Day: November 6, 2018

Liquidity in FX: Not All Prices are Created Equal

When clients are looking at prices in an aggregator they could see a bunch of quotes that appear to be identical to one another.

But as Roel Oomen, managing director, electronic FX spot trading at Deutsche Bank, explains, this does not mean that the transactions costs for dealing on each of those quotes is exactly the same.

This is because rejection rates can vary, the liquidity that’s shown at these quotes can vary, and the risk management style of the liquidity providers (LPs) in the aggregator might vary, with some externalising the risk and other internalising it. But how to tell the two apart?

P&L Talk Series with Carlos Mosquera Benatuil

Carlos Mosquera Benatuil, the CEO of Mexico-based Solidus Group, which focuses on digital finance through its crypto hedge fund, Solidus Capital, and crypto OTC desk, Solidus Markets, talks to Profit & Loss about why cryptoassets are more than just a vehicle for speculation in Latin America.

Profit & Loss: What are some of the key differences you see between crypto trading in Latam compared to the US?

Carlos Mosquera Benatuil: So there are only a few places for cryptoasset price discovery in Latam, but the bigger exchanges are pretty good. The market still lacks sophisticated traders, however, which has actually been a challenge for us as we’re looking to hire staff for the proprietary trading desk that we’re building out.

Trade Associations Team Up to Promote FX Code in MEA Region

ACI – The Financial Markets Association (ACI FMA), has teamed up with the Interarab Cambist Association (ICA) to promote the FX Global Code amongst financial institutions in the Middle East and Africa.

The ICA is a trade association representing professionals working at banks and financial institutions across the Middle East and Africa. Established in 1972, it has members in 15 countries and provides training and workshops relating to asset classes including FX, interest rate products, equities and commodities.

As part of the collaboration, the ACI FMA and the ICA recently combined their annual member conferences – the ACI World Congress and ICA Annual Conference – for the first time in Cairo, Egypt.

Blockchain Company Completes $80m Private Placement

Bitfury Group, a blockchain technology company, has closed an $80 million private placement with global institutional and corporate investors.

The private placement was led by Korelya Capital, the European growth capital firm backed by Korean firm, Naver Group. The placement was joined by investors such as Macquarie Capital, Asian financial institution Dentsu Inc, European investment company Armat Group, European fund managers Jabre, Lian Group, special situations investment firm Argenthal Capital Partners, insurance group MACSF and Galaxy Digital, a specialised digital asset merchant bank led by Mike Novogratz. iTech Capital, an Eastern European tech specific private equity firm and historical investor in Bitfury, also took part in the placement.

oneZero Releases Market Data Tool for MT5

Today oneZero Financial Systems has released a new tool, called Market Data Sentinel, which automates the reporting, monitoring, accounting and compliance of exchange market data used on the MetaTrader 5 platform.

“We are excited to introduce Market Data Sentinel to address a real market need around reporting and monitoring exchange market data on MetaTrader 5,” says Andrew Ralich, CEO of oneZero. “All MT5 brokers, whether they currently use oneZero’s Liquidity Hub or not, can take advantage of this powerful solution to a previously time-consuming manual workflow process.”

He adds: “Market Data Sentinel represents our continued response to the needs of both our clients and the market. We always look for ways to leverage our superior technology development resources in support of important business needs that will enable our clients to focus on what they do best and grow their business, while relying on oneZero to make their processes more efficient.”

Boehler, Francis, Exit BNP?

Adrian Boehler has, according to reports, left his position as co-head of FX, local markets and commodities at BNP Paribas. In another development, market sources tell Profit & Loss that Sally Francis, head of institutional sales for FX and local markets at the bank, has also left.
Boehler is seeking another career opportunity according to an internal memo cited by Bloomberg News. He joined the bank in late 2011 as global head of institutional sales, after serving as head of FX sales for Europe at HSBC.

EBS Markets FX Volume Higher, Refinitiv Lower in October

EBS Markets has reported average daily turnover (ADV) of $88.7 billion in spot FX products in October, a 3% increase on September and a 10% increase year-on-year. The firm, the name of which will be reverting to EBS following the completion of its takeover by CME Group, has now reported three consecutive monthly increases, following a sharp drop in July – at $88.7 billion turnover is slightly below the average for the first nine months of the year of $93.2 billion.