Day: September 11, 2018

Hedge Funds Up in August: BarclayHedge

Hedge Funds reported a gain of 0.42% in August according to the Barclay Hedge Fund Index compiled by BarclayHedge, versus a 3.26% increase in the S&P 500 Total Return Index. Year to date, the Barclay Hedge Fund Index is up 1.55%, while the S&P has gained 9.94%.
“New all-time highs for the S&P 500 and Nasdaq coupled with a rally in US Treasuries helped set the stage for another profitable month for hedge funds,” says Sol Waksman, founder and president of BarclayHedge.

Carney to Stay On at BoE Until 2020

Mark Carney, Governor of the Bank of England, has agreed to extend his term to January 2020.

In a letter to Carney published today, Philip Hammond, the UK Chancellor of the Exchequer, said: “Further to our discussions and those that I have had with the Prime Minister, I am writing to ask whether you would be able to extend your term as Governor of the Bank of England to January 2020 to support a smooth exit of the United Kingdom from the European Union and an effective transition to the next Governor.”  

In his reply, the Governor said: “I recognise that during this critical period, it is important that everyone does everything they can to support a smooth and successful Brexit.

IHS Markit Adds BidFX to FX Post Trade Network

IHS Markit has announced that MarkitSERV will now offer integration with BidFX, an execution management system (EMS), for straight through post-trade processing of FX trades.

In working with BidFX and other FX trading venues on its network, MarkitSERV aims to deliver a comprehensive, flexible straight through processing (STP) solution for FX trading, which includes a hosted service to disseminate trades from execution venues to clients’ internal trade capture and risk systems. The low latency service is designed to eliminate manual trade booking and provides real-time trade notification, position and P&L updates, confirmation of dealt trades, and enhanced operation and risk control.  

Judge Tosses Axiom Last Look Class Action Against Deutsche

A New York judge has thrown out a class action lawsuit led by Axiom Investment Advisors against Deutsche Bank, which claimed the bank abused the practice of last look in its foreign exchange trading.
Judge Lorna Schofield threw out two class actions, arguing that neither satisfied the requirements for a successful class action in that different clients had different experiences and there was no common theme of “unjust enrichment”. She also leans repeatedly on the New York Department of Financial Services report into Deutsche, which at one point notes that the bank “as a general matter” appropriately calibrated its last look settings.

Unhedged FX Risks Hit Corporate Earnings

There were a number of revealing statistics in the results of a risk management survey released this summer by HSBC in which 200 CFOs – or equivalent members of the finance department – and 296 senior treasury professionals took part.

The most immediately eye-catching amongst them was the fact that 70% of CFOs said that their companies have experienced lower earnings due to significant unhedged FX risk in the past two years, and moreover, that these were risks which their treasuries could have avoided.