CLS and investment manager technology provider SigTech have announced a collaboration to provide CLSMarketData clients with access to SigTech’s back testing environment and analytics platform. Through the collaboration, CLS clients will have the option to use SigTech’s cloud-hosted Python-based research platform to perform tailored analyses of CLSMarketData. It will address, CLS says, increasing demand from […]
As well as the obvious areas around liquidity and spreads, the pandemic appears, if the anecdotal evidence of many of my recent conversations is anything to go by, to have reignited discussion around what constitutes best execution? I’ll be honest and say that I thought this subject was as settled as is it ever going […]
Oanda has selected FairXchange to provide the firm with independent execution analytics. As part of the deal, FairXchange will provide Oanda with access to its Horizon platform, which offers tools and techniques that help users manage and optimise their e-FX business. Horizon, which was reviewed by Profit & Loss last year, is designed to facilitate […]
It is one of the oldest questions facing a trader – how best to work out of a position involving two currencies that are rarely, if at all, supported by most market participants. In the deep and distant past, when FX markets were predominantly voice-traded and risk was managed on a deal-by-deal basis, this question […]
In conjunction with CLS Group and Japanese bank MUFG, Mosaic Smart Data is launching FXLiquidity, a new analysis service that looks at liquidity levels in foreign exchange markets and aims to provide the FX market FX market with transparency as the market continues to experience high levels of volatility. The data offers graphical views of […]
A series of coordinated central bank actions around the world has failed to stave off another collapse in equity markets with volatility spiking once again and several indices down more than 5% on the day. The Federal Reserve cut rates by 100bp on Sunday and promised further QE initiatives, it also suggested in its forward […]
The second – and penultimate – Irrational of 2019 is the Event of the Year and obviously this had to be held back to ensure that the Great British public did not don their subversive hats again and surprise at last week’s election. They did not to any great degree (although I don’t recall a […]
I know I have floated ideas around this issue before, but do we need to do more about that hour after the New York close than just talk about it? Flash events are starting to occur a little too frequently in FX markets for some peoples’ liking, so what can we do about it? Actually I think we can do quite a lot – or at least it would be a lot if all the noise around data capabilities isn’t just that – noise.
A new working paper from the Bank of England analyses the role of automated trading (AT) in FX markets in a period containing the 15 January 2015 announcement by the Swiss National Bank that it had removed its EUR/CHF floor and finds that while AT “generated uninformed volatility”, human traders did the opposite.
“This ‘Swiss franc event’ represents a natural experiment as one of the largest shocks to the FX market in recent years and probably the most significant ‘black swan’ event in the period in which AT has been a prominent force in FX markets,” the paper states.
LMAX Exchange has unveiled a partnership with an academic at the University of Oxford to develop a methodology for consistent evaluation of trading costs across liquidity pools that can be used by the FX industry.
Dr. Álvaro Cartea of the University of Oxford’s Mathematical Institute is a leading researcher and published finance expert specialising in high-frequency and algorithmic trading, market quality and financial regulation. Together, LMAX and Dr. Cartea aim to drive forward the industry’s understanding of FX TCA and produce mathematically robust findings of practical value to benefit all FX market participants, the firm says in a statement.