And Another Thing…

I am in yet another airport lounge (podcast listeners will be glad to hear we are not recording here, however) so just a quick note to highlight the good work of LMAX Exchange in raising money for charity through some interesting means. The latest was The “Everest Rugby Challenge” and, as the title implies, four […]
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Refinitiv To Calculate Thai Benchmark

Refinitiv has been appointed as the official calculating agent for the Bank of Thailand’s official Thai Baht spot rate, forward points and implied swap rates. The new transactions-based benchmark succeeds the previous survey-based benchmark administered and calculated by Refinitiv. Known to market participants as THBFIX, it will be available from 2 May 2019. Refinitiv will […]
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ISDA Survey Highlights Close Out Netting as Crucial Factor in Derivatives Growth

Trading volumes in Asia’s derivatives markets are expected to increase, but achieving certainty on close-out netting is identified as an important factor in driving further development of local markets, according to a new survey of derivatives market participants active in Asia-Pacific, published by ISDA to coincide with the start of its Annual General Meeting (AGM) in Hong Kong. Nearly three quarters of survey respondents expect the proportion of foreign exchange derivatives trading executed in Asia ex-Japan to increase over the next three to five years, while 63% predict an increase in the share of interest rate derivatives traded in the region
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EC’s Updated AI Plan Still Attracts Criticism

The European Commission has published an update outlining the next steps for its efforts to build trust in AI and machine learning by creating what it terms “a European approach to artificial intelligence”. The plans have attracted criticism from the Center for Data Innovation, a non-profit research institute. In 2018 the EC established a High-Level Expert Group (HLEG), which was tasked with creating policy and investment recommendations to help the Commission deal with the technological, ethical, legal and socio-economic challenges that can arise from the broader use of AI. Upon launch, the EC said it wanted to strengthen the EU’s competitiveness in this area.
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BIS Launches 2019 Triennial Survey

The Bank for International Settlements (BIS) formally launched the 12th Triennial Central Bank Survey of Foreign Exchange and Over-The-Counter (OTC) Derivatives Markets – the survey that is universally used as the benchmark measure of the size of the daily FX market. Conducted every three years since 1986, the Triennial Survey is the most comprehensive source of information on the size and structure of global foreign exchange and OTC derivatives markets. It aims to help central banks, other authorities and market participants monitor developments in OTC markets and inform discussions about reforms to OTC markets.
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Former Barclays Trader Guilty of Euribor Manipulation

A jury at a London court has found former Barclays interest rate trader Carlo Palombo, guilty of manipulating the Euribor benchmark interbank lending rate, however it found a fellow former Barclays trader not guilty and is still considering its verdict in a third related case. The UK’s Serious Fraud Office (SFO) brought the case, alleging that Palombo, Sisse Bohart, who was acquitted, and Colin Bermingham, who is awaiting a verdict, colluded with former Deutsche Bank counterparts Christian Bittar and Phillipe Moryoussef to fix the benchmark rate set. The methodology alleged by the SFO was very familiar to anyone following these cases – the dealers allegedly pressured fellow workers who were charged with submitting the bank’s reference rate, to alter to suit the accused’s books. Bittar and Moryoussef were convicted last year on the same charges, the latter was given an eight-year jail sentence, which Bittar, who pleaded guilty, was sentenced to five years’ imprisonment.
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CFTC Votes to Provide Greater Brexit Certainty

The Commodity Futures Trading Commission (CFTC) has passed by unanimous vote, a provision to provide greater certainty to the global marketplace in the event of a "no-deal Brexit" precipitated by the withdrawal of the UK from the European Union without a negotiated withdrawal agreement. "At a time of heightened market uncertainty caused by Brexit, this Commission has worked over the past several weeks to bring clarity to participants in global derivatives markets by a series of separate actions and statements with its regulatory counterparts in London, Brussels and Singapore," says CFTC chairman Christopher Giancarlo.
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INTL FCStone Subsidiary to Expand Access to FX Platform

The Global Payments Division of INTL FCStone’s London based subsidiary, IFL, has announced plans to roll out its FXePrice platform to its entire network of counterparties.Launched in June 2018, FXePrice enables correspondent banks to feed local currency live prices electronically to IFL, allowing users to stream foreign exchange prices, which reduces latency and ensures efficiency by integrating with counterparties’ straight-through-processing (STP) systems. he platform automates the manual process of FX price discovery in emerging markets and facilitates instant electronic price discovery via both streaming and request-for-quote (RFQ) functionality.
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BNP, Millennium Launch AI FX Index

BNP Paribas today announces the launch of the BNP Paribas MGI Systematic Currency Alpha Index using artificial intelligence through machine learning. The index, created by BNP Paribas in partnership with Millennium Global Investments (MGI), went live in Q1 2019.MGI provides systematic FX signals to BNP Paribas, determining the long or short exposure to four liquid currency pairs selected to represent the global FX market (USD/GBP, USD/EUR, USD/AUD and USD/JPY). In a statement, the firms say the Index can be considered as a new frontier for investors seeking cross-asset portfolio diversification, as it is enhanced by signals generated by an artificial intelligence model that uses machine learning to identify the dominant factors driving the performance of currency pairs each day. 
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FastMatch: Broadening its Horizons

In 2016 Fastmatch saw year-on-year average daily volumes (ADV) on its platform grow by 54%, and no doubt this growth was at least partially responsible for Euronext’s decision to spend $153 million to purchase 90% of the platform in August 2017, as it subsequently registered a 44% increase in ADV for that year. 2018 saw strong, if not as spectacular, year-on-year ADV growth of 9% to $20.1 billion, but Kevin Wolf, CEO of FastMatch and head of FICC US at Euronext, instead highlights the increase in the number of clients using the platform as the key growth metric for the year. “When we think about client acquisitions, we break it down along two dimensions: one is the number of clients and the other is the diversity of clients,” he explains.
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