Month: January 2019

Looking for Liquidity

As cryptoassets continue to endure a tough bear market, Profit & Loss hosted an event called OnTheBlock to discuss what impact this has had on liquidity conditions.“Right now, we haven’t seen the wave of institutional money that everybody talked about in 2017,” said Martin Garcia, managing director at Genesis Trading. “The narrative then was very much that this is just the retail sector trading these assets and that when the institutional funds come in, it will grow to yet another scale.”To be clear, Garcia still thinks that institutional-sized money and liquidity will enter the crypto space, but that it will do so at a much slower and steadier pace than many were previously predicting.

December FX Volumes Hold Up

Data from CboeFX and Fastmatch indicate that while there was an inevitable drop from November, FX activity in December was historically robust.
CboeFX, formerly HotspotFX, reports average daily volume (ADV) of $33.4 billion in December, 4.3% lower than November, but up 7.4% from December 2017. CboeFX data is based upon 21 trading days, it was open in Asia on December 25, but it was not even the quietest month in the year for the platform, that marker going to July at $33.2 billion.
Meanwhile, Euronext’s FastmatchFX report ADV of $19.1 billion, down 5.9% on the month but again up on the year – by 22.4%. Fastmatch data is based upon 20 trading days.

Investor Confidence Falls In December

State Street Global Exchange has released the results of the State Street Investor Confidence Index (ICI) for December 2018, showing that confidence fell 2.8 points to 79.8. This compares to November’s revised reading of 82.6.
There was a real geographical divergence in the Index, confidence among North American investors waned, with the North American ICI decreasing from 79.2 to 74.1, while the European ICI had an up-tick of 2.1 points to 94.0 and the Asia ICI increased by 8.7 points to 110.6.

Sedergreen Exits BGC

Keith Sedergreen stepped down as managing director of BGC Partners in Australia at the end of 2018 – he had been with the firm for two years having joined from a seven year career at rival inter-dealer broker Tullett Prebon.
Sedergreen, who is actively pursuing other opportunities in the financial markets industry, has been working in the inter-dealer broking space for almost 40 years including stints in London, New York, Johannesburg and Tokyo before settling in Sydney.
He is also the long-standing vice chair of ACI – The Financial Markets Association’s Committee for Professionalism, having been appointed to the position in late 2013 – in addition Sedergreen has been an active advocate for the FX Global Code, including the use of ACI’s ELAC (e-learning, attestation and certification) portal.