The early signs from US bank reporting season is that FICC divisions haven’t done well at all and the admission from one bank that the decline in earnings was due to clients being reluctant to enter markets signals to me that the FICC business model has to change. Just as news outlets can’t have hundreds of reporters sitting around waiting for the Titanic to sink again, so banks need a better balanced FICC business – and that means more traders proactively taking risk.
Day: 17 January 2019
Profit & Loss understands that Wai-Kwong Seck, CEO of State Street in the Asia Pacific region (APAC) and member of the bank’s Management Committee, is leaving after an eight year career. According to an internal memo seen by Profit & Loss Seck will be replaced by Ian Martin, currently EVP Asia Pacific at the bank and formerly head of Global Markets for the bank in the region.
In the memo, Ron O’Hanley president and CEO of State Street thanks Seck for his time at State Street and says, “Wai-Kwong and I have been speaking for some time about his desire to be back in his hometown, Singapore, and to do something different
GMEX Technologies (GMEX) has added two new products, ForumCustody and ForumWallet, to its Fusion product suite, thus providing digital custodian and vault capabilities.
The firms says Fusion delivers digitally enabled hybrid trading and post trade solutions for exchanges, clearing-houses and central securities depositories (CSDs) taking advantage of the inherent positive characteristics of both centralised and distributed ledger technology.
GMEX says that institutional investors are increasingly investing in digital assets and require custodians who are able to deliver exchange custody, self-custody or third-party management of their digital asset accounts.
BitGo, a provider of cryptocurrency financial services, has partnered with Genesis Global Trading, an OTC digital currency trading firm, to provide clients with the ability to trade digital assets directly from BitGo custody.Through this partnership, client firms will be able to maintain assets in custody with BitGo Trust Company, a qualified custodian purpose-built for digital assets, while being able to get online, real-time pricing for buy and sell orders.Clients firms will also be able to execute transactions from cold storage without having to manage keys and can access Genesis’ liquidity through a network of trading partners with same day settlement directly through a BitGo Trust account.
Currency trading was one of the few bright spots for CTA performance last year, according to new data from BarclayHedge, now a division of Backstop Solutions.While the Barclay CTA Index was down 2.85% for 2018, the Currency Traders Index was up 5.1% for the year, and the Discretionary Traders Index gained 2.01%.These, however, were the only two indices to post positive returns for the year.
Indices posting losses on the year were led by the Cryptocurrency Traders Index, which was down 63.24% through December. The MPI Barclay Elite Systematic Traders Index was down 5.12% for the year, the Diversified Traders Index declined 4.71%, the Systematic Traders Index dropped 4.16%, the Fin./Met. Traders Index was down 3.20%, and the Agricultural Traders Index was down 0.27%.