Month: October 2018

ADM Joins oneZero as FX Clearing, Liquidity Provider

ADM Investor Services (ADMIS) will be providing FX prime brokerage, execution and settlement services through oneZero Financial Systems’ EcoSystem.

This expansion of the FX services and distribution network will make ADMIS’s professional and institutional offerings available to a broader set of market participants.

“Having ADMIS join our EcoSystem greatly enhances the current offerings available to our users,” says Andrew Ralich, CEO of oneZero. “ADMIS is an established, well-capitalised firm with global reach. Their participation in our EcoSystem gives our customers new access to a counterparty that is highly regarded across the derivatives industry.”

ErisX Expands With Three Senior Hires

The recently launched platform for digital asset trading, ErisX, has hired Kelly Brown as chief commercial officer, Liz James as head of clearing and Michael Piracci as senior counsel.

Brown will be tasked with developing an “intermediary-friendly approach” to developing a safe and liquid digital asset market on the platform. Before joining ErisX, Brown was most recently managing director and head of intermediary, bank and membership segments at CME Group. Brown also held roles in institutional sales at Bank of America and Cargill Investor Services.

CME-NEX Link Up Gets US Thumbs Up

The boards of CME Group and NEX Group have announced they have received clearance under the Hart-Scott-Rodino Act from the United States Department of Justice – Antitrust Division for the proposed acquisition of NEX by CME and Bidco – an important step in the process to complete the acquisition..
CME and NEX have also received the relevant regulatory approvals from the UK’s Financial Conduct Authority (FCA) and regulators in the US, Germany, Italy and Sweden, and have made the requisite pre-notifications in Hong Kong.

360T Volumes Up in September

Deutsche Borse has reported that its foreign exchange business, 360T, handled average daily volume of EUR 75.7 billion in September.
This represents a 10.3% increase on August’s data and the exchange group’s website says it is also a 17% year-on-year increase, although at face value this may not be the case. Since July 2018, 360T has incorporated the volumes from Gain GTX, which it bought earlier this year, however it’s historic data does not appear to include GTX data reported at the time.

In the FICC of It

In this week’s podcast Galen Stops reports from Stockholm on his observations from last week’s Profit & Loss conference in that city, and his interruption by abseiling window cleaners gives Colin Lambert the opportunity to tell his favourite window cleaning story.
On more pertinent topics, they discuss the obvious discord between Sweden’s central bank and local economists and Lambert gives his thoughts on the start of the Cartel trial – stressing the differences between this and the impending appeal of Mark Johnson.
Technology is also in our podcasters cross hairs as they look at blunt instruments to manage market risk and Lambert asks the philosophical questions, ‘Is the market always lagging technology and is this a good thing?’ and ‘at what stage do market participants revert to making the tech work for them rather than have the tech dictate their modus operandi?’
There’s also a quick skip through the latest from the crypto world and Lambert also feels obliged to call out one company for its chaotic start to live under a new moniker, and another for good “spin” around its volume numbers.

CFTC, DoJ Charges Former Tower Traders Over Spoofing

The US Commodity Futures Trading Commission (CFTC) has issued an Order filing and settling charges against Kamaldeep Gandhi, in which Gandhi admits to engaging in manipulative and deceptive schemes, along with other individuals, which involved thousands of acts of spoofing with respect to a variety of futures products traded on the Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange, and the Commodity Exchange (Comex).
At the same time the US Department of Justice (DoJ) charged Gandhi and two alleged co-conspiritors, Bruce Mao and Krishna Mohan, with spoofing offenses and says Gandhi and Mohan have admitted to the charges.

And Finally…

Information leakage is the new “issue” in foreign exchange markets for many players (actually its just signalling risk renamed surely), and for several participants it is a question of their past catching up with them in how the LPs are not willing to help them anymore. For others, however, it is a genuine issue, but I am not sure how easy it is to solve given how everything we do online leaves a digital signature – and trading in no different.

Prime Trust Joins OTCXN

OTCXN has announced that it has signed Prime Trust to serve as a neutral, third-party custodian of assets for trading entities and exchanges that use OTCXN technology to facilitate clearing and settlement of OTC block trades and cross-exchange trading. This is the second addition of a third-party custodian this week, earlier it was announced that Kingdom Trust had also joined.
Prime Trust is a chartered, regulated and insured trust company with full fiduciary powers and AML/KYC procedures supporting both US and international clients, OTCXN says.

GMEX, Demand Derivatives to Launch “Revolutionary” Futures Exchange

Demand Derivatives, a creator of what it terms “novel” derivative instruments, and GMEX Group, a provider of exchange and post-trade business technology solutions, have announced they will combine forces to launch what they term a “revolutionary” US-regulated futures exchange, RealDemand Board of Trade (RealBOT), and clearing house, RealDemand Clearing (RealClear).
The new businesses are slated to open in 2019, subject to CFTC and SEC approval, and the two firms claim they will create “unique and complete solutions to problems currently affecting the futures industry”.

Itiviti Unveils Packaged FX Solution

Trading technology and financial infrastructure provider Itiviti has launched Itiviti FX, a foreign exchange trading solution that the firm says is built for today’s dynamic FX market landscape and designed for compliance with the latest regulatory requirements including MiFID II. 

Using a modular, app-based architecture Itiviti FX combines out-of-the-box FX trading capabilities with flexibility, enabling highly scalable and easily customised solutions. It offers cross-asset trading functionality, including algorithmic trading, distribution service, order and pre-trade risk. It also features a liquidity aggregation service, which allows for mixing of different types of liquidity from multiple sources.