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In the FICC of it

In this week’s podcast Colin Lambert and Galen Stops tackle two big stories in the FX market: the recent flash crash in the Asia markets and the changes at Citi’s FX prime brokerage (FXPB) business.

Both Lambert and Stops express skepticism that the news regarding Apple’s profits in China was the cause of the flash crash, although the former is equally unsure about an alternative theory put forward by the latter to explain the price moves. Both agree though that the event was symptomatic of changes in the nature of liquidity in the FX market, and note a disparity between what many market participants will say in private and in public on this matter.

Discussing the news that Citi has shifted its FXPB into the prime finance and securities services (PFSS) division following potentially significant losses, Lambert and Stops question how this will impact the business and what the knock-on effects could be in the prime services space more broadly.

And finally – hang on to your hats – it’s prediction time. As the euro turns 20 this year, the editors have a go at predicting where the currency will be at the end 2019, secure in the knowledge that few (if any) are likely to remember these predictions and make fun of them this time next year as a result.

For more on the stories discussed this week:

FX Sees Flash Crash in Asia – But What Caused It?

Madgavkar Exits Citi as Bank Relocates FXPB Business


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Galen Stops

Galen Stops