Michelle Hemstedt

Unbundled Services: Credit and Liquidity – Old Problems, New Solutions

One of the things that makes FX a truly unique market is both its scale and the diversity of the market participants that operate within it. Asset managers, corporates, international banks, regional and mid-tier banks, hedge funds and prop trading firms from all around the world have a real need to access the wholesale FX market.

In many cases though, today, this access occurs via credit intermediaries. This intermediary model places fundamental constraints on the credit available to clients and, subsequently, on the counterparties that they can access.

MiFID II: The Business Benefits of Compliance

There’s a wave of change sweeping across non-equity markets driven by regulatory initiatives and the rise of non-bank liquidity providers. Other factors driving buy-side adoption of Transaction Cost Analysis (TCA) in FX are the need to generate alpha on investment returns, and regulatory scrutiny? of trading practices in over-the-counter (OTC) instruments.

TCA is a broad term which doesn’t describe the actual analysis to be carried out. Asset managers who rely on custodian banks to execute currency trades have a compliance obligation to analyze these FX trading costs.

By monitoring fill rates, TCA tools can help traders determine if ‘last look’ is occurring, and then decide whether or not to shift their trades to other venues.

Virtu’s Shay Takes New Role at Nasdaq

John Shay, most recently a partner at Virtu Financial, is joining Nasdaq as global head of fixed income, commodities and clearing, reporting to Hans-Ole Jochumsen, president of Nasdaq. Shay takes up his New York-based role in late October.

Shay spent most of his career with ICAP (Icap) before being recruited by Virtu’s founder, Vincent Viola, in 2007. At Virtu, Shay was responsible for managing all outside venue, vendor and trading relationships, including all prime and FCM counterparties, as well as all exchange, ECN and ATS relationships with a focus on fixed income, currencies and commodities.

Asset Managers: Creating a Strategic Response to FX Structural Change

Viewpoint from Andrew Cromie, Global Head of Product Management for Institutional Investors, 360T Group In 2003 I was invited to a meeting with a large global asset manager to discuss an electronic trading solution for their FX business. In that meeting I shared with them how they could achieve Straight-Though-Processing (STP), reduce risk in their […]

And Another Thing…

I’ve been pondering something for a week or two now, regarding Currenex and what the rumour mill has as its impending sale; and the thing is, I think the rumour mill – not for the first time – may have it wrong. Obviously with the Hotspot and 360T deals in the book speculation over other […]

HSBC Sets Aside $1.3 Billion for Ongoing FX Investigations

HSBC has put aside $1.3 billion in legal provisions to resolve the ongoing investigations into FX market manipulation according to its interim half-year report. “Various regulators and competition and law enforcement authorities around the world, including in the US, the EU, Brazil, South Korea and elsewhere, are conducting investigations and reviews into a number of […]

Hayes Handed 14 Year Prison Sentence for Libor Rigging

Tom Hayes, the first individual to be charged and stand trial in the UK for manipulating the Libor benchmark, has been sentenced to 14 years in prison. Hayes, a former derivatives trader at UBS and Citigroup, was found guilty by a jury at the Soutwark Crown Court of all eight counts of conspiracy to defraud. […]

Brown Exits EBS BrokerTec

Edward Brown has left EBS BrokerTec as part of the new management structure announced last week. Brown had been working as the head of strategic initiatives at EBS since 2012 and continued in the same role once the FX platform was merged with BrokerTec last year. Prior to that, Brown had spent 10 years as […]

ANZ Dismisses Trader in Benchmark Rigging Case

ANZ Bank says as part of its role in assisting the investigation by the Australian Securities and Investments Commission (ASIC) into the Australian Bank Bill Swap Rate (BBSW) market it has dismissed an un-named employee. The bank says it is continuing to cooperate with the ASIC investigation and to date, this has involved a “significant […]