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.
A New York judge has thrown out a class action lawsuit led by Axiom Investment Advisors against Deutsche Bank, which claimed the bank abused the practice of last look in its foreign exchange trading.
Judge Lorna Schofield threw out two class actions, arguing that neither satisfied the requirements for a successful class action in that different clients had different experiences and there was no common theme of “unjust enrichment”. She also leans repeatedly on the New York Department of Financial Services report into Deutsche, which at one point notes that the bank “as a general matter” appropriately calibrated its last look settings.
State Street has announced the appointments of Jörg Ambrosius and Mike Fontaine as co-heads of global services, EMEA. This follows the promotion of Liz Nolan to chief executive officer, EMEA and the upcoming departure of Susan Dargan, who steps down to pursue personal interests.
Ambrosius, who most recently held the title of head of sector solutions, EMEA, will remain based in Munich; whilst Fontaine, who was previously held the title executive vice president, US investor services, has relocated from Boston to Dublin. Both will report to Nolan, as well as to Andrew Erickson, head of the global services business worldwide.
State Street has acquired BestX, a software company that provides independent trade technology and TCA analytics.
The financial terms of the deal, which is expected to close in Q3 subject to closing conditions and regulatory approval, are not being disclosed. Following the deal, BestX will sit within State Street’s Global Link product suite, which is run by Martine Bond, executive vice president and head of trading and clearing for State Street Global Markets.
“Over the past few years, Mifid II, combined with broader economic and political stresses in the market and great competition in the FX market, has meant that our clients are looking for greater transparency and ways to improve their performance and their returns to client and shareholders,” says Bond
Credit Suisse has revealed in its Q2 financial report that the European Commission (EC) is alleging that the bank engaged in anti-competitive practices relating to its FX business.
“On July 26, 2018, Credit Suisse Group AG and certain affiliates received a Statement of Objections from the European Commission (Commission), alleging that Credit Suisse engaged in anti-competitive practices in connection with its foreign exchange trading business. The Statement of Objections sets out the Commission’s preliminary views and does not prejudge the final outcome of its investigation,” the report states.
A spokesperson for Credit Suisse declines to comment on the news.