Month: June 2018

Paul Chappell 29/6/1953 – 4/6/2018

Friends and colleagues are invited to a service to celebrate the life of Paul Chappell, who sadly passed away last weekend. It will be held on Monday July 9.
A Funeral Mass will take place at 9:30am at the Holy Family Church, 194 Knightsfield, Welwyn Garden City AL8 7RQ, followed by a reception at the Chappell family home, 63-65 New Road, Welwyn, Digswell, AL6 0AL.
Paul’s family will attend a private burial at 11:00am and then join friends and colleagues at their home.
In a message, Paul’s widow Ann says, “We look forward to seeing you and sharing great memories with you all.”
Mourners are asked to share transport if possible as parking is limited. The nearest train station is Welwyn North.
In lieu of flowers, the family requests that donations in memory be made to Stevenage Haven (homeless shelter) – a cause supported by Paul during his life, or a charity of your choice.
To assist with preparations, those people deciding to attend the celebration are asked to contact David Woolcock on davidpwoolcock@outlook.com ahead of time.

XTX: Last Look Defense is “Nonsense”

Jeremy Smart, head of distribution at XTX Markets, is critical of arguments that pre-hedging in the last look window enables FX market markets to keep quoting prices, even in difficult market conditions. 

“The reality is that’s a nonsense. The basis on which a price is being made should be clear between a liquidity provider and the consumer. Now it’s not enough for me as an LP to turn around and say sometimes I’m a principle and sometimes I’m agent.

“If you’re agent, charge a fee and be clear that you’re passing on the exact fill that you got in the market to the customer, but do that before the transaction, not selectively transaction by transaction. So there needs to be much more clarity around that,” he says.

ASIC Warns Retail OTC Industry Over Conduct

The Australian Securities and Investments Commission (ASIC) has called on participants in the retail OTC derivatives sector to improve their practices after recent ASIC activities showed their conduct “fell short of expectations”.
The products offered by retail OTC derivatives issuers in Australia include binary options, margin foreign exchange and contracts for difference.
ASIC says that a recent review of 57 retail derivative issuers identified a number of risks associated with the products offered to retail investors by OTC derivatives issuers.

Back to the Futures: Giving Institutions a Reliable Way to Capitalise on Cryptocurrency

By Obi Nwosu, the CEO and co-founder of the cryptocurrency exchange, Coinfloor, 

It has been a challenging financial environment for investors since the financial crisis, and difficult to achieve returns on deposits and short term investments. In response to this, many have been seeking alternative investment vehicles to diversify their portfolios. Bitcoin is never far from the media headlines – but what will it take to convert this volatile retail bet into a viable investment option?

The key lies in stablising its price. Cryptocurrency is, of course, decentralised, which means there is no central authority putting measures in place to govern its price or manage volatility. This instability is currently preventing cryptocurrency from acting as a store of value, and subsequently achieving its originally intended purpose as the future of money.

Batavia Joins UBS

UBS has hired Amit Batavia as director, EMFX trading, in Singapore.

Batavia joins from HSBC, where he spent seven years working on the FX trading team in both Singapore and Hong Kong.

ASIC “Disappointed” in Lack of Progress in NAB FX Reform

The Australian Securities and Investments Commission (ASIC) has expressed disappointment at the failure of National Australia Bank to fully implement a reform programme linked to an Enforceable Undertaking (EU) levied by ASIC after deficiencies were found in the bank’s wholesale spot FX business.
NAB, along with the other major Australian banks, were fined by ASIC in December 2016 for a series of failures in their FX businesses, including attempts at front running orders, manipulating fixes and inappropriately sharing confidential information.

LCH Begins Clearing Mexico-based Trades

LCH is now actively clearing trades on behalf of a Mexico-domiciled participant.

BBVA Bancomer completed a cleared Mexican peso denominated TIIE  interest rate swap, with BBVA SA Madrid acting as the clearing broker.

The transaction marks the first time a Mexican participant has used LCH SwapClear, following LCH’s recognition as a Foreign Central Counterparty (CCP) by Banco de México earlier this month.
John Horkan, LCH Group COO and head of North America, says: “We’re excited that BBVA Bancomer has become the first Mexican participant to clear its interest rate derivatives at SwapClear. This milestone swiftly follows LCH’s recent recognition as a Foreign CCP by Banco de México, allowing Mexican entities the benefit of accessing the global liquidity available in SwapClear.”

Stater Adds New Compliance Head

Simon Henry has been appointed by Stater Global Markets as head of compliance.

He joins the FCA regulated prime-of-prime brokerage with over 20 years’ experience in the FX industry; 17 of those years in compliance-based roles.

Henry’s experience includes head of compliance roles at Gain Capital, Forex.com, London Capital Group, ETX Capital, LMAX Exchange and Goldenway Global Investments. He also has deliverable FX experience, having worked for both HIFX and Moneycorp earlier in his career. Henry has held CF10 and CF11 accreditations with the FCA since 2006 and is a Fellow of the International Compliance Association.

Barclays Looks to “Digitise” Business

Barclays announced three senior appointments that it says will help to digitise its markets business.

Nas Al-Khudairi was promoted to oversee electronic trading platforms based in London, Mauricio Sada-Paz has joined the bank in London as global head of e-FICC product and distribution, and Brett Tejpaul has been promoted to lead digital strategy for Barclay’s markets business, alongside his existing markets client strategy role, in New York.

According to Barclays, the bank expects its digitisation strategy to be instrumental in defending its business and pursuing new revenue opportunities in the face of technological advances that are disrupting the status quo of the banking industry.

MahiFX Unveils MFX Echo

This increased focus on execution quality has not been industry-wide, however, predominantly these analytics packages have been used by top end banks and some (but by no means all) of the larger, more sophisticated asset managers. Beyond those groups the challenge of cost or complexity (or both) has limited access and the willingness to engage with the data. Financial technology provider MahiFX is seeking to redress the balance, however, with the launch of MFX Echo, a trade analysis, liquidity visualisation and price-explain tool.