IHS Markit is partnering with Cobalt through its MarkitSERV business to deliver and sell post-trade processing services for FX, and is also making a strategic investment in the firm.“In working together, MarkitSERV and Cobalt will offer a shared post-trade infrastructure designed to replace legacy technology and manual processes, bringing increased efficiency and reduced operational risk to the FX market,” says IHS Markit in a release issued today.The integration between the firms is already complete, with trade data flowing from customers and trading venues via MarkitSERV into the Cobalt platform.
The latest round of FX turnover data from a group of the world’s FX Committees show that volumes dipped slightly in October 2018 compared to April last year when they hit a new high mark. Average daily reported UK FX turnover was $2.6 trillion per day in October 2018. Although this is the third largest turnover figure on record, it represents a 4% decrease from the record high of $2.7 trillion reported in April 2018. Turnover by instrument was mixed in the UK. Spot increased for the third successive reporting period, gaining 3% compared to April 2018 to reach $775 billion traded per day. This represents a 14.5% year-on-year increase in volume.
The availability of liquidity is the biggest daily issue facing FX traders right now, according to a new survey by JP Morgan.The survey results come from 200 of JP Morgan’s largest Institutional clients, with the majority being FX traders and the rest being rates and commodities traders.In total, 40% of survey respondents cited liquidity availability as the biggest day-to-day issue facing traders in 2019, with 25% instead pointing to efficiency of process, 18% to best execution requirements and 17% to price transparency
Citi and Eaton Vance Management have cleared the first FX cash-settled forwards at CME Group. CME cleared the two EUR/USD trades on January 15. The exchange group currently offers clearing for 26 currency pairs of FX cash-settled forwards and 11 pairs of NDFs.“CME Group is pleased to clear our first cash-settled forwards, which provide a new capital-efficient way for our customers to trade G10 foreign exchange. This first cash-settled trade, combined with the recent increase in our non-deliverable forward clearing volume in late 2018, allows us to work with our clients, clearing members and liquidity providers to help customers mitigate their risks through cleared solutions,” says Sean Tully, global head of financial and OTC products at CME.
Edgewater Markets has hired Sal Provenzano as managing director of eFX Sales. He will based in the firm’s New York office.“I am looking forward to joining Edgewater Markets’ team and the opportunity to contribute to the overall growth of the company. Based on the focus and diversification of proprietary product offerings, the rapidly expanding global footprint, and the customised end-user trading solutions being offered to institutional clients, Edgewater’s service offering is very compelling,” says Provenzano.Before GTX, Provenzano was at Velocity Trade, a global institutional and corporate forex broker, where he was head of institutional FX for the Americas region. Prior to that, he held a range of senior level positions with global brokerage firms and large commercial and investment banks, including ABN Amro and Prudential Bache, where he was global head of FX prime brokerage.
OTCXN, a blockchain-powered capital markets infrastructure company launched a new foreign exchange trading venue, LiquiMatch FX.This ECN is an institutional-only FX dark pool embedded in a lit pool, providing users with multiple trading options simultaneously. With no visible book or ticker, dark pool users will be able to trade without broadcasting their activity to the visible markets, meaning that users should be able to minimise their impact on the market and reduce slippage. When users wish to show their liquidity, they can do so by sending lit orders to the combined book.
Eddie Wen’s role at JP Morgan has shifted from being global head of e-commerce for the bank’s macro businesses - covering FX, EM, rates and commodities - to being global head of digital markets.This change is part of the creation of a new organisation within JP Morgan, Digital Platforms & Services, that was announced in September 2018 and will run across all of its operations, engineering, digital, data and analytics capabilities.The group is co-headed globally by Guy Halamish, previously CFO of Global Markets, and David Hudson, previously the head of the Markets Execution business. An internal memo seen by Profit & Loss says that both will be members of the Corporate Investment Bank (CIB) Management Committee.
Spotex has hired Tom Reichel and Paul Beatty as managing director and director, respectively.Reichel will be based in Chicago and Beatty in Jersey City. Both will report into John Miesner, the firm’s recently hired executive managing director and global head of sales and distribution. Prior to joining Spotex, Reichel was managing director, FX sales, at GTX. He previously held senior sales and trading roles at Hotspot FX (now Cboe FX), Kingstree Trading and Chicago Research and Trading (CRT).
Beatty joins Spotex from TP ICAP. Prior to joining the broker, he was global managing director, Tradebook FX at Bloomberg.
Martin Lin has joined BMO Capital Markets as head of capital markets, China.Based in Shanghai, Lin’s most recent role prior to this was at BNP Paribas, where he was trading head, FXLM China and Hong Kong. Lin had spent 14 years at the French bank in Shanghai and Hong Kong.Prior to that, Lin worked as a swaps trader as DBS Bank in Singapore.
New data from the Futures Industry Association (FIA) shows a 20.2% increase in the number of futures and options contracts traded globally on exchanges in 2018.Futures volume rose 15.6% to 17.15 billion contracts traded, while options volume rose 26.8% to 13.13 billion contracts traded."The rapid growth in derivatives trading on exchanges around the world highlights the value that these products continue to provide for end-users and investors," says Walt Lukken, president and CEO of FIA.
The overall rate of growth was the highest since 2010, when rapid growth in Asia-Pacific and Latin America combined with a recovery in the North American interest-rate sector to produce a growth rate of 26.4%.