Day: November 5, 2018

DeVere Group Launches Crypto Asset Fund

DeVere Group has founded the DeVere Digital Asset Funds, something it says is “a suite” of digital currency solutions for experienced investors, in association with Dalma Capital Management, a hedge fund manager in the Dubai International Financial Centre. The firm has revealed that its strategy will be largely arbitrage-based, as it has identified “durable inefficiencies” across trading venues in cryptocurrency markets that it can exploit using algorithmic trading.
The launch was announced the day after Bitcoin reached its 10th anniversary.

Memorial Service to be Held for Paul Chappell

A memorial service will be held this Wednesday to celebrate the life of Paul Chappell, most latterly director of education for ACI – The Financial Markets Association.
The service will be held on November 7 at 11am London time at St Mary’s Moorfield, which is in Eldon Street and will be followed by a gathering at The Soda Room in The Botanist in Broadgate Circle.
Chappell, who, in 1999, founded currency management firm C-View after heading Bank of America’s FX business for many years, passed away in June after a short illness.

Mizuno Fined $900,000 by NFA

The US National Futures Association (NFA) has ordered Mizuho Capital Markets to pay a $900,000 fine for failing to adequately assess the risks of its uncleared swaps.
The Decision, issued by NFA’s Business Conduct Committee (BCC), is based on a Complaint issued by the BCC and a settlement offer submitted by Mizuho Capital, which neither admitted nor denied the allegations.
The BCC found that Mizuho Capital used inadequate processes to assess the risks of its uncleared swaps and back test, benchmark and validate its margin model.

NEX, Eurex, Launch Repo Clearing Solution

NEX Markets has announced that BrokerTec Europe has worked with Eurex Clearing to launch a new clearing solution for the European repo market.
The new clearing solution will be live by the end of 2018 and will allow existing BrokerTec clients to select to clear their repo transactions via Eurex Clearing. “This solution will allow market participants to consolidate their European repo and corresponding OTC and listed derivatives business under the single risk framework of Eurex Clearing, via the BrokerTec platform,” the firms say.

FXSpotStream the Stand Out as Early FX Volumes Reported

The first batch of FX platforms to report data indicate October saw a modest uptick in activity from September, although CME Group saw average daily volume (ADV) fall from an outstanding previous month.
The stand-out results come from FXSpotStream, which has reported another peak in activity at $35.9 billion per day. Not only does this represent a 12.5% increase from the previous record in September and a huge 80.1% increase year-on-year, it also means that FXSS is recording ADV very close to CboeFX, formerly HotspotFX.

In the FICC of It

In this week’s podcast Colin Lambert and Galen Stops focus in on what seems to be a growing debate about the value and indeed future of the FX Global Code following the acquittal of the three members of the Cartel. Discussing the implications of the jury’s decision and the reaction from the FX industry, regular listeners will not be surprised to hear that our two podcasters manage to disagree over a few aspects of both the case and the debate.

And Finally…

A couple of months ago I wrote a piece highlighting what I suggested was the first signal of a real shift away from anonymous trading toward disclosed. The column received, as is usual I should point out, a mixed response, with several of you pointing out that without the anonymous pools of liquidity price discovery would be severely hampered and liquidity would dry up. Back then, I used FX Committee data for the basis of my argument, but now it looks as though the platforms are providing the ammunition.

A Well Trodden Path?

Galen Stops examines the extent to which banks in different emerging markets face the same challenges when trying to build out their e-FX businesses, and questions the extent to which technology developments in these markets will follow a familiar pattern.

Talking broadly about how firms in emerging markets operate is often misleading, given the diversity of these markets and how widely the demands and conditions vary within each one. And yet, when it comes to banks in emerging markets that are looking to build out their e-FX businesses, there are some common themes that can be identified. For starters, these banks actually tend to have a sizable and often fairly diverse customer base, although each of these clients tend to trade FX on a smaller scale in terms of transaction size compared to their counterparts in more developed countries.

Shell Adopts New Bloomberg Treasury Service

Shell’s Foreign Exchange Central Treasury business has implemented a Bloomberg service that connects its subsidiaries globally.

The solution is now available for use by any corporate treasury operation in the world, Bloomberg announced today.

The new technology was built by Bloomberg in collaboration with Shell and connects the company’s central treasury office directly to its 718 operating units in 22 countries, so they can quickly and electronically exchange information. The functionality aims to help Shell manage its group risk with more than 200 distinct bank counterparties via the Bloomberg Terminal.

Saxo Announces Senior Management Changes

Saxo Bank, which describes itself as a fintech specialist focused on multi-asset trading and investment, has announced two changes to its board of management.

Current member of the board, Søren Kyhl, has been promoted to deputy CEO while also continuing in his role as COO, and Damian Bunce has been appointed to the board with the new title of chief commercial officer. In addition to Kyhl and Bunce, the Saxo board of management consists of CEO, Kim Fournais, and chief financial and risk officer, Steen Blaafalk.

“With Damian Bunce as a new member of the board of management, Saxo further increases the essential client and commercial focus. The promotion of Søren Kyhl to the newly established role as deputy CEO adds even more firepower to Saxo’s strategy execution and provides a steadfast long-term leadership of the bank