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Advanced Markets Adds Standard Chartered as PB Advanced Markets has signed Standard Chartered Bank as a foreign exchange prime broker. The addition will further extend the range of clients that can use prime brokerage to trade via Advanced Markets’ Direct Market Access (DMA) liquidity infrastructure. Standard Chartered will provide prime brokerage services to the newly launched FCA-registered Advanced Markets (UK) Limited operation based in London as well as the company’s ASIC-registered operation in Australia. The companies operate as independent entities and will have discrete prime brokerage accounts at the bank.
CFTC Fines Ex-Deutsche Trader for Hiding Swaps Losses The US Commodity Futures Trading Commission (CFTC) has fined a former Deutsche Bank inflation swaps trader for attempting to cover up losses. The Commission has also closed its related investigation into the bank, citing its self-reporting of the incident and its cooperation. CFTC says it has filed and settled charges against Jacob Bourne, a former managing director at Deutsche for fraudulently mismarking swap valuations to conceal trading losses of $16 million. The CFTC Order requires Bourne to pay a $350,000 civil penalty and permanently bans him from trading on exchange and seeking registration with the CFTC, among other prohibitions.
Banks Face New FX Lawsuit 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).
CLS Volumes Down in October Data from CLS shows that the utility handled $1.71 trillion per day in October, slightly down from September’s $1.729 trillion but 5.8% up year-on-year. CLS settled a daily average of $471 billion in spot FX, up 5.3% month-on-month and 10.3% up year-on-year. This generally reflects the volume reports issued earlier this month by the major FX trading platforms. There was a decline in FX swap activity, however, with CLS settling $1.161 trillion per day in these products, down 3.2% from September but up 6.5% from October 2017. In outright forwards, settlement activity declined on both a month-on-month basis (by 6%) and year-on-year (by 21.2%) to $78 billion per day.
Mosaic Launches FICC Analytics Product FICC data analytics company Mosaic Smart Data has launched a new feature for its MSX platform enabling users to instantly generate text reports on their trading activity data using machine learning. The feature will be available to all MSX users and will allow a trading activity report, which would take a member of staff hours to create, to be generated instantly. The firm says the new service uses a machine learning technique called natural language generation (NLG), meaning MSX can generate trading activity reports on any set of analytics on the platform including both voice and electronic trade data.
Thacker Exits Standard Chartered, Allington Soon to Follow Neh Thacker has left Standard Chartered, where he was global head of macro trading, and Chris Allington is also going to be leaving his position as regional head, financial markets West. A spokesperson for the bank confirmed the departures, stating that Allington is due to leave in the coming weeks “to pursue other opportunities”. Profit & Loss understands that Cengiz Belentepe will become regional head, financial markets West, in addition to his current role as global head, commodities. Roberto Hoornweg, global head, financial markets will assume management responsibility for the macro business on an interim basis.
CTAs Continue to Struggle All of Societe Generale’s (SG) CTA indices were down in October and are now in negative territory year-to-date. The SG CTA Index was down 2.79% and the SG Trend Index was down 4.29%. The short-term and quant macro strategies fared considerably better as the SG STTI Index was down marginally by 0.40%. Continuing from September's dip, losses were driven primarily by trend-following strategies, with losses in commodities, equities and bonds. Commodities were a particular drag on results, with the upwards trend reversing and the oil market losing 1.58%. A number of long equity market positions also reverted, while bond markets rallied against the developing downwards trend, leading to losses in many of these markets.
IHS Markit Turns to the Cloud for Post-Trade Processing IHS Markit has introduced new, cloud-based technology for post-trade processing of OTC derivatives trades. Called TradeServ, the platform launched in September for matching, confirming and clearing trades of NDFs. In total, 32 banks and asset managers are now live with TradeServ, which uses microservices architecture and cloud infrastructure to make the platform “flexible, scalable and reliable”, the firm says. It aims to provide customers with better access to trade data, easier integration and more continuous service upgrades in response to changing regulation and industry needs.
Virtu Pays $1 Billion for ITG Virtu Financial has continued to expand its business by entering into a definitive agreement to acquire Investment Technology Group (ITG) in a cash transaction valued at $30.30 per ITG share, for a total of $1 billion. The deal has been rumoured for several months, as reported by Profit & Loss in October. Describing what it terms as a “significant acquisition” Virtu says the deal underscores its commitment to its institutional client franchise and is a natural next step in its growth.
EBS Markets FX Volume Higher, Refinitiv Lower in October EBS Markets has reported average daily turnover (ADV) of $88.7 billion in spot FX products in October, a 3% increase on September and a 10% increase year-on-year. The firm, the name of which will be reverting to EBS following the completion of its takeover by CME Group, has now reported three consecutive monthly increases, following a sharp drop in July – at $88.7 billion turnover is slightly below the average for the first nine months of the year of $93.2 billion.