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Liquidity in FX: Not All Prices are Created Equal When clients are looking at prices in an aggregator they could see a bunch of quotes that appear to be identical to one another. But as Roel Oomen, managing director, electronic FX spot trading at Deutsche Bank, explains, this does not mean that the transactions costs for dealing on each of those quotes is exactly the same. This is because rejection rates can vary, the liquidity that’s shown at these quotes can vary, and the risk management style of the liquidity providers (LPs) in the aggregator might vary, with some externalising the risk and other internalising it. But how to tell the two apart?
In the FICC of It In this week's podcast Colin Lambert and Galen Stops focus in on what seems to be a growing debate about the value and indeed future of the FX Global Code following the acquittal of the three members of the Cartel. Discussing the implications of the jury's decision and the reaction from the FX industry, regular listeners will not be surprised to hear that our two podcasters manage to disagree over a few aspects of both the case and the debate.
In the FICC of It In this week’s podcast, Galen Stops lights the blue touchpaper and steps back to watch the fireworks by asking Colin Lambert about not only the Benchmark Fix, more specifically the research paper published this week, but last look as well following the news that a regional regulator is investigating the practice. Just to add to the mix, he also gets him going on another Lambert favourite, tracking error. They also discuss the FX Global Code and fintechs and ask, ‘should they be adhering and signing up to the Code?’ and Lambert shares some reader feedback on this week’s opinion piece on FX options brokerage.
In the FICC of It In this week’s podcast Galen Stops shares some feedback about a previous week’s discussion on electronification of NDFs and Colin Lambert reports from an equity-focussed market structure conference, some of the statements from which, surprised him and lead to another one of his “theories” about the relationship between FX and equities. Our two podcasters also dive into the big announcement from the crypto world that Fidelity are stepping into this space in a big way and ask the question, who comes next? They close out with a brief example of the challenge facing Refinitiv as it rebrands, before asking the question first put in yesterday’s And Another Thing…Was FXMarketSpace really, as Stops puts it, “the right idea at the wrong time?”
In the FICC of It In this week’s podcast Galen Stops reports from Stockholm on his observations from last week’s Profit & Loss conference in that city, and his interruption by abseiling window cleaners gives Colin Lambert the opportunity to tell his favourite window cleaning story. On more pertinent topics, they discuss the obvious discord between Sweden’s central bank and local economists and Lambert gives his thoughts on the start of the Cartel trial – stressing the differences between this and the impending appeal of Mark Johnson. Technology is also in our podcasters cross hairs as they look at blunt instruments to manage market risk and Lambert asks the philosophical questions, ‘Is the market always lagging technology and is this a good thing?’ and ‘at what stage do market participants revert to making the tech work for them rather than have the tech dictate their modus operandi?’ There’s also a quick skip through the latest from the crypto world and Lambert also feels obliged to call out one company for its chaotic start to live under a new moniker, and another for good “spin” around its volume numbers.
In the FICC of It This week’s podcast was delayed because Galen Stops had difficulty connecting from Peru…that or the fact that our podcasters were intimidated by the quality of their guests the previous week and knew they couldn't match the standard! They overcome the fear factor, however and go on to discuss the local market in Peru as well as the broader issue of NDF market development, during which Colin Lambert thinks he sees positive signs coming out of Asia regarding electronification of these markets.
In the FICC of It The podcast is still on the road this week as Colin Lambert and Galen Stops check in for the second time this week from Chicago – and they are joined by another guest podcaster, Caplin CEO John Ashworth. Listen in as he “owns” them with a terrific name drop as they discuss crypto regulation, potential limits to the market’s growth and the shift from retail to institutional. The podcast also discusses a real life use case of the FX Global Code and looks (and fails) for other uses, before moving onto data and a good slap down of the hype around AI. Book-ending the podcast are a plea by Lambert for further evidence to be considered in his debate with Stops over trend following (hint: It involves the Naim and eFX video on YouTube) – and each podcaster revealing their best “swag” from the exhibition hall at Forex Network Chicago.
In the FICC of it This is a very special In the FICC of it podcast as Colin Lambert and Galen Stops bring in some guest commentators at the Forex Network Chicago conference: they're joined by Jim Cochrane, head of North America sales at BestX, Peter-john Byrnes, vice president, Networks and Infrastructure at Elysium Technology Group and Al Crane, director of sales at MarketFactory. The subjects of data, connectivity, liquidity are covered and one of the guest commentators makes a serious error of judgement by asking Lambert for his thoughts on last look!
In the FICC of it It's a bumper edition of In the FICC of it this week as Colin Lambert and Galen Stops prepare to head off to Forex Network Chicago 2018, with both giving previews of the main issues that they plan to tackle on the panel sessions that they are moderating. The pair also discuss a report by the New York state Attorney General, which highlighted some major concerns about some of the crypto trading venues operating today. But the most interesting aspect of this story is the response of one exchange that decided to hit back at the AG in rather spectacular fashion - Lambert and Stops highlight some of the shots fired on (where else?) Twitter.
In the FICC of It This week’s podcast roars through a huge range of subjects and features Colin Lambert lamenting the demise of “crazy” hedge funds and Galen Stops questioning how much value there really is in the swathe of market data products coming to the market. Our two podcasters also take a look at TCA and ask, “does it really add value?” They delve deeper into the real challenges facing corporate treasuries (hint: it’s not execution) and the value, or otherwise, of them using currency overlay programmes; roll through the FX Global Code and into the end of the class action against Deutsche Bank over last look; and end up with exciting news for listeners attending Forex Network Chicago.