Thomson Reuters is planning to move its FX Multilateral Trading Facility (MTF) from London to Dublin as a result of Brexit.
In a release issued today the firm says that it has commenced the process of applying to the Central Bank of Ireland (CBI) for authorisation to operate its FX UK’s planned departure from the European Union on 29 March 2019.
The Thomson Reuters MTF – which includes forwards matching and FXall RFQ and dealing – are currently operated by Reuters Transaction Services Limited (RTSL), a Thomson Reuters company incorporated in England and Wales, which is authorised and regulated by the Financial Conduct Authority (FCA).
As LMAX Exchange Group (LMAX) reports strong 2017 financial results, its CEO, David Mercer, insists that the firm is well positioned to compete with larger FX platforms that have been acquired by exchange groups.
LMAX’s EBITDA was £8.8m, up 58% year-on-year, and it has reported a gross profit of £25.4m, up 22% year-on-year.
This is the second consecutive year that the platform has posted significant financial growth – looked at over a two-year period, its annual EBITDA growth is 151%, will on an annual basis gross profits are up 28% and notional volumes are up 20%.
The total average daily volume (ADV) of FX trading across Thomson Reuters’ platforms in April 2018 totaled $441 billion, down 4.3% from the $461 billion ADV it recorded the previous month.
However, this figure still represents an 18% increase year-on-year from the $347 billion of ADV it recorded in April 2017.
These totals reflects trading volumes on Thomson Reuters Matching and FXall in all transaction types, including spot, forwards, swaps, options and NDFs.
The ADV for spot trading on these platforms was $95bn last month, down 9.5% compared to March 2018, but up 9.1% compared to the same month the previous year.
Private equity group CVC Capital Partners’ Asia Fund IV has had an offer accepted to acquire all of the outstanding equity of online retail trading technology and analytics provider Oanda Global Corporation.
Terms of the deal were not disclosed and it is subject to regulatory approval. Under the new ownership, Oanda will continue to be led by CEO, Vatsa Narasimha.
Siddharth Patel, senior managing director at CVC, says, “We look forward to working closely with Vatsa and his team as we help support Oanda, especially in Asia, in making strategic acquisitions and in investing to further broaden its product set.”
Integral has begun reporting the monthly average daily volume (ADV) of FX products traded across its platforms, revealing that in April this ADV was $35 billion.
The firm says that this figure is consistent with the ADV that it recorded throughout the first quarter of 2018, which were between $34.5 billion and $38.5 billion.
Speaking to Profit & Loss, Harpal Sandhu, CEO of Integral, says the decision to start publishing monthly trading volumes was driven, in part, by the ongoing curiosity from market participants regarding the platform’s growth.
Nex Markets has reported an average daily volume (ADV) of $83.4 billion for spot FX trading on its platform last month. At the same time CME Group says it handled 832,000 FX contracts per day, which Profit & Loss estimates to be around $81.2 billion in notional value.
The NEX data represents a 10% decrease from the $92.7 billion ADV it recorded in March, but also a 10% increase from the $76.1 billion ADV that it recorded in April 2017.
For the 12-month period ending April 30, spot FX ADV was $86.9 billion, up 5% year-on-year.
This trend is generally consistent with volumes being reported by other platforms – Profit & Loss previously reported that Cboe FX, GTX and FXSpotStream all reported volumes that were down month-on-month, but up compared to April 2017.
The first four platforms to report average daily volume (ADV) for April paint a mixed picture with Euronext’s Fastmatch FX seeing an uptick in activity from March and Cboe FX, FXSpotStream and GTX seeing a slight decline. All four venues are higher on a year-on-year basis.
Cboe FX, formerly HotspotFX, reports average daily volume of $36.3 billion in April, FXSpotStream, $24.6 billion, FastmatchFX $19.4 billion and Gain’s GTX $13.3 billion. The Fastmatch Tape has also report a big gain in April.
Online trading provider CMC Markets has responded to the recent announcement by the European Securities and Markets Authority (ESMA) that retail clients will no longer be able to use their current leverage levels, by creating a new CMC Pro account for eligible clients.
The ESMA changes establish margin limits for clients, rather than the broker-dealers and CMC says the new account will allow clients to continue to trade with their current leverage levels.To be eligible, clients will have to demonstrate that they are capable of making their own investment decisions.
360T has been selected by M&G Investments to provide streamlined workflow technology for order handling and execution, and, separately, has agreed a partnership with Crown Agents Bank (CAB), a global wholesale bank that specialises in emerging markets.
In a release issued today, 360T says that the key to the selection of its Execution Management System (EMS) workflow solution by M&G was its stated commitment to develop the service to meet the cost, regulatory and best execution requirements of M&G while “engaging in an ongoing virtuous cycle of functional and capability innovation”.
CME Group has bucked the trend amongst FX platforms reporting a month-on-month decline in activity with a 3% increase in FX ADV. Elsewhere, NEX Group, which is subject to a bid from CME, reports NEX Markets handled $92.7 billion in March, a 14.4% drop month-on-month, but a 7.2% rise from `March 2017. It was a slightly more positive picture at Thomson Reuters, which reports spot ADV of $105 billion, down 7% from February but up 11% year-on-year - the firm also says non-spot activity increased 1.7% from February.