Day: 17 February 2019

In the FICC of It

Just two subjects fill our podcast this week as Colin Lambert and Galen Stops share (contrarian) views over the benefit (or otherwise) of closer links between retail and institutional FX markets.
The cynicism Lambert brings to that subject also permeates the second main subject – the release last week of two reports from Global FX Committee Working Groups on disclosures and “cover and deal” operators using last look. Our podcasters also take a look at the GFXC’s annual survey of opinions on the FX Global Code and while he admires what he terms “the optimism of youth” as expressed by Stops, Lambert is again wearing the cynical expression as they discuss some potentially concerning findings in the survey.
Not happy there, Lambert also tries to hit back at what he reports was “ridicule” aimed at him after last week’s podcast discussed his NOK/MXN prediction for 2019 by deflecting the issue onto one of Stops’ predictions – or rather one of what Lambert believes is a “non-prediction”. Will FX prime brokerage consolidation reverse (slightly) and will asset manager clients remain elusive? Find out by listening in.

And Finally..

To channel my inner Shakespeare, “to re-paper or not re-paper – that is the question”. I could continue with something like, “whether ‘tis nobler in the mind to stand by the price and wear the loss, or run crying to the authorities and try to get it cancelled” but that kind of loses poetic effect. Anyway, what I want to say is why do markets let people get away with rank stupidity and lack of operational discipline by letting them re-paper trades?