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CLS Activity Flat on Year, Down on the Month CLS says it handled settlement instructions to the notional value of $1.68 trillion in November, up very slightly from the $1.677 trillion in November 2017 and down from $1.71 trillion in October. This represents a 1.7% drop on a month-on-month basis and is largely in line with data reported earlier by various FX platforms. Activity in outright forwards was actually up at $97 billion in November, this is a healthy 24.4% increase from October and 9% up year-on-year. Elsewhere, FX swap activity was $1.128 trillion, down 2.8% month-on-month and down 1.8% year-on-year’ and spot volumes were $455 billion, down 3.4% from October, but up 3.6% year-on-year.
Capitolis Joins FXPA The Foreign Exchange Professionals Association (FXPA) has announced the addition of Capitolis as the newest associate level member of the FX trade group. “The changing market landscape and regulations are forcing all of us to think differently around the future structure of the market,” says Gil Mandelzis, CEO and founder of Capitolis. “Capitolis is responding to those changes by finding new ways of connecting capital with the best collaborative solutions to clients all over the world. We are pleased to support the FXPA in their efforts to benefit the industry and the wider public by promoting better standards and practices in accordance with their mission to foster a healthy global FX market.” John Shay, president of FXPA, adds, “We are thrilled to welcome Capitolis to our ranks at FXPA, as Gil and team represent another vibrant, innovative and potentially disruptive solution to the global FX space that our membership community is well positioned to embrace.”
And Another Thing... So already in early December I've had enough and think it's about time the readership did some work, so today is all about you - the readers - making a choice. These awards are called the Irrationals and today...well it's truly irrational! Throughout our conference series this year, our editor-in-chief Julie Ros has made herself busy taking pictures of speakers socks (yes, I know, but what can I say?). Anyway, we thought it would be fun to have you decide who wore the best socks this year - and of course into the bargain we hope to ratchet up the competition levels for next year's conference series.
Refinitiv Adds Thai Baht to WM Service Refinitiv is enhancing the WM/Reuters Thai Baht Spot FX Benchmarks with data sourced from Matching, the firm’s anonymous central limit order book. This has allowed the Thai baht (THB) and Thai baht offshore (TOF) benchmarks to become ‘trade’ currencies using the WM/Reuters Trade Methodology. This change was launched on 1 October 2018 and is available now, the firm says. Previously, the THB/TOF benchmarks were calculated from indicative interbank quoted rates, provided by multiple financial institutions. Following analysis about the feasibility of introducing transactional data from the available FX trading platforms and a public consultation, Refinitiv says it found that the inclusion of data from Matching achieves the necessary requirements regarding sufficiency, quality and data hierarchy to evolve these benchmarks to become trade based.
FSB Issues Clarifications Over Conduct Recommendations The Financial Stability Board (FSB) has also published an overview of responses to its public consultation on its Recommendations for national supervisors: Reporting on the use of compensation tools to address potential misconduct risk (Recommendations), which it launched in May. Overall the board says it received 11 responses from associations representing supervisors, banks, a research foundation, trade associations and a trade union. Generally, it says, most respondents voiced support for efforts to promote good conduct, improve culture and reduce the incidence of misconduct at financial institutions.
Avelacom Opens in Singapore Connectivity and IT infrastructure solutions provider Avelacom has opened a new office in Singapore, managed by Gabriel Bassas, who has been appointed VP sales for APAC. In the past year Avelacom says it has seen double-digit growth in new business volumes coming from the APAC region, driven by clients demanding professional-grade connectivity services between APAC venues and exchanges, and to those in Europe and the USA. It adds, that new business is expected to increase over the next few years, also driven by the growth of APAC crypto exchanges, which are starting to deploy high performance physical IT infrastructure demanded by trading institution clients.
CLS Volumes Down in October 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.
Trade Associations Team Up to Promote FX Code in MEA Region ACI - The Financial Markets Association (ACI FMA), has teamed up with the Interarab Cambist Association (ICA) to promote the FX Global Code amongst financial institutions in the Middle East and Africa. The ICA is a trade association representing professionals working at banks and financial institutions across the Middle East and Africa. Established in 1972, it has members in 15 countries and provides training and workshops relating to asset classes including FX, interest rate products, equities and commodities. As part of the collaboration, the ACI FMA and the ICA recently combined their annual member conferences – the ACI World Congress and ICA Annual Conference – for the first time in Cairo, Egypt.
DeVere Group Launches Crypto Asset Fund DeVere Group has founded the DeVere Digital Asset Funds, something it says is “a suite” of digital currency solutions for experienced investors, in association with Dalma Capital Management, a hedge fund manager in the Dubai International Financial Centre. The firm has revealed that its strategy will be largely arbitrage-based, as it has identified "durable inefficiencies" across trading venues in cryptocurrency markets that it can exploit using algorithmic trading. The launch was announced the day after Bitcoin reached its 10th anniversary.
CME Completes NEX Acquisition CME Group has completed its acquisition of NEX Group. “The combined company will be uniquely positioned to provide efficient access to futures, cash and OTC markets, as well as a wide array of optimisation services and analytical tools,” says CME in a statement issued today. Though the NEX brand will be retired, its primary sub-brands, including BrokerTec, EBS, Traiana and TriOptima, will remain. Other brand names will be folded into CME Group businesses. “CME Group will use its technology, trading expertise and product development resources to further strengthen and scale NEX businesses especially as market participants, like you,