China.

Circle Buys Crypto-Asset Exchange

Mobile payments and cryptocurrency startup, Circle, has acquired the crypto-asset exchange Poloniex.

Circle is backed by $140 million in venture capital from investors including Goldman Sachs, IDG Capital Partners, Breyer Capital, Accel Partners, General Catalyst Partners, Baidu, CICC Alpha, EverBright, WangXiang and CreditEase.

Circle has two main business lines. According to the company, “Circle Pay helps people around the globe connect to one another and share value just as they would share any other kind of content on the open borderless Internet; Circle Trade serves institutions and investors as one of the world’s largest providers of crypto asset liquidity.”

Circle says that it is also planning to launch an app that will enable individuals to tap into crypto-asset investment “through a simple, seamless, mobile experience”.

Bitcoin Futures: Looking at the Nuts and Bolts

Speaking at a recent buy side event hosted by Profit & Loss and sponsored by CME Group in New York, Tim McCourt, managing director and global head, equity products and alternative investments at CME Group, talked about the nuts and bolts behind the exchange’s new bitcoin futures contracts.

In a fireside chat about the CME’s bitcoin futures contract – which launched in December when the excitement around bitcoin was spiking and the cryptocurrency was trading at over $18,000 – McCourt was quick to emphasise that the exchange operator is pleased with the performance of these products thus far.

McCourt noted that, “1,500 in ADV [Average Daily Volume] and 1,500 in OI [Open Interest], with 800 accounts and global adoption of the product – these are all very strong indicators of long-term success for a contract, and actually it’s an exception to have reached these numbers so quickly”.

NEX, CFETS Launch China-Based FX Trading Platform

NEX has partnered with the China Foreign Exchange Trade System (CFETS), China’s interbank market trading platform and infrastructure provider, to launch ‘CFETS FX2017’ (FX2017), a new trading platform for the Chinese FX market.

Having selected NEX to deliver the underlying technology in June 2016, CFETS launched the first phase of the project with a central limit order book (CLOB) platform for spot CNY on December 4, 2017.

As an anonymous execution capability for the Chinese market, FX2017 is designed to offer market participants access to a central pool of liquidity and a public reference point for spot CNY pricing.

And Finally…

The paper has been a long time in the works, so the IA’s proposed guidance around last look may not burst the bubble of those optimists who think last look is a dead issue, but it should concern providers that their clients apparently think they don’t go far enough. That said, I also think this paper highlights how the buy side can be too demanding around certain issues when it could focus on having a more positive impact by doing something itself.

Edging Towards the Exit?

The use of a last look window by market makers will decrease in 2018, but don’t expect the practice to disappear any time soon, says Galen Stops.

If you’re sick of reading endless articles and hearing lengthy debates at conferences regarding last look, then the first part of this prediction will be music to your ears: in 2018 the industry conversation will move on from this topic.

This prediction comes despite a second one, that last look will not disappear in 2018.

Yes, XTX Markets made headlines by committing to a zero hold time on their FX trades – not to be confused with offering firm liquidity – while other market makers have made more private assurances of a similar kind.

Buy Side Group Releases Last Look Guidelines

The UK’s Investment Association (IA) has today published a number of guidelines regarding the use of last look, seeking to address concerns that this practice can negatively affect the ability of asset managers to meet the needs of their clients.

As part of the guidelines, the IA has also identified a number of instances in which last look should no longer be considered acceptable due to the potential for misuse of information by the liquidity provider.

These include: pre-hedging during the last look window, trading activity based on information derived from rejected trades and trading activity based on information from a request for quotation which is in progress or those that are not won.

ECB Minutes Highlight Currency Manipulation Concerns

The minutes from the European Central Bank’s latest monetary policy meeting reveal anxieties about nations manipulating their currencies for competitive gain.

According to the ECB minutes, which were released today, “A number of remarks were made about recent exchange rate developments.”

It was noted in the minutes that while the euro exchange rate is not a target of ECB policy, movements in the exchange rate are deemed important insofar as they can affect the outlook for growth and inflation in the euro area.