Day: March 27, 2019

New Goldman Sachs Algo Offers Basket FX Trading

Goldman Sachs has launched a Basket Algo, which gives clients the ability to take numerous FX trades and then trade them as a basket.“The launch of this algo came from really recognising the pinch points of clients’ workflows and understanding what they’re trying to achieve,” David Wilkins, global head of e-FX sales at Goldman Sachs, tells Profit & Loss. “And I want to make it very clear: this is not any kind of simple trade batch uploader. Indeed, we think this is an entirely new way to trade FX.”The essential thesis behind the algo is that deeper examination of client workflows and trading activity shows that although these firms tend to execute trades on an individual basis, in many cases, they don’t need to be, and it would in fact be cheaper and more efficient for them to instead execute them as a basket.

Former Barclays Trader Guilty of Euribor Manipulation

A jury at a London court has found former Barclays interest rate trader Carlo Palombo, guilty of manipulating the Euribor benchmark interbank lending rate, however it found a fellow former Barclays trader not guilty and is still considering its verdict in a third related case.
The UK’s Serious Fraud Office (SFO) brought the case, alleging that Palombo, Sisse Bohart, who was acquitted, and Colin Bermingham, who is awaiting a verdict, colluded with former Deutsche Bank counterparts Christian Bittar and Phillipe Moryoussef to fix the benchmark rate set. The methodology alleged by the SFO was very familiar to anyone following these cases – the dealers allegedly pressured fellow workers who were charged with submitting the bank’s reference rate, to alter to suit the accused’s books.
Bittar and Moryoussef were convicted last year on the same charges, the latter was given an eight-year jail sentence, which Bittar, who pleaded guilty, was sentenced to five years’ imprisonment.

Six Firms Join DTCC-Euroclear Collateral Initiative

DTCC-Euroclear Global Collateral, the joint venture of Euroclear and The Depository Trust & Clearing Corporation (DTCC), has announced that the Margin Transit Utility (MTU) collateral settlement infrastructure community has added six more dealers to its roster as it moves beyond its pilot production phase.
Goldman Sachs, JP Morgan, Morgan Stanley, Societe Generale, UBS and Wells Fargo have adopted MTU, Global Collateral says, joining over 30 investment management, administrator and custodian firms, including Brandywine Global Investment Management, Fidelity International, Franklin Templeton, Vanguard and Brown Brothers Harriman (BBH) who have adopted the service.

New York Fed Details Attitudes to Crypto

The Federal Reserve Bank of New York’s Liberty Street Economics Unit has published the results of a survey conducted in the May 2018 Survey of Consumer Expectations that sought to understand what motivates people to participate in cryptocurrency markets.
The survey covers a sample of 1,146 people from ages 18 to 96, with broad representation by race and gender and finds 85 percent of respondents had heard of cryptocurrencies – something it says may be a testament to Bitcoin’s name recognition. Around five percent of respondents reported that they currently or previously owned cryptocurrency and an additional 15 percent reported that they were considering buying cryptocurrency.

Baillie Joins R5FX

Alistair Baillie has joined R5FX as head of operations.Based in London, he joins the firm from MarketFactory, where he had been a director since 2016. Prior to that, he spent over a year as the global head of account management at Caplin Systems. Both of these roles were also based in London.Before this, he spent 14 years working in a variety of FX-focused consultancy and project manager roles at financial institutions and advisory organisations in Sydney.

SGX Buys 20% Stake in BidFX

Singapore Exchange (SGX), has acquired a 20% stake in BidFX, including an option for additional shares to gain a controlling interest, for a total cash consideration of $25 million.BidFX was spun off as a division of TradingScreen (TS), a provider of a multi-asset execution and order management systems, in January 2017. It offers a cloud-based, front-end trading platform aimed at helping hedge funds, traditional asset managers and regional banks trade, improve access to liquidity, generate alpha and simplify workflows. Its liquidity aggregation platform supports FX spot, swaps and forwards for G10 and Asian currencies.SGX says that the investment is part of its strategy to build core pillars of growth across multiple asset classes, while BidFX indicates that it plans to utilise the funds to further grow its reach and offering among institutional investors.

Digital Asset Settlement Service Launches

Zero Hash, Seed CX’s digital asset and fiat currency custodian subsidiary, has launched a suite of OTC trade settlement services for digital assets. The new settlement service aims to widen the number of counterparties that market participants can transact with, streamline reconciliation and reporting, and enable frictionless settlement of trades.At launch, Zero Hash supports spot settlement of 19 fiat pairs, in addition to BTC, ETH, LTC and BCH, and will be launching support for repos, forwards, and other product types in the coming months.