LCH has received approval for an extension to its clearing licence from the Japanese Financial Services Agency (FSA). The licence extension was granted on 31 October 2018 and enables LCH’s ForexClear service to clear NDFs on behalf of banks and clients based in Japan.
This latest approval comes in addition to LCH’s existing licence to clear non-Yen OTC interest rate derivatives in Japan, which was granted by the FSA in 2016. Prior to LCH obtaining this latest licence, Japanese customers could only access ForexClear through international subsidiaries.
Refinitiv has signed an agreement with Nordic investment management firm E. Öhman J: or Fonder (Öhman) to deliver an end-to-end workflow solution for its investment management business.
The firm says the agreement will cover the entire pre- to post-trade workflow, and allows Öhman to leverage the full depth of Refinitiv desktop, trading, data, and analytical solutions. In a related move, Öhman is also partnering with the OMS/PMS platform from AlphaDesk, a Software-as-a-Service (SaaS) provider of STP software for the buy-side.
Hedge Funds gave up 3.06% in October according to the Barclay Hedge Fund Index compiled by BarclayHedge, versus a 6.84% decrease in the S&P 500 Total Return Index. Year to date, the Barclay Hedge Fund Index is down 1.90%, while the S&P has gained 3.01%.
Overall, 16 of Barclay’s 17 hedge fund indices had losses in October, while only one index had a gain.
The Barclay Fund of Funds Index gave up 2.69% in October, and has moved into negative territory with a 2.34% loss for the year.
OTCXN say has launched its OTC Block Trading venue for crypto trading – what it says will be the first of several trading venues that will be launched for institutional-only digital asset trading.
After a period of successful testing, the venue is now open to all clients with accounts at custodians on the OTCXN network, including Kingdom Trust and Prime Trust, both of whom are regulated US entities that offer custody services for fiat and cryptocurrencies. Trading on the venue includes fiat-for-crypto, crypto-for-crypto and fiat-for-fiat, the firm says.
Completing a very mixed month-on-month picture for FX trading venues, Deutsche Borse’s 360T reports average daily volume (ADV) of EUR 74.7 billion in October, a fraction below last month’s EUR 75.7 billion.
Previously EBS, FastMatchFX, FXSpotStream, CboeFX and Integral had reported an increase from September, while CME Group and Refinitiv were slightly down.
Since July 2018, 360T’s data has included ADV from GTX, the platform it bought earlier this year, taking GTX’ October 2017 volume into account and reflecting it in euros indicates that the combined year-on-year turnover is up a fraction from EUR 74.4 billion last year.
Advanced Markets has signed Standard Chartered Bank as a foreign exchange prime broker. The addition will further extend the range of clients that can use prime brokerage to trade via Advanced Markets’ Direct Market Access (DMA) liquidity infrastructure.
Standard Chartered will provide prime brokerage services to the newly launched FCA-registered Advanced Markets (UK) Limited operation based in London as well as the company’s ASIC-registered operation in Australia. The companies operate as independent entities and will have discrete prime brokerage accounts at the bank.
The US Commodity Futures Trading Commission (CFTC) has fined a former Deutsche Bank inflation swaps trader for attempting to cover up losses. The Commission has also closed its related investigation into the bank, citing its self-reporting of the incident and its cooperation.
CFTC says it has filed and settled charges against Jacob Bourne, a former managing director at Deutsche for fraudulently mismarking swap valuations to conceal trading losses of $16 million. The CFTC Order requires Bourne to pay a $350,000 civil penalty and permanently bans him from trading on exchange and seeking registration with the CFTC, among other prohibitions.
Just two weeks after the three members of the notorious Bloomberg chatroom The Cartel were acquitted in a New York court of manipulation of FX markets, a group of banks are facing yet another lawsuit from a class action of investors over their FX market activities.
The action has been brought by a group of major investors who explicitly opted out of the class action settlement last year that saw 14 of the 16 banks accused pay over $2.3 billion in damages (a 15th settled later).
Data from CLS shows that the utility handled $1.71 trillion per day in October, slightly down from September’s $1.729 trillion but 5.8% up year-on-year.
CLS settled a daily average of $471 billion in spot FX, up 5.3% month-on-month and 10.3% up year-on-year. This generally reflects the volume reports issued earlier this month by the major FX trading platforms.
There was a decline in FX swap activity, however, with CLS settling $1.161 trillion per day in these products, down 3.2% from September but up 6.5% from October 2017. In outright forwards, settlement activity declined on both a month-on-month basis (by 6%) and year-on-year (by 21.2%) to $78 billion per day.
FICC data analytics company Mosaic Smart Data has launched a new feature for its MSX platform enabling users to instantly generate text reports on their trading activity data using machine learning.
The feature will be available to all MSX users and will allow a trading activity report, which would take a member of staff hours to create, to be generated instantly.
The firm says the new service uses a machine learning technique called natural language generation (NLG), meaning MSX can generate trading activity reports on any set of analytics on the platform including both voice and electronic trade data.