JP Morgan has made its execution services tool for FX algos, called Algo Central, available on the Bloomberg App Portal.Bloomberg Terminal subscribers globally can access the Bloomberg App Portal, so by making Algo Central available on the portal, JP Morgan is offering additional choice of where its clients can access its FX algo execution tools. Algo Central, previously only available via the JP Morgan Markets Execute platform, provides access to the firm’s pre-trade, real-time, and post-trade analytics and allows investors to manage multiple algo strategies simultaneously.Richard James, co-head of macro markets execution at JP Morgan, says:
A new research report from JP Morgan Chase Institute highlights the impact of central bank communication choices on financial market volatility.In the report, Does the Timing of Central Bank Announcements Matter?, the authors analysed data around the Swiss National Bank’s (SNB) decision to remove the EUR/CHF floor in January 2015, and found evidence that the timing of the decision increased subsequent market volatility.This latest research builds on a previous paper released by JP Morgan in June 2018, in which it found evidence that many hedge funds had predicated trading strategies on the belief that the SNB would maintain the EUR/CHF floor at 1.20.
HSBC has now settled more than three million FX transactions and made more than 150,000 payments worth $250 billion using distributed ledger technology (DLT), it announced today.The bank’s DLT solution, called HSBC FX Everywhere, has been used for the past year to orchestrate payments across HSBC’s internal balance sheets.HSBC highlights three key benefits of the solution. The first is that it provides a shared, single version of “the truth of intra-company trades”, from execution through to settlement, which reduces risk of discrepancy and delay. Secondly, it means that confirmation and settlement is automated by matching and netting transactions, which reduces costs and reliance on external settlement networks.
The Federal Reserve Bank of New York has taken the step of publishing a statement detailing how it handles confidential information from foreign exchange and Treasury market participants.
The New York Fed says it is committed to the use and handling of confidential information about participants in financial markets “in a manner that promotes the integrity and efficiency of these markets, and is consistent with goals of the Treasury Market Practices Group (TMPG) Best Practices and the FX Global Code”.
In the Profit & Loss 2018 Digital FX Awards, Barclays was the winner of the “One to Watch in 2018” category and, looking back now at the end of the year, it seems that the bank might be on its way to justifying this decision.
After a couple of years during which there was a clear slowdown in terms of product development within Barclays’ e-FX franchise, the bank appears to be shifting onto the front foot again.
It has made a raft of senior appointments within its FX business this year, with Alex Shterenberg hired as global head of G10 and EM e-FX trading, Jeremy Monnier as a managing director, Fabio Madar as the global head of G10 FX trading and distribution, James Hassett as global head of EM macro trading, and Mauricio Sada-Paz as global head of e-FICC product and distribution.
Citi says it has raised a record $7 million through the 2018 edition of its annual e for Education campaign. Launched in 2013 by Citi's foreign exchange and local markets (FXLM), the initiative has raised $30 million over the past six years in support of several key projects focused on youth education and literacy.
The banks says that more than 300,000 students have been supported by the campaign globally through various initiatives spanning 28 countries worldwide. Citi's FXLM business donates $1 for every $1million of FX that clients traded via a broad range of electronic platforms including its single-dealer platform Citi Velocity and CitiFX Pulse for corporate clients. For the first time this year, the campaign also included local market bonds, in addition to FX.
Just two weeks after the three members of the notorious Bloomberg chatroom The Cartel were acquitted in a New York court of manipulation of FX markets, a group of banks are facing yet another lawsuit from a class action of investors over their FX market activities.
The action has been brought by a group of major investors who explicitly opted out of the class action settlement last year that saw 14 of the 16 banks accused pay over $2.3 billion in damages (a 15th settled later).
The Riksbank has published a new report recommending that the central bank advances a project to develop its own central bank digital currency (CBDC).
The report proposes that the bank begins to design a technical solution for an e-krona in order to test which solutions are practicable and realisable; draws up proposals for legislative amendments needed to clarify the Riksbank's mandate and an e-krona's legal standing; and continues investigating the financial aspects of an e-krona.
Sweden’s central bank says that while it has provided the general public with money for 350 years, as the use of cash is continuing to decline in Sweden, “we need to think in new ways”.
SEB has announced that it is the first Scandinavian bank to offer FX algo trading to its clients through multibank portals Bloomberg and FXall.
Instead of traditional orders where clients call in for their orders to be executed, they will now be able to place their orders themselves through FX Algos, a new portal which will give them the advantage of a transparent, smooth as well as automated trading solution.
The bank says clients will completely own their order execution, and will be able to select their preferred strategy and follow the execution without the need to contact their salesperson at the bank.
The average daily volume (ADV) of FX trades submitted to CLS in August was $1.6 trillion, down 2.1% from the $1.64 trillion in July.
FX Spot ADV was actually slightly up in August, according to the CLS data, rising to $425 billion from $416 billion in July.
FX Swaps ADV was down however, dropping from $1.2 trillion in July to $1.1 trillion in August. Similarly, the ADV for FX forwards went from $107 billion in July, down to $83 billion in August.
Year-on-year (YoY), the total FX ADV recorded by CLS was up 1.5% for August.