Day: 27 November 2018

Integral Attracts $15 Million Investment

Morgan Stanley Expansion Capital has made a $15 million investment in Integral Development Corp, a capital injection the firms says enables it to continue the growth of its FX technology platform across a broader set of banks, brokers, and asset managers.
“The market opportunity for Integral has never been better,” says Harpal Sandhu, Integral founder and CEO. “Our focus on building the best FX solutions coupled with our unparalleled customer service has given us the largest installed base in the business – more than 200 leading institutions run on the Integral platform. We look forward to partnering with Morgan Stanley Expansion Capital and leveraging their deep experience and global resources.”

LCH Compresses $4.5 Billion in FX Outstandings

LCH says that its ForexClear members have reduced their notional outstanding by $4.5 billion through the use of the service’s compression solution. Citi and Standard Chartered Bank are among the first participants to actively compress their trades at ForexClear.
Compression is the process by which clearing members and their clients can eliminate offsetting trades to reduce notional outstanding and the number of line items in a portfolio. Capital requirements such as those introduced under the Basel III leverage ratio have incentivised banks to reduce notional outstanding.

ISDA Publishes Responses to Benchmark Consultation

The International Swaps and Derivatives Association, (ISDA) has published a statement summarising the preliminary results of a consultation on technical issues related to new benchmark fallbacks for derivatives contracts that reference certain interbank offered rates (Ibors).
The consultation, which was launched in July, covered the proposed methodologies for certain adjustments that would apply to the fallback rate in the event an IBOR is permanently discontinued. ISDA says it received 152 responses from 164 entities to the consultation from a variety of market participants.

Refinitiv Adds Thai Baht to WM Service

Refinitiv is enhancing the WM/Reuters Thai Baht Spot FX Benchmarks with data sourced from Matching, the firm’s anonymous central limit order book. This has allowed the Thai baht (THB) and Thai baht offshore (TOF) benchmarks to become ‘trade’ currencies using the WM/Reuters Trade Methodology. This change was launched on 1 October 2018 and is available now, the firm says.
Previously, the THB/TOF benchmarks were calculated from indicative interbank quoted rates, provided by multiple financial institutions. Following analysis about the feasibility of introducing transactional data from the available FX trading platforms and a public consultation, Refinitiv says it found that the inclusion of data from Matching achieves the necessary requirements regarding sufficiency, quality and data hierarchy to evolve these benchmarks to become trade based.

Shterenberg Joins Barclays

Barclays has appointed Alex Shterenberg as global head of G10 and EM e-FX Trading, based in New York.

In this role, Shterenberg will be responsible for leading Barclays’ electronic FX trading business globally. Profit & Loss initially reported on rumours that he was headed for Barclays in October, when he left his role as global head of FX algorithmic execution and head of e-FX trading for the Americas at Bank of America Merrill Lynch (BAML).

Fabio Madar, global head of G10 FX trading and distribution at Barclays, says

P&L Talk Series with Nomura’s Ian Daniels

Ian Daniels, executive director, head of e-FX distribution, EMEA, at Nomura, talks about algorithmic trading trends in the FX market.

Profit & Loss: Since you joined Nomura, you’ve been working on developing the bank’s algo offering, what are the latest developments there?

Ian Daniels: Our algos are now live on Bloomberg and will soon be live on a number of other major third party venues. I think that one of the benefits of being a later entrant into this space is that you have the experience of previous roll-outs to draw upon. So we knew that access to liquidity and the customisability of our algos would be important characteristics for our clients and that’s why we created algos that enable clients to execute in a default mode or that can be tailored to meet their specific needs.

Citi Raises $7 Million in Latest Education Campaign

Citi says it has raised a record $7 million through the 2018 edition of its annual e for Education campaign. Launched in 2013 by Citi’s foreign exchange and local markets (FXLM), the initiative has raised $30 million over the past six years in support of several key projects focused on youth education and literacy.
The banks says that more than 300,000 students have been supported by the campaign globally through various initiatives spanning 28 countries worldwide. Citi’s FXLM business donates $1 for every $1million of FX that clients traded via a broad range of electronic platforms including its single-dealer platform Citi Velocity and CitiFX Pulse for corporate clients. For the first time this year, the campaign also included local market bonds, in addition to FX.