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.
The judge’s summary in the unfair dismissal case in which John Banerjee won his claim against Royal Bank of Canada has been published by a London employment tribunal and could see the bank facing a large compensation bill.
Rarely in such cases, Banerjee’s claim for whistleblower status was not dismissed, with Employment Judge James Tayler finding that he was unfairly dismissed principally for “the making of a protected disclosure”.
In the ruling, Judge Tayler refers to an address, in which staff were encouraged to report wrongdoing, and were told “don’t ask don’t tell will not be tolerated”.
State Street Corporation has entered into a definitive agreement to acquire Charles River Systems a provider of investment management front office tools and solutions, for $2.6 billion. The acquisition, which is subject to regulatory approvals and customary closing conditions, is expected to be completed in the fourth quarter of 2018.
State Street says that the integrated systems will enable it to deliver “a global front-to-back platform for asset managers and asset owners that will be unique in the investment servicing industry”.
The Australian Securities and Investments Commission (ASIC) has expressed disappointment at the failure of National Australia Bank to fully implement a reform programme linked to an Enforceable Undertaking (EU) levied by ASIC after deficiencies were found in the bank's wholesale spot FX business.
NAB, along with the other major Australian banks, were fined by ASIC in December 2016 for a series of failures in their FX businesses, including attempts at front running orders, manipulating fixes and inappropriately sharing confidential information.
BNY Mellon has launched its FX options desk, enabling clients to better hedge currency exposure and express their views on the future direction of FX markets.
The bank says that clients now have access to a full-service currency trading desk, offering spot, forwards, non-deliverable forwards as well as options. “This offering complements an existing suite of broader FX services including FX custody, payments and hedging,” it adds.
Options represent the latest step in a broad build out of BNY Mellon’s FX business – the bank has made a series of senior hires over the past two years and in January announced plans to launch an FX prime brokerage service.