State Street is reshuffling senior FX staff, with James Reilly being appointed as the global head of Currenex and Beverley Doherty as global head of FX Connect. As a result, David Newns, formerly head of Currenex and SwapEx, will now take on the newly created role of global head of GlobalLink Execution Services.
Additionally, Stephen Dispenza has been promoted to global head of sales for Currenex, reporting to Reilly. Dispenza previously served as North American head of sales for the platform. As part of the changes, market sources tell Profit & Loss that Rick Schonberg has left his role as global head of product development and head of Currenex for North America, however this could not be officially confirmed by press time.
Speaking exclusively to Profit & Loss about why State Street is making these changes, Newns comments: “Fundamentally the new structure that we have implemented will enable us to better address some of the key macro trends within the FX market. Specifically, new regulations in the FX space combined with broader industry trends are driving a convergence of the execution requirements of the active FX trading and the real money space. Real money firms are now showing an increasing appetite for the tools that support efficient FX execution that have traditionally been part of the active trading participants arsenal for more than a decade. We think that this new structure will enable us to better provide our customers with solutions to the demands that this convergence will create.”
“Mifid II clearly has a big impact on the FXConnect’s customer base. Initially the expectation was that said impact would be limited to European firms but I think that it’s become very apparent this this regulation is going to have a global reach, and in many instances the workflow requirements of global asset managers certainly means that they won’t be able to avoid Mifid II and as a result, in many cases, trading on MTFs,” says Newns.
He adds: “Looking at historical evolution of FX activity in the real money space: firms have traditionally focused on efficiency, error reduction and improving the robustness of workflow through straight-through-processing leveraging platforms such as FX Connect. But now, with additional impetus provided by Mifid II, there is huge focus on best execution as well, and I think that the transaction cost analysis aspect of best execution means that there will be an ever increasing awareness from buy side firms about the type of liquidity that they’re accessing, the way that they’re accessing that liquidity and then the mode by which they’re executing their FX.”
In his new role, Newns will oversee both of State Street’s FX platforms, both Currenex on the active trading side and FX Connect on the real money side. In addition, he will be responsible for State Street’s white label partnerships in the fixed income and futurised interest rates swaps markets with Liquidity Edge and Eris Exchange, respectively.
Meanwhile, Reilly – who Profit & Loss previously reported joined State Street in August – will be tasked with expanding the Currenex business and creating new partnerships. Reilly joins State Street from Cantor Fitzgerald, where he was most recently global head of FX sales and trading.
Meanwhile, Doherty takes on her new role as global head of FX Connect, having most recently worked as the chief operating officer and North American head for GlobalLink, State Street’s suite of e-trading platforms, technology, data and workflow solutions. Prior to that, she held various roles in Currenex, including business development and leading corporate sales.
Both Reilly and Doherty will report into Newns.
“I’m very pleased to welcome James to our team, as well as announce the promotions of David, Stephen and Beverley,” says Martine Bond, head of GlobalLink. “David’s expanded role will focus on leveraging technology across platforms and creating synergies in GlobalLink’s core execution and trading platforms, and will help us better meet our clients’ challenges in the FX industry. And I’m also excited to have James on board as his reputation as a leader and innovator gives me great confidence in his ability to bring our business to the next level.”