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And Finally... It is widely believed that it is inevitable that technology will assume more control of the decision making in markets, but I for one, hope it does not, for I don't believe the outcome would be particularly good. At the moment technology dominates the execution of strategies, but the decision making is still a more balanced process with the human very much involved – which to me is a good, because what we need is a good blend of human and machine if we are to continue to see risk takers.
TPI Partners with Yonhap for Data Distribution Tullett Prebon Information (TPI), which provides independent real-time price information from the global OTC financial and commodity markets, is expanding its partnership with Yonhap Infomax, a South Korean real-time news and financial data service. The new partnership will enable TPI to distribute and license its OTC data via Yonhap’s data feed service directly to local financial institutions. Partners for over a decade, TPI and Yonhap are now providing domestic banks and securities firms with a new option to access TPI’s OTC data for swaps, fixed income and FX instruments. Yonhap will now deliver TPI data to users through its feed services, plugging directly into third-party and customer applications.
Second New CFTC Commissioner Sworn In Dawn Stump has been sworn in to serve as a Commissioner of the Commodity Futures Trading Commission (CFTC). Former CFTC Commissioner Jill Sommers administered the oath of office to Stump at the Fearless Girl Statue in New York City. Stump is the second new commissioner to be sworn in after Dan Berkowitz’ ceremony last week. “I am honoured to re-enter public service as a Commissioner and proud to join the CFTC in advancing a mission I have long supported,” says Stump.
ACI FMA Amicus Brief Calls for “Illogical” Government Argument to Be Overturned in Johnson Case ACI – The Financial Markets Association (ACI FMA) has filed an Amicus Brief on behalf of former HSBC FX trading head Mark Johnson, who is appealing his conviction and sentencing earlier this year for several wire fraud offences. In the Amicus ACI says that if the US government’s “Illogical” position is allowed to stand, and the conviction is not overturned, bank dealers are unlikely to operate in the face of potential criminal sanctions simply for transparently and fairly hedging the uncompensated risk of “colossal loss” to their shareholders.
Edgewater Launches LatAm Platform in Europe Edgewater Markets has made its dedicated Latin American currency and NDF trading platform, LatamFX.Pro, available to European clients. The aim of the platform is to service the needs of local banks, pension funds, hedge funds, brokers and end users for the hedging and execution of Latin American FX and NDFs. Initially launched in the LatAm region, Edgewater says that it is making the platform available to European clients due to strong initial demand from its customers in the region, who have historically found it challenging to access LatAm liquidity that is untouched by HFT and algo trading systems.
Citi Launches 6th “e for Education” Programme Citi has launched the 6th edition of its annual e for Education campaign, a global corporate social responsibility initiative that has raised over $22.5 million for education-focused non-profits since 2013. During the nine-week campaign, Citi's foreign exchange and local markets business will donate $1 for every $1 million traded with Citi via a range of electronic platforms including the bank’s proprietary platforms Citi Velocity for institutional clients and CitiFX Pulse for corporate clients. The bank also says that for the first time, this year’s campaign will include local market bonds, in addition to FX.
NEX Markets Report Sees Improved FX Market Behaviour NEX Markets has released a new report, which it says demonstrates greater transparency and improved behaviour in the FX market since the FX Global Code came into effect in May 2017. The report, entitled The FX Global Code: Changing Transparency and Behaviour, uses data from NEX Quant Analytics and highlights how the firm has witnessed a significant reduction in hold times, reject rates and a tightening of spreads on the bilateral EBS Direct platform. “This suggests an industry-wide move for greater transparency and improved market behaviour,” the firm says.
Thomson Reuters Adds Japanese Yen, Thai Baht Crosses Thomson Reuters (TR) has launched real-time electronic trading of spot Japanese yen and Thai baht cross currency pairs on its Matching platform. Cross-currency trading in JPY/THB and THB/JPY will be provided on TR’s electronic central limit order book platform to clients in Japan, Thailand and globally. Recently, Japan’s Ministry of Finance (MOF) and Bank of Thailand (BOT) reached a mutual agreement on initiatives to promote the use of local currencies for trade and investment settlement, which includes, among others, promotion of the direct exchange rate quotation and interbank trading between the Japanese yen and the Thai baht.
Bank Negara Malaysia Loosens Foreign Exchange Controls 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.
CLS Data Confirms ADV Trends CLS Group FX volumes have confirmed the trend established by those major platforms to report data by revealing that it handled $1.64 trillion per day in July 2018, down 13.7% from the previous month but up 2.6% year-on-year. Forwards volumes at $107 billion per day were actually up on June by just over 10%, however there were larger falls in spot ($416 billion from $498 billion) and swaps ($1.15 trillion from $1.3 trillion). Year-on-year, forwards and swaps volumes were up at CLS. However again spot volume was lower.