Ian Daniels, executive director, head of e-FX distribution, EMEA, at Nomura, talks about algorithmic trading trends in the FX market.
Profit & Loss: Since you joined Nomura, you’ve been working on developing the bank’s algo offering, what are the latest developments there?
Ian Daniels: Our algos are now live on Bloomberg and will soon be live on a number of other major third party venues. I think that one of the benefits of being a later entrant into this space is that you have the experience of previous roll-outs to draw upon. So we knew that access to liquidity and the customisability of our algos would be important characteristics for our clients and that’s why we created algos that enable clients to execute in a default mode or that can be tailored to meet their specific needs.
Carlos Mosquera Benatuil, the CEO of Mexico-based Solidus Group, which focuses on digital finance through its crypto hedge fund, Solidus Capital, and crypto OTC desk, Solidus Markets, talks to Profit & Loss about why cryptoassets are more than just a vehicle for speculation in Latin America.
Profit & Loss: What are some of the key differences you see between crypto trading in Latam compared to the US?
Carlos Mosquera Benatuil: So there are only a few places for cryptoasset price discovery in Latam, but the bigger exchanges are pretty good. The market still lacks sophisticated traders, however, which has actually been a challenge for us as we’re looking to hire staff for the proprietary trading desk that we’re building out.
Edward Woodford, the co-founder of the trading venue Seed CX, talks about what it really means to offer an institutional grade platform in the rapidly evolving crypto market.
Profit & Loss: You recently secured $15 million of investment. There’s obviously a lot of crypto-related ventures out there looking for investment, what was the focus of your pitch?
Edward Woodford: The key is that we’re entirely focused on the institutional market, which in turn affects how we build our systems, how we build our products, and it dictates our entire outlook and approach. The trend that we see is more institutional players coming into this space, this institutional flow dominates retail flow, and we’re looking to service these institutions.
Marcus Samuelsson, portfolio manager at Ericsson, talks about what “best execution” means from a corporate’s perspective.
Profit & Loss: It’s often assumed that corporates are less sensitive to FX pricing because they view it as part of a broader cost of their banking relationship. Do you think that assumption is fair or is it a bit outdated now?
Marcus Samuelsson: While Ithink that you’re correctthat many corporates do think oftheir FX as being part of a broader banking relationship, for us this is not the case.
Bill Lipschutz talks to Profit & Loss about how the FX market has changed since he founded Hathersage Capital Management, and why the barriers to entry for currency-focused hedge funds are going up, not down.
Profit & Loss: What products do you trade and what types of strategies do you deploy? How would you describe your trading philosophy?
Bill Lipschutz: Hathersage trades G10 currency pairs and plain vanilla options on those pairs. Our strategies embrace one or the other of two basic approaches. They are either: tactical, momentum driven or strategic, macro fundamental. We are 100% discretionary, highly focused and uniquely experienced.
The FX Global Code of Conduct has had a big impact on how FX markets operate, nowhere more so than in the area of order management. Colin Lambert talks to Kieran Fitzpatrick, CEO and founder of Barracuda FX, about the impact of the Code; the need for transparency around order management and the technology required to deliver it. They also discuss the opportunities facing regional banks in order management, as well as look at why some participants still want to do things manually.
Dash, an open source, peer-to-peer cryptocurrency that launched in early 2014 as a fork of the Bitcoin software, is aiming to shift its image from being known initially as ‘the privacy coin’, by redefining its benefits as a payments-oriented network with a new release on the way. CEO of Dash Core Group, Ryan Taylor, talks to P&L about what’s coming up for the altcoin in 2018.
Profit & Loss: With something like 2,000 cryptocurrencies currently available, how does dash differentiate itself?
Ryan Taylor: Dash has a long history of being one of the more innovative coins
Colin Lambert talks to David Faulkner, head of business development at Fluent Trade Technologies, about the need for new thinking around how the FX industry evolves technology; the case for outsourcing non-IP processes and how technology can play a key role in helping a firm adhere to the FX Global Code of Conduct. They also discuss how this can help larger trading firms compete more successfully with smaller, nimbler trading firms in markets, as well as better focus their investment dollars.
FX markets are largely seen as mature in terms of market structure and technology, but what about fixed income markets? Colin Lambert talks to Steve Toland, founder of TransFICC about the complexities and challenges involved in modernising these markets.
He finds that while fixed income markets are behind FX markets in terms of market structure and automation, they are catching up quick, but the biggest challenge is the sheer breadth and complexity of products traded - often on the same desk.
The traditional Markets business model in banking is under pressure, Colin Lambert talks to Imed Souki, global head of FRC trading at UBS, and Christopher Purves, recently appointed head of UBS’ Strategic Development Lab for FRC, about how the bank is responding to a such a challenging environment.
Colin Lambert: UBS recently announced a change in structure for its FX, Rates and Credit (FRC) business, can you outline the new business model?
Imed Souki: There has not been a significant change in the structure of the business, it is really a continuation with me taking sole responsibility for the business today, whereas Chris is tasked with taking it where it needs to be in the future. The client relationship dynamic is changing and we want to ensure we are, and remain, relevant to our clients.