ISAM (Isam) has set up ISAM Capital Markets – a holding company consisting of IS Prime, IS Prime Hong Kong and IS Risk Analytics (ISRA).
The new group structure has been set up to provide a framework for future growth and further diversification.
Alex Lowe, managing partner at ISAM explains, “As we have evolved we needed a new corporate structure to accommodate our current and future plans. We now have offices in three jurisdictions and are a larger, more diverse organisation. Setting up a capital markets business was the next logical step for us as we continue to accelerate and broaden our offering.
Abu Dhabi-based ADS Securities announces the introduction of bitcoin CFD trading for Middle East and North Africa (MENA) clients using its MT4 platform.
Speaking about the decision to introduce cryptocurrency at this time, Jason Hughes, global head of retail sales, says: “We will be the first brokerage in the MENA region to offer bitcoin trading. We have followed the growth of this very exciting and dynamic new trading asset, but before offering a service we wanted to really understand the market and make sure we have the right systems and protection in place for our clients.
“As with all trading, it is very important to have the financial strength and the IT processes to protect positions. ADS Securities is the right partner for clients looking to trade cryptocurrencies. They understand that our capital reserves, regulation through the UAE Central Bank and the quality of the team provides a different level of support to them,” he adds.
A note from US legal firm Crow & Cushing suggests that as well as the law on spoofing in financial markets being tougher than it was before, actually proving the offence is now potentially easier. The note compares the recently-upheld conviction of Michael Coscia for spoofing certain futures markets with the activities of what was known as The Radio Pool, a group of investors who artificially inflated the price of Radio Corporation of America (RCA) in the 1920s before selling out.
CLS Group has thrown its hat in the ring to host a public register listing those firms that have signed the Statement of Commitment to the FX Global Code. Profit & Loss understands other regional or national initiatives are also underway, however CLS is believed to be leading the push for a global register, in spite of it apparently limiting the initiative to CLS members. The commitment process was initially expected to take six-to-12 months, however firms are already signing up.
Malaysia’s central bank – Bank Negara Malaysia (Negara) – has issued a statement warning that offshore trading of the ringgit contravenes Malaysian laws.
The statement was issued to the recent introduction of ringgit futures at the Singapore Exchange (SGX) and the Intercontinental Exchange (ICE), with Negara claiming that these products are “inconsistent with Malaysia’s foreign exchange administration (FEA) policy and rules”.
Negara adds: “The Malaysian ringgit is a non-internationalised currency and thus, offshore trading of ringgit, in any form whether as a non-deliverable forward traded out of offshore financial centres or as a futures, options and other derivative contracts on exchanges outside of Malaysia, is against Malaysia’s policy.”
In the statement, BNM reminds market participants that failure to comply with the FEA rules is an offence under the Financial Services Act 2013 and Islamic Financial Services Act 2013.
ACI – The Financial Markets Association says it is extending the search window for its next managing director.
Profit & Loss understands that the association has already received several applications for the post from within its membership, but in light of the Northern Hemisphere summer and to ensure applications from the broadest possible pool, ACI has extended its search period to August 21.
The association says it is seeking “an experienced professional to manage and deliver the strategic objectives of the global association”.
Profit & Loss understands that several initiatives are underway to develop regional registers that may feed into a global repository that lists those FX market participants who have signed the Statement of Commitment to the FX Global Code and further that at least three banks have already signed the Statement of Commitment.
Against this background, the recently-formed Global Foreign Exchange Committee (GFXC) has published what it terms non-binding initial guidance on the establishment of these registers and how they may feed into a Global repository.
Few can be surprised that such an increasingly emotive issue such as last look has led to a lawsuit. As someone who has disliked the practice for more than a decade and written about the risks associated with the regular rejecting of trades for more than seven years this class action lawsuit is not surprising – but I cannot help avoid the feeling that this is both someone trying it on, while at the same time it is the worst case scenario for the defendants.
Bloomberg is reporting growing penetration of the Indian market, with corporations such as Gas Authority of India (GAIL), Rural Electrification Corporation (REC) and ONGC Videsh (OVL) adopting its e-FX platform, FXGO.
GAIL is the largest state-owned natural gas processing and distribution company in India, REC is a leading public infrastructure finance company in India's power sector and OVL is India's second largest oil company.
The corporate treasury desks at GAIL, REC and OVL are using Bloomberg FXGO to analyse trade ideas, request quotes, execute, and perform post trade analysis, all on a single electronic platform.
INTL FCStone has announced that the Global Payments Division (GPD) of its London-based subsidiary has introduced Automated Clearing House (ACH) connectivity, enhancing the company’s high-volume, low-value cross-border payments offering.
Low-value payments are the single largest driver of growth in GPD’s payments volumes, which are currently 60% up year-on-year, the firm says. In order to support this increasing demand, the firm launched an initiative to securely access a greater number of global ACH low-value clearing systems.
“In the past, how a payment was sent and what the cost of sending it was didn’t matter as much because the absolute value of that payment was usually relatively high. But today, as payments become smaller and smaller, it becomes more and more important to build networks that are cost effective,” Carsten Hils, the global head of GPD, tells Profit & Loss.