Month: April 2018

R5 Selects Kx Technology

R5 has implemented Kx technology to power R5-SHCH Connect, a new service that links banks in China with London’s FX market.

UK Prime Minister Theresa May announced the launch of R5-SHCH Connect during a state visit to China on February 2.

Kx for Flow is an established eFX trading platform, which combines order management, trade execution, risk management, transaction analytics and alerts management. This provides R5 and its clients with electronic execution and effective risk management with the benefits of being on a centrally cleared platform. Kx for Flow is built upon the kdb+ database platform.

Societe Generale Partners with BestX

Societe Generale Corporate & Investment Banking (SG CIB) has announced a partnership with BestX, an independent transaction cost analysis (TCA) provider for algo FX spot execution.

The partnership with BestX will enable SG CIB clients to assess the costs and execution performance of their FX transactions through an analytical framework, the bank says. In addition, clients will be able access to a unique set of analytics, which will measure many aspects of execution performance, including spread and impact costs and signalling risk.

Capitolis Goes Live with FX Credit Service

Capitolis has gone live with a foreign exchange credit switching service, Capitolis Switch.

In a release issued today, Capitolis says that its mission is to address capital markets constraints in the financial system and claims that, with the launch of Capitolis Switch, a key credit issue is addressed. The firm says that this service will enable the unbundling of execution, processing, capital and risk in FX prime broking (FXPB).

Capitolis says it is working with Citi, Jefferies and FXCM in launching this new service.

RegTech Firm Secures New Investment

RegTech specialist, Muinmos, has attracted investment from Lars Holst, former CEO of CFH Clearing, and Lars Torpe Christoffersen, an entrepreneur.

The firm itself is an automated onboarding organisation that was founded by Remonda Kirketerp-Møller in April 2012.

Holst’s 20-year career in the FX industry includes several senior executive positions at Saxo Bank and Currenex prior to co-founding CFH in 2008. He was at the helm of CFH for almost a decade, with the firm ultimately being sold to PlayTech for $120 million in November 2016. According to a release issued today, Holst will play an active role in muinmos, having been appointed as chairman of the board.

A Closer Look At: Next Generation TCA

David Wright, managing director and global head of FX electronic distribution, and Jian Chen, head of Quantitative Solutions and Innovations (QSI), at Morgan Stanley, talk about how Transaction Cost Analy- sis (TCA) is moving to real-time.

Profit & Loss: Given that all the major single-dealer platforms have a TCA component now, how do you look to differentiate yourself in this area?

David Wright: So where the post-trade TCA adds value from the client perspective is as a basic benchmarking tool for the algos that they’re running. Then on the pre- trade side where we initially differentiated ourselves was on calculating transaction costs under a number of regimes, giving clients the ability to better understand the expected execution costs of one algo versus another.

And Another Thing…

I must confess something I did not expect to come out of last week’s Forex Network London was people saying to me that they are worried about the influence of data. I should stress that they were not suggesting data was useless – rather the inference was that some of their service institutions are over-reliant upon it and, even worse, a few have seen it as a panacea and subsequently forgotten some of the more traditional values in a relationship.

360T Announces Two New Deals

360T has been selected by M&G Investments to provide streamlined workflow technology for order handling and execution, and, separately, has agreed a partnership with Crown Agents Bank (CAB), a global wholesale bank that specialises in emerging markets.

In a release issued today, 360T says that the key to the selection of its Execution Management System (EMS) workflow solution by M&G was its stated commitment to develop the service to meet the cost, regulatory and best execution requirements of M&G while “engaging in an ongoing virtuous cycle of functional and capability innovation”.

Talk Series with Monex

Profit & Loss sat down with Javier Alvarado, Monex Casa de Bolsa CEO, and Eduardo Gomez, Subdirector of Operations for FX at Monex, to discuss the group’s acceptance by CLS as the first Mexican member firm. Javier Alvarado:  Monex started 32 years ago and has evolved from a very small FX house into a bank with the biggest international payments for private companies in Mexico. Monex is a public company that has close to 20% market share of international private payments in Mexico, with a base of close to 70,000 active customers around the world, 45,000 of which are private corporates and companies in Mexico.

Survey: Derivatives Trading to Grow Despite Rising Costs

In a new survey conducted by the International Swaps and Derivatives Association (ISDA), a majority of respondents said that they expect derivatives volumes to stay flat or increase in the future, despite also predicting that the cost of trading these products will increase.

Asked about their expectations for overall derivatives activity, 83% of those surveyed said that they thought volumes will increase or remain the same over the next three to five years.

The same proportion felt end-user activity will rise or remain unchanged over the same period. When asked to rate their optimism about the future of derivatives on a scale of one to 10, with 10 being the most optimistic, 65% opted for between seven and 10.

A Closer Look At: The Launch of a New Algo

Mark Goodman, head of electronic execution, E&C, at UBS, talks about the latest addition to the bank’s algo suite.

Profit & Loss: UBS recently launched a new algo, called ORCA-Direct. Can you tell us a bit more about the design and logic behind it?

Mark Goodman: ORCA-Direct came about when we were trying to improve the technology available to our FX voice traders as they execute risk in the market. As a general rule, the more liquidity they can access the better, so we made sure that we’re connected to the core ECNs and now have six on our platform