Day: 29 May 2018

Clearing Mexican Peso Swaps Just Got a Little Easier

IHS Markit’s MarkitSERV has expanded its global network of derivatives clearinghouses by connecting to Asigna, the clearinghouse for Mexican listed and standardised derivatives.

With the new connection, it will provide standardised workflow and connectivity for matching, confirming and clearing Mexican peso TIIE 28 swaps.

“With the connection between MarkitSERV and Asigna, we can offer our clients an efficient and secure channel to transmit confirmed TIIE swap data to our clearinghouse,” says Catalina Clavé Almeida, CEO at Asigna.  “It also helps global banks on the MarkitSERV network do business in our market.”

Combining Currency Hedging with Alpha Generation

Adrian Lee, president and CIO at Adrian Lee & Partners, explains why combining currency hedging with alpha generating strategies can benefit investors.

When questioned about whether clients are looking for hedging or alpha from currency managers, Lee responds that many clients actually need both simultaneously.

He continues: “The challenge of risk management is that currencies are a biggish risk – there’s no long-run return really, so on paper it makes sense to reduce it. But when you start to do these hedges after you’ve got the international assets, you’ve got to get the currency exposure back… with that [you have] really strong cash flows because if you hedge half your 20% international, it’s 10% of your whole portfolio. If that goes against you [the impact on] performance in a quarter could be massive.”

Profit & Loss “The FoXys” Readers’ Choice Awards – 2018

Voted for by the Profit & Loss readership, the winners of the 2018 “FoXys” Reader’s Choice Awards were announced at the Forex Network New York conference held on May 25th.

Here is the full list of the firms that topped the voting this year in each award category:

Best Market Maker (Majors)
1: JP Morgan
2: Citadel Securities
3: UBS

Best Market Maker (EM)
1: HSBC
2: Standard Chartered Bank
3: XTX Markets

Best FX Prime Brokerage Bank 
1: HSBC
2: Natwest
3: Citi

Best FX Prime of Prime Services
1: INTL FCStone
2: Saxo Bank
3: Sucden Financial

Mok Tapped to Head FX at Straits Financial

Raymond Mok has been hired as head of FX at Straits Financial.

Based in Hong Kong, Mok joins from Sucden Financial, where he was head of FX and bullion development, also based in Hong Kong.

Prior to joining Sucden in 2012, Mok worked in investment solutions at BNP Paribas, before which he spent five years as the head of FX at MF Global Hong Kong.

AIMA Survey Highlights Growth in Responsible Investing

Hedge funds globally have allocated at least $59 billion to responsible investment (RI), according to a survey by the Alternative Investment Management Association (AIMA) and the Cayman Alternative Investment Summit (CAIS).
The survey of 80 asset managers with $550 billion in hedge fund assets under management (AUM) provides evidence of an increasing level of demand for RI across the hedge fund industry, with around 40% of the respondents saying they are already investing using responsible investment principles, with total assets in such investments worth $59 billion – a little over 10% of the respondents’ combined hedge fund AUM.

Global FXC Unveils Global Index of Public Registers

The Global Foreign Exchange Committee has launched a Global Index of Public Registers to serve as a central reference point for demonstrated commitment to the FX Global Code.
Following the initial publication of the Code in May 2017, Market Participants expressed interest in developing public registers as repositories of individual Statements of Commitment to the Code. The GFXC published recommended characteristics for public registers in July 2017, and several public registers have since been established. The Global Index will aggregate information from participating public registers and make it available in a single location.

Bloomberg Rates Added to NEX eFix

Bloomberg FX fixing rates (BFIX) will be added to the NEX eFix Matching Service, which enables customers to execute fixing interest electronically via the EBS Market platform, the firms have announced.
The eFix Matching service was launched in 2014 as a central market utility for reducing benchmark fixing risk, NEX says that it has seen a growth of 25 percent API to 65 percent API execution since 2014, driven by the continued trend towards automation and a shift in the way banks manage client fixing orders.