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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,
Advanced Markets Launches in the UK Advanced Markets, a provider of FX liquidity and prime-of-prime services, has launched in the UK as an FCA regulated company. The new entity, Advanced Markets (UK), includes new trading servers in Equinix’s LD4 and LD5 data centres, as well as a new London office headed by Nina Baksh. “The launch of our comprehensive London operation is an important step in the company’s global strategy,” says Anthony Brocco, founder and CEO. “It enables us to better serve our institutional broker and fund manager clients in the UK and Europe, by providing a regional matching engine, which is fully cross-connected with our bank and non-bank liquidity providers.”
Survey Finds Increasing Support for CBDCs A new survey from the Official Monetary and Financial Institutions Forum (OMFIF) and IBM finds increasing support for central bank issued digital currencies (CBDC). OMFIF describes itself as “an independent think tank for central banking, economic policy and public investment” and says the new report describes potential use cases for central banks to support central bank digital currencies. A CBDC is a digital form of fiat money, which is a currency established as money by government regulation. It differs from digital currencies, which are not issued by the state and lack the regulations of a government.
Edgewater: Making a Play in LatAm Edgewater Markets recently hosted an event in Lima, Peru, to celebrate the continued roll out of its new LatamFX.Pro platform. Galen Stops attended the event and sat down with the firm’s senior management to discuss why they’re making such a strong push in Latin America. n a nutshell, the central thesis behind Edgewater Market’s Latam strategy is that their technology can be used to convert the NDF market into an NDF trading platform and thereby enabling local market participants to aggregate, consume and distribute FX rates more efficiently.
CLS Volumes Up In September CLS has reinforced the impression that FX markets were busier in September by reporting a 7.7% increase in volumes handled from August. Earlier this month a series of FX trading platform providers also mostly reported a month-on-month increase. CLS says it handled $1.729 trillion per day in September, a 1.2% decline on a year-on-year basis. Of this, $1.199 trillion was FX swap volume, up 9.3% month-on-month and 5.4% up year-on-year. In contrast, FX outright volumes were flat month-on-month at $83 billion, and down 18.6% from September 2017, Spot FX volumes were a mixed bag, comparatively, up 5.1% from August at $447 billion per day, but down 12.3% year-on-year.
Two Former Deutsche Traders Guilty in Libor Trial Two former Deutsche Bank interest rate traders have been found guilty by a New York jury of a scheme to manipulate the London Interbank Offered Rate (Libor) benchmark fix. The two men, New York-based Matthew Connolly and London-based Gavin Campbell Black remain on bail pending post-trial motions likely to be complete in the first quarter of 2019. Connolly was found guilty on three of six counts, while Black was found guilty of two counts. Lawyers for both men have publicly stated their intention to appeal.
CFTC, DoJ Charges Former Tower Traders Over Spoofing The US Commodity Futures Trading Commission (CFTC) has issued an Order filing and settling charges against Kamaldeep Gandhi, in which Gandhi admits to engaging in manipulative and deceptive schemes, along with other individuals, which involved thousands of acts of spoofing with respect to a variety of futures products traded on the Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange, and the Commodity Exchange (Comex). At the same time the US Department of Justice (DoJ) charged Gandhi and two alleged co-conspiritors, Bruce Mao and Krishna Mohan, with spoofing offenses and says Gandhi and Mohan have admitted to the charges.