Month: October 2018

Former e-FX Head Joins Blockchain Firm in Hong Kong

Michael Ng has joined Kenetic as a senior trader, responsible for building out the firm’s OTC trading and markets business, as well as risk management solutions for cryptoassets.

Kenetic is a blockchain firm that seeks to expand the development and adoption of blockchain platforms through investments, advisory services, community and technology.

Based in Hong Kong, Ng joins from Natixis, where he spent over two years working as a director in the e-FX trading business and the global markets digital initiatives.

Mixed Results in Early Platform Volume Reports

The first group of FX trading venues to report average daily volumes (ADV) for September paint a mixed picture with regards to the level of trading activity, much as they did at the end of August.

The ADV on CboeFX was $35.8 billion in September, a 2.5% increase compared to the previous month and an 8.1% increase compared to September 2017.

FastMatchFX recorded an ADV of $18.6 last month, down 4.6% from the $19.5 billion it recorded in August and down 10.1% from the $20.7 billion ADV it saw in September 2017. By contrast, the ADV on the FastMatch FX Tape was $84.4 billion last month, beating the previous record high that it set in August of $83.6 billion.

BBH Head of Currency Strategy Joins Bannonckburn

Marc Chandler has left his position as global head of currency strategy at Brown Brothers Harriman (BBH) to join Bannonckburn Global Forex as managing partner and chief market strategist.

Founded in 2009, Bannockburn is a capital markets trading firm specialising in foreign currency advisory, hedge analytics, and transaction processing for closely held enterprises.

Based in New York, Chandler had been with BBH since 2005. Before that, he spent over three years as chief currency strategist at HSBC and over two tears in the same role at Mellon Bank.

And Finally…

I quite like reading academic papers on the FX market structure – often they state the obvious, but just as often they get the hamster back on the wheel in my head.
An interesting paper on spoofing and pinging in OTC FX markets was released recently, which does a great job of highlighting why platforms need to be on top of behaviour; how some LPs are nothing of the sort and how others’ behaviour could be confused with spoofing but shouldn’t be. The paper also provides support for my argument that Mark Johnson’s conviction should be over-turned.

ESMA Extends CFD Restrictions

The European Securities and Markets Authority (ESMA) has agreed to renew the restriction on the marketing, distribution or sale of contracts for differences (CFDs) to retail clients, which have been in effect since 1 August, from 1 November 2018 for a further three-month period.
ESMA says it has “carefully considered” the need to extend the intervention measure currently in effect and believes that a significant investor protection concern related to the offer of CFDs to retail clients continues to exist.

CFTC Charges TFS Icap Over FX Options Broking Practices

The US Commodity Futures Trading Commission (CFTC) has charged interdealer broker TFS-Icap with fraud and supervision failures.
In a Complaint filed in the US District Court for the Southern District of New York, the CFTC alleges that, from approximately 2008 through 2015, brokers at TFS-Icap offices in the US and the UK routinely attempted to deceive – and did deceive – their clients by engaging in the practices of communicating to them fake bids and offers and fake trades in the FX options market.