CFTC Commissioner Brian Quintenz has welcomed the formation of an industry trade association for cryptocurrency traders.
The Virtual Commodity Association (VCA) has formed a working group and will hold its inaugural meeting in September. It says the meeting will consider guidelines for membership as well as for best practices and rules-based marketplaces that will promote fairness, transparency, risk management, and liquidity.
It will further discuss best practice guidelines that will address member conflicts of interest, client communications, client disclosures, and record keeping; as well as the staffing needs of the association, including an executive director and compositon of the board of directors.
Redemptions from hedge funds hit a 20-month high in June, according to the Barclay Fund Flow Indicator, as the financial markets weighed the risks of trade disputes and rising interest rates. Industry assets remained at $3.0 trillion, however, the firm says.
Data drawn from more than 5,000 hedge funds in the BarclayHedge database estimated that the hedge fund industry (excluding CTAs) gave up $8.9 billion (-0.3% of assets) in June, reversing inflows of $4.0 billion (0.1% of assets) the month before. June marked the largest outflow since October 2016.
TransFICC, a provider of low-latency connectivity for fixed income and derivatives markets, has secured a strategic investment from Citi, which joins existing shareholders, Illuminate Financial, Main Incubator (which is part of Commerzbank), and The FinLab.
TransFICC aims to resolve the issue of market fragmentation by providing banks and asset managers with a unified, low-latency, robust and scalable API. TransFICC seeks to enable financial institutions to access their required e-trading venues, while streamlining technology requirements and reducing operational costs. In addition to securing this investment, TransFICC has joined Citi's Innovation Lab in London, the first external company to do so.
Profit & Loss understands that Liam Hudson is joining BGC Partners to run its e-FX businesses, including Fenics FX, which was launched last year, MidFX and the electronic FX options offering.
Hudson was last at Bank of America Merrill Lynch in London where he was global head of e-FX for more than eight years.
Hudson joined BAML from Barclays, a firm he joined when it took over the FX business interests of Lehman Brothers. At Lehman, he spent seven years in the e-FX business, including helping develop the FXLive platform as well as the firm’s algo execution capabilities.
Peggy Sullivan has joined technology provider Vela in a newly created chief of staff role.
Based in New York she will report to Vela CEO Jennifer Nayar and the firm says her responsibilities include establishing strong strategic partnerships, advising on market structure challenges and developments, building trusted relationships with key accounts, identifying opportunities to improve service delivery, and collaborating with the wider executive team on strategy and product innovation while also representing Vela across a number of industry groups and trade associations.
A new staff working paper from the Bank of England finds that clients trading interest rate swaps in an uncleared environment are paying around eight basis points for the privilege.
The paper uses data from trade repositories to study trading and pricing patterns in IRS markets and finds the risk premia attached to, and therefore the pricing of, IRS trades varies greatly. The price differentials in risk premia are, “highly significant in statistical and economic terms,” the paper states. This premium substantially decreases when initial margin is posted and with the client’s creditworthiness.
Malaysia’s central bank, Bank Negara, has announced the loosening of foreign exchange controls as it further liberalises the local FX market.
Under the new regulations, local companies will no longer need to convert foreign earnings back into Malaysian ringgit before re-converting to another currency at a later date, instead exporters will be allowed to automatically sweep export proceeds into their trade foreign currency accounts maintained with onshore banks to meet up to six months’ foreign currency obligations, subject to pre-reporting those requirements.
State Street has acquired BestX, a software company that provides independent trade technology and TCA analytics.
The financial terms of the deal, which is expected to close in Q3 subject to closing conditions and regulatory approval, are not being disclosed. Following the deal, BestX will sit within State Street’s Global Link product suite, which is run by Martine Bond, executive vice president and head of trading and clearing for State Street Global Markets.
“Over the past few years, Mifid II, combined with broader economic and political stresses in the market and great competition in the FX market, has meant that our clients are looking for greater transparency and ways to improve their performance and their returns to client and shareholders,” says Bond
Regulatory reporting technology provider Cappitech says it has expanded its integrated reporting solution to CME Group’s Australian Trade Repository (ATR). The firm says the move provides investment firms with automation technology to comply with the Australian Securities and Investment Commission’s (ASIC) Derivative Reporting requirements.
Cappitech’s currently cooperates with CME Group on the latter’s European Trade Repository (ETR) that supports EMIR reporting. The firm says that since 2016, over 500 million trades have been submitted to the ETR through its reporting platform.
ADSS has made two senior institutional sales hires in London.
Chris Andrews has been appointed as co-head of institutional sales for the firm’s UK business. Prior to joining ADSS, Andrews worked at GKFX Financial Services and Saxo Capital Markets, moving through a variety of sales-led roles. He was responsible for the sales trading and account management side of the business, servicing both the bank's retail and institutional clients.
Steven Whittet has also joined the company as co-head of institutional sales for its UK business. He previously held managerial roles in FX sales at Commonwealth Bank of Australia and ICAP Securities. Following this, he joined the Kyte Group as head of FX, before later joining GKFX as global head of institutional sales, where he introduced the set-up of a new prime broker and trading platform for the company.