Month: June 2018

Paul Chappell – In Memoriam

Paul Chappell, founder and CIO of currency manager C-View and director of education at ACI – the Financial Markets Association, passed away at the weekend after a short illness.
In a statement, Sue Attwood, president of ACI UK, says, “ACI UK is devastated at the loss of their colleague, supporter and friend Paul Chappell. Paul was a stalwart of the foreign exchange market – both as a veteran market practitioner with a long and illustrious career and as a committed proponent of industry best practice. We will all miss him very much. We extend our most sincere condolences to his wife Anne and his family at this time.”

IS Prime Adds to Agency Execution Offering

IS Prime, part of ISAM Capital Markets, is launching an NDF and forward execution facility within its agency desk.
The firm says its agency execution service leverages its relationships with top tier banks whilst also utilising the technology resources of ISAM’s hedge fund business. It provides mid-tier and smaller banks, hedge funds and voice traders with an anonymous, customised liquidity solution with liquidity from the major market making banks, non-bank LPs and selected ECNs.
“The addition of NDFs and forwards in our agency execution business shows a steadfast commitment to doing all we can to meet our institutional clients’ growing demands,” says Raj Sitlani, managing partner, IS Prime.

In the FICC of It

In this week’s In the FICC of It podcast managing editor Colin Lambert and editor Galen Stops continue the tradition (yes, we know it’s three weeks in) of slamming a white paper from one of the world’s authorities.
To find out the winner of this week’s “obvious conclusion” prize, as well as hear their thoughts on Mark Johnson winning bail and Deutsche Bank’s fine for FX malpractice, download the podcast now.
Along the way you will also hear about a panel that was “moany”, they give a sneak peek of an exclusive story and, most importantly, they go truly off piste by giving their World Cup predictions!

Exclusive: OTCXN Acquires Ogg Trading

OTC Exchange Network (OTCXN), which uses proprietary blockchain technology in a bid to eliminate trading counterparty and settlement risk on their trading network, has acquired Ogg Trading, a provider of FX trading technology.

Through this deal, which closed on June 18, 2018, OTCXN will acquire all Ogg Trading’s technology including the dark pool that it previously ran in partnership with Bloomberg. The dark pool is a complete matching engine technology stack. The plan is to add market data publishing to this platform in order to create a regular central limit order book (CLOB) with a lit pool of liquidity. Ogg Trading also has a liquidity aggregator and smart order router (SOR) system that can be deployed to run a quote driven market place.

And Finally…

This week the Global FX Committee meets in South Africa for its regular semi-annual meeting and it does so at a time when there are still lingering doubts in a small number of quarters over some of principles in the FX Global Code, and more broader doubts over adoption in certain market segments – not least the buy side.
If ever the FX industry needed an example of why the Code is important, however, it can be found in the latest regulatory finding against a bank.

Report: How Banks Are Avoiding Dodd-Frank Swaps Rules

A new report warns that US banks are using an obscure regulatory footnote to circumvent the swaps market provisions contained within Dodd-Frank.

The report was written by Michael Greenberger, a professor at the Maryland Carey School of Law and a former director of the Division of Trading and Markets at the Commodity Futures Trading Commission (CFTC), who has also served as counselor to the United States Attorney General in 1999 and as the US Justice Department’s Principal Deputy Associate Attorney General. It was published by the Institute for New Economic Thinking (INET).

Daniels Exits NatWest Markets

Ian Daniels has left his position as director, head of e-FX sales, EMEA, at NatWest Markets.

In this role he had been responsible for the distribution of the NatWest Markets electronic offering to financial institutions and corporates across the EMEA region.

Daniels joined NatWest in in 1998 and held a variety of roles within the bank’s FX business, joining the e-commerce team in 2006.

Profit & Loss understands that Daniel’s departure is a result of a broader restructuring at the bank, his next destination is not known at this point in time.

LCH Receives Recognition as a Central Counterparty in Mexico

LCH has obtained recognition as a central counterparty from the Banco de México.

The recognition for LCH’s SwapClear Service is effective from 22 June 2018 and provides a greater choice of CCPs to those participants affected by the Mexican clearing mandate.

With this recognition, LCH can expand clearing to Mexican-domiciled market participants to support their interest rate derivatives trading activity.  

LCH will continue to offer clearing to global participants for Mexican Peso-denominated interest rate derivatives as one of the 21 currencies offered by SwapClear. LCH clears for members and their clients based in 55 countries.

White Joins LMAX Exchange

LMAX Exchange has named Roland White to the newly created position of global head of institutional sales. He joins from Commerzbank where he was head of e-FX sales for eight years.
At LMAX he will report to CEO David Mercer and will be responsible for advancing the LMAX Exchange global growth agenda in the institutional segment, leading the institutional sales team and deepening relationships with institutions internationally.
In addition to his time at Commerzbank, White has, over a 28-year career, also held sales positions at EBS, Cognotec, Reuters, Citigroup and Standard Chartered.

And Another Thing…

I’ve spent too much time for anyone’s good on US legal and regulatory matters recently so, apart from saying that having listened to the oral arguments for Mark Johnson’s bail case I am much more optimistic about his appeal – the government’s case does appear to be at best careless, at worst misleading – I want to get into a regular staple of this column, the rumour mill!
It is inevitable when a deal gets done in the platform world, especially when it involves an exchange, that we inevitably look for the next deal.