Month: January 2019

Spotex Hires Miesner

Spotex, a developer of technology systems for the FX markets and ECN operator, has hired John Miesner as executive managing director, global head of sales and distribution. “We are fortunate to have John join us at this transformative point in our evolution,” says Ritesh Agrawal, CEO of Spotex. “John’s vast knowledge of the institutional foreign exchange market and its key participants will be a tremendous asset as he leads the company forward.”Spotex was launched in 2014 by Agrawal, who previously held senior IT positions at Hotspot FX (now Cboe FX), GFI and PwC, and COO Chris Mitchell, who held similar positions in financial technology.

MarketFactory Secures Investment

MarketFactory has secured a strategic investment from Accel-KKR, a technology-focused investment firm based in Silicon Valley with over $5 billion in capital commitment. In a release issued today, MarketFactory says the funding will accelerate its expansion into new markets and services for currency traders globally.“MarketFactory’s platform provides detailed data about the currency market that helps traders to innovate. We are very excited to find the right partner in Accel-KKR who understands the market structure importance of our business and growth trajectory,” says Darren Jer, CEO and co-founder of MarketFactory.

Crypto Exchange Goes Live on OTCXN

OTCXN, a blockchain-powered capital markets infrastructure company, has announced that Independent Reserve, a regulated cryptocurrency exchange that operates in Australia and New Zealand, has joined the OTCXN network. “We are excited to have Independent Reserve as the first exchange to go live on our network. Their forward-thinking management team was quick to see the benefits of joining OTCXN, where Independent Reserve’s order book is tradable by any institutional client on OTCXN’s global network without holding assets at the exchange. OTCXN brings exchanges the deepest institutional liquidity, increasing trading volume and ultimately increasing revenues and improving client execution,” said Rosario Ingargiola, CEO and founder of OTCXN.

TriOptima Compression Hit Record Levels in 2018

TriOptima, a provider of multilateral compression services for OTC markets, set a new record for its triReduce portfolio compression service in 2018, having compressed $250 trillion gross notional value of trades at LCH SwapClear.The firm says this record, which represents an annual increase of 31% in terms of notional value, was driven by a combination of increased participation of both dealers and their clients, increased trade submission to triReduce cycles and a wider adoption of the Trade Revision methodology, which improves compression efficiency by up to 50% by allowing a wider range of trade economics to be changed.“We are proud that another record compression year continues to help the industry achieve important capital and operational cost reductions,” says Peter Weibel, co-CEO at TriOptima.

SGX Sees Strong Growth in FX Futures

Trading on SGX’s FX Futures more than doubled to $914 billion in 2018 as the exchange saw a record monthly volume of $96 billion traded in December.In aggregate, 1.76 million FX futures contracts were traded on SGX in December, up 87% from the same month in 2017. Meanwhile, the notional volume of $96 billion traded on the platform was a 122% year-on-year increase.“The robust annual growth is strong evidence of the role SGX plays as a key risk management venue for market participants as they manage their Asian currency risk exposure,” says the exchange group in its monthly newsletter.

HSBC Settles $250bn of FX Using Distributed Ledger Technology

HSBC has now settled more than three million FX transactions and made more than 150,000 payments worth $250 billion using distributed ledger technology (DLT), it announced today.The bank’s DLT solution, called HSBC FX Everywhere, has been used for the past year to orchestrate payments across HSBC’s internal balance sheets.HSBC highlights three key benefits of the solution. The first is that it provides a shared, single version of “the truth of intra-company trades”, from execution through to settlement, which reduces risk of discrepancy and delay. Secondly, it means that confirmation and settlement is automated by matching and netting transactions, which reduces costs and reliance on external settlement networks.

Galy Joins Nordea Asset Management

Sebastien Galy has joined Nordea Asset Management as a senior macro strategist.Now based in Luxembourg, Galy joins from Deutsche Bank, where he was a senior macro and currency strategist in the firm’s New York office. Prior to joining Deutsche Bank in 2015, Galy spent over four years as a senior currency strategist at Societe Generale and over two years in the same role at BNP Paribas. Both of these roles were based in New York.
Before that, Galy had spells as a senior currency strategist at Dresdner Kleinwort in London between 2007-2008 and at UBS in Zurich between 2006-2007.

And Another Thing…

There is nothing like a flash event to get people excited and for news outlets to dust off and update the old “blame the algos” stories for publication. Equally, there are members of our industry of a (ahem) certain generation who are quick to jump on the bandwagon with the rejoinder “it wasn’t like that before the machines”.
As a member of that “certain” generation I can assure readers that it is utter nonsense and that last week’s flash event was triggered by a human.

OTCXN Continues Growing its Network

OTCXN, a blockchain-powered capital markets infrastructure company today announced that Fractal Wealth, a proprietary algorithmic trading firm that trades digital assets, has joined its network.This news comes just days after OTCXN revealed that OSL, an OTC digital asset brokerage company in Asia-Pacific, has also joined its network.“We are pleased to have Fractal Wealth join the OTCXN network. They represent a unique source of liquidity for our rapidly growing and diverse institutional client base. As an algorithmic trading firm, they will benefit from the ability to trade programmatically on OTCXN’s ECN, LiquiMatch. OTCXN’s aggregated liquidity spans both native, resting dark and lit orders, executable quote streams from major liquidity providers, plus institutional, as well as retail exchanges that have joined the network.

SGX Completes First USD/CNH FlexC FX Futures Trade

Singapore Exchange (SGX) has successfully completed the first USD/CNH Flexible FX futures trade.The transaction involved Bank of China (Singapore) and ICBC (Singapore) executing two CNH FlexC FX futurised swap trades on SGX. A total notional value of $8 million changed hands.“The transaction marks a major step forward in bringing together the listed and OTC markets in FX. With global regulatory initiatives such as Basel III and MIFID II coming into play, financial institutions are facing an increasing burden of capital requirements that include Leverage Ratio, Liquidity Coverage Ratio and Counterparty Credit Risk charges, as well as Uncleared Margin Rules (UMR) for OTC derivatives.