Day: 28 June 2018

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.

Using Data to Generate Alpha Signals

Charles Ellis, a trader and quantitative strategist at Mediolanum Asset Management, explains how data can be used to help generate alpha signals.

The first thing that Ellis points out is how trading firms can most effectively use data is dependent on their investment process and the type of research questions they are trying to use the data to answer.

For starters, he says, firms need to consider what investment time frame they are working towards.

“Then you have to ask which of these time frames can we add the most value to? What data do we have access to? And then it goes into what sort of questions can we answer using this data over these time frames?” comments Ellis.
 

Global FXC Names Leadership Team, Reports on Progress

The Global Foreign Exchange Committee has named Simon Potter executive vice president of the Federal Reserve Bank of New York, as chair for a one-year term. At its meeting this week in Johannesburg, it also nominated and elected Adrian Boehler, global co-head of FXLM and commodity derivatives at BNP Paribas, and Akira Hoshino, senior fellow and managing director, head of global markets trading at MUFG Bank, to serve together as co-vice chairs for a two-year term.
Speaking to Profit & Loss after what Potter says was a very productive meeting, he is keen to stress the diversity and engagement represented by the GFXC.

And Another Thing…

The FX industry is a vibrant, innovative place, but sometimes I think it forgets why it exists. This amnesia means as an industry, FX does not respond sufficiently on those occasions when people with no understanding of the nuances of the business suggest “improvements”.
So many news threads running through the industry at the moment seem to be idealising a totally transparent, all-to-all trading environment. This works in domesticated markets like equities, but it doesn’t work in global, institutional markets like FX – especially when we remember why we are here.