Day: 6 December 2018

And Another Thing…

So already in early December I’ve had enough and think it’s about time the readership did some work, so today is all about you – the readers – making a choice. These awards are called the Irrationals and today…well it’s truly irrational!
Throughout our conference series this year, our editor-in-chief Julie Ros has made herself busy taking pictures of speakers socks (yes, I know, but what can I say?). Anyway, we thought it would be fun to have you decide who wore the best socks this year – and of course into the bargain we hope to ratchet up the competition levels for next year’s conference series.

Northern Trust Buys Bex

Northern Trust has announced an agreement to acquire Bex, a provider of foreign exchange software solutions.
The bank says the acquisition will give it ownership of a platform providing algorithmic FX trading, global liquidity aggregation and transparency in execution and pricing to institutional clients worldwide. The agreement builds on an exclusive partnership between the firms announced in 2016.
“Bex has been a key differentiator for Northern Trust, increasing the depth and breadth of our global FX execution capabilities,” says Pete Cherecwich, president of corporate & institutional services at Northern Trust. “In an evolving FX marketplace, this acquisition provides a foundation for sustained growth and innovation on behalf of our clients.”

The FinTech Challenge: Scale or Independence?

There comes a point for most successful fintech startups when they face a decision: either join part of a larger organisation in order to scale up their business or continue to remain independent.

There are trade-offs on each side of this decision, as Mike Harris, president of Campbell & Company, noted at Forex Network Chicago. Speaking from a client perspective, Harris said that he could see benefits from either side, but added that when senior figures at a fintech leave post-acquisition it is normally a warning sign.

“One of the things that we watch are the people, not just the founders, but the core people that you’re working with – the relationship managers, the technologists – if they start to depart, either because they’re asked to leave or because it’s not what they signed up for, that’s usually kind of the writing on the wall,” explained Harris.

Cboe Targets Regional Banks with UBS Credit Arrangement

Cboe FX announces today that UBS is acting as a Central Credit Intermediary (CCI) for certain counterparties wanting to access its platform, with an eye to bringing on more liquidity from regional banks.

Under the new arrangement, regional banks or other financial institutions that might have limited bilateral credit can leverage UBS as a spot FX intermediary to alleviate this hurdle, settling all trades exclusively with UBS. The potential benefit of this for these institutions, according to the exchange, is that they will gain exposure to a greater number of Cboe FX participants despite the absence of direct credit relationships.

Refinitiv Volumes Take a Slight Dip in November

The total average daily volume (ADV) of FX trading across Refinitiv platforms in November 2018 totaled $394bn, while the ADV of spot trading was $90bn.

This means that spot volumes were down 4.3% compared to October and November 2017, when Refinitiv – then Thomson Reuters – recorded an ADV of $94 billion.

The overall FX volumes – which include spot, forwards, swaps, options and NDF products – was down 5% month-on-month, but largely flat compared to the ADV of $397 billion recorded in November 2017.