CLS Volumes Tick Up in March

The average daily volume (ADV) of FX trades submitted to CLS was $1.86 trillion last month, up 8% compared to February but largely flat compared to March 2018. The ADV of spot trades submitted to CLS was $439 billion, up 9.2% month-on-month and but down 8.5% year-on-year. The ADV of swaps was $1.31 trillion, up […]
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Citi Report Advocates New FXPB Pricing Model

New regulations will increase the cost of FX prime brokerage (FXPBs) services and all market participants - including executing brokers (EBs) - will have to share these costs, says a new report from Citi.The report, Collateral Damage? How Uncleared Margin Rules Will Revolutionise the FXPB Business Model, argues that FXPB is entering a “new market paradigm” driven by upcoming regulatory requirements that will increase both the value proposition and the cost of the services that they provide.The Uncleared Margin Rules (UMR) alluded to in the title of the report require market participants to post and segregate initial margin (IM) for derivatives transactions, including FX forwards, swaps and options, that are traded bilaterally.
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New Goldman Sachs Algo Offers Basket FX Trading

Goldman Sachs has launched a Basket Algo, which gives clients the ability to take numerous FX trades and then trade them as a basket.“The launch of this algo came from really recognising the pinch points of clients’ workflows and understanding what they’re trying to achieve,” David Wilkins, global head of e-FX sales at Goldman Sachs, tells Profit & Loss. “And I want to make it very clear: this is not any kind of simple trade batch uploader. Indeed, we think this is an entirely new way to trade FX.”The essential thesis behind the algo is that deeper examination of client workflows and trading activity shows that although these firms tend to execute trades on an individual basis, in many cases, they don’t need to be, and it would in fact be cheaper and more efficient for them to instead execute them as a basket.
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Barclays Launches New Algo

Barclays has added a new algorithm, BARX Peg, to its e-FX trading platform.Available within Gator, the algo is designed to allow clients to minimise both the amount of spread paid and market impact by accessing Barclays’ franchise liquidity pools so that trades can be filled entirely through internalisation.The algo has five different target execution rates which provide exposure to Barclays’ liquidity through a variety of channels, including: the BARX single dealer platform (GUI), multidealer platforms and API connections. The execution rates, which represent the varying speed at which fills may occur, range from fast, which includes all 5 Barclays franchise liquidity pools, to slow, which only includes the GUI.However, Barclays notes that utilising the algorithm may reduce the certainty of execution.
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Jyske Bank Signs NCFX for Data

Denmark’s Jyske Bank says it has selected New Change FX (NCFX) as an independent data source for its capital markets business. The bank’s Markets division will use the data from the independent, ESMA regulated, entity to analyse its FX business. “[NCFX] provides us with the ability to objectively measure our FX flows against a regulated set of data that is independent of our own stream of FX liquidity,” says Jørn (Luffe) Sodborg, director, head of e-trading and distribution at Jyske Markets.
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JP Morgan Makes Algo Central Available Via Bloomberg

JP Morgan has made its execution services tool for FX algos, called Algo Central, available on the Bloomberg App Portal.Bloomberg Terminal subscribers globally can access the Bloomberg App Portal, so by making Algo Central available on the portal, JP Morgan is offering additional choice of where its clients can access its FX algo execution tools. Algo Central, previously only available via the JP Morgan Markets Execute platform, provides access to the firm’s pre-trade, real-time, and post-trade analytics and allows investors to manage multiple algo strategies simultaneously.Richard James, co-head of macro markets execution at JP Morgan, says:
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Coolest Banks to Search the Net Sample

You can imagine that, after three decades of shooting some of the world’s best surfers, filmmaker Taylor Steele has amassed a lot of unseen footage. Like, a lot a lot. Steele started showing up to the beach with his camera back in the late ’80s/early ’90s, and not long after graduation (and subsequently meeting Kelly […]
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Surprise, Surprise, Timing Blamed for Increased Volatility Following SNB’s Unexpected 2015 Move

A new research report from JP Morgan Chase Institute highlights the impact of central bank communication choices on financial market volatility.In the report, Does the Timing of Central Bank Announcements Matter?, the authors analysed data around the Swiss National Bank’s (SNB) decision to remove the EUR/CHF floor in January 2015, and found evidence that the timing of the decision increased subsequent market volatility.This latest research builds on a previous paper released by JP Morgan in June 2018, in which it found evidence that many hedge funds had predicated trading strategies on the belief that the SNB would maintain the EUR/CHF floor at 1.20.
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HSBC Settles $250bn of FX Using Distributed Ledger Technology

HSBC has now settled more than three million FX transactions and made more than 150,000 payments worth $250 billion using distributed ledger technology (DLT), it announced today.The bank’s DLT solution, called HSBC FX Everywhere, has been used for the past year to orchestrate payments across HSBC’s internal balance sheets.HSBC highlights three key benefits of the solution. The first is that it provides a shared, single version of “the truth of intra-company trades”, from execution through to settlement, which reduces risk of discrepancy and delay. Secondly, it means that confirmation and settlement is automated by matching and netting transactions, which reduces costs and reliance on external settlement networks.
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New York Fed Publishes Policy on Confidential Market Information

The Federal Reserve Bank of New York has taken the step of publishing a statement detailing how it handles confidential information from foreign exchange and Treasury market participants. The New York Fed says it is committed to the use and handling of confidential information about participants in financial markets “in a manner that promotes the integrity and efficiency of these markets, and is consistent with goals of the Treasury Market Practices Group (TMPG) Best Practices and the FX Global Code”.
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