Following on from Profit & Loss‘ recent Forex Network New York event, Galen Stops gives picks out a few key themes from each panel session for discussion with Colin Lambert.
On the trading side, they talk about whether there is such thing as “the wrong kind of volatility”, Stops says that panellist responses to a Brexit question perfectly sums up the confusion around recent political events in the UK and they question whether the industry has become so good at trading FX that it’s effectively killed market.
Looking at trends around credit intermedation, Stops reveals that there is an emerging debate about whether more buy side firms will gravitate towards the FXPB or centrally cleared model and the pair discuss why it might be inevitable that market participants will pay more for PB services in the future.
Lambert is then delighted to hear Stops report that speakers made the case that market impact isn’t always a bad thing and they discuss the challenges inherent around accessing the right data when analysing the impact of various execution methods.
Stops then explains why fund allocators at the event said that life is going to get even tougher for hedge funds that only trade FX, but also why they are remarkably relaxed regarding the recent lack of performance from CTAs in the portfolio.
The podcast ends with a discussion around cryptocurrencies, with Stops relaying the case made at the event for having them in the portfolio but also noting a strange comparison that seemed to be doing the rounds amongst the audience attendees.