Bernie Sinniah, global head of e-solutions at Citi, is to retire from the bank. According to an internal memo seen by Profit & Loss, Sinniah – who joined the Citi in Colombo as a spot trader 38 years ago, will step down in the first quarter.
Sinniah moved to Australia in 1986 with Citi and later joined the FX sales team, becoming head of sales for Australia before moving to the UK in 1999 to run the UK and subsequently corporate desk for Europe.
BestX has expanded its suite of best execution analytics with the launch of a new Trend Analysis module.
The firm says the new functionality allows clients to generate bespoke analysis of trends in costs and other performance metrics over time, adding that improving the management information provided by the BestX analytics is a critical component of satisfying best execution obligations by allowing clients to identify how execution performance is changing over time, thereby allowing changes to be made to the process to continually refine and improve performance.
A new working paper from the Bank of England analyses the role of automated trading (AT) in FX markets in a period containing the 15 January 2015 announcement by the Swiss National Bank that it had removed its EUR/CHF floor and finds that while AT “generated uninformed volatility”, human traders did the opposite.
“This ‘Swiss franc event’ represents a natural experiment as one of the largest shocks to the FX market in recent years and probably the most significant ‘black swan’ event in the period in which AT has been a prominent force in FX markets,” the paper states.
The Federal Reserve Board has announced that it is seeking to permanently bar Peter Little the former head of the G10 FX spot desk at Barclays in New York, from employment in the banking industry. The central bank is also seeking to impose a $487,500 fine on Little, who joined HSBC in New York in mid-2013 as head of G10 spot FX trading.
Little, who is believed to be preparing to challenge the Fed’s finding, is alleged to have engaged in unsafe and unsound practices.
Although fintech solutions are likely to change how FX operates throughout the trade lifecycle, expect these changes to be evolutionary rather than revolutionary, explained speakers during a recent Profit & Loss webinar.
The word “disruption” has become synonymous with fintech in recent years, with numerous articles, whitepapers and analyst reports warning that fintech upstarts are looking to upset the applecart in financial services.
Yet speakers on a recent Profit & Loss webinar, FinTech in FX: Getting Beyond the Hype, which was sponsored by IHS Markit, preferred to talk in terms of innovation rather than disruption when discussing the impact of fintech in the FX markets.
UOB has added two FX solutions to its suite of cross-border financial products and services in China.
The bank has rolled out a solution that enables onshore banks in China to trade directly with banks overseas via the R5-SHCH Connect without having to source for counterparties and to negotiate trade prices individually.
The second FX solution is direct trading between the RMB and the Thai baht, with the bank claiming it is among the first market makers able to support direct trading for its clients through the China Foreign Exchange Trade System (CFETS).
Hedge funds have produced more consistent and steadier returns than equities or bonds over both the short term and the long term, according to new research by Preqin, the data provider, and the Alternative Investment Management Association (AIMA), the global representative of alternative investment managers.
The organisations found that hedge funds have out-performed equities and bonds on a risk-adjusted basis over one, three, five and 10-year periods. Risk-adjusted returns, represented by the Sharpe ratio, reflect the volatility of the returns as well as the returns themselves.
Hedge Funds gained 2.11% in January according to the Barclay Hedge Fund Index compiled by BarclayHedge, continuing a strong end to 2017 and extending the Index’ winning streak to 15 months.
The longest consecutive streak of profitable months for the Index was the 18-month period from October 2002 through March of 2004. The current streak has produced a gain of 14.9% for the Index versus 25.7% during the record 18-month streak.
All 17 Barclay hedge fund indices started the year in positive territory.
LMAX Global, the Financial Conduct Authority (FCA) regulated broker for FX and part of the LMAX Exchange Group has announced that its global liquidity has been added to the Kx trading platform, Kx for Flow.
Institutional clients and brokers, using the Kx for Flow trading UI, will now have access to the broker's liquidity, spreads and execution with no ‘last look’ as standard.
Rob Brown, international development executive at LMAX Global comments: “We are very pleased to announce the partnership with Kx. The link will offer more institutional clients an enhanced trading experience - delivered through the combination of Kx for Flow leading technology and direct access to trade through LMAX Global on the central limit order book with streaming firm liquidity from top tier banks and proprietary trading firms.”
It seems that regulators are unlikely to place any significant burdens on new fintech firms emerging in the wholesale financial markets in the near future, given their lack of familiarity with the technologies involved.
Speaking on a recent webinar hosted by Profit & Loss, Justin Slaughter, a partner at Mercury Strategies, explained that, when it comes to fintech, regulators in the US are still very much in “information gathering mode”.
“Much of what regulators are doing right now is simply trying to educate themselves. There is a significant lack of understanding about how fintech is so much broader than, say, just cryptocurrencies or even DLT [distributed ledger technology],” he said.