Tag: Aston Capital Management

Aston Capital Management

A New Breed of FX Hedge Fund

There is a new breed of hedge funds that are using artificial intelligence (AI) tools to trade the currency markets. Galen Stops takes a look at a few of these emerging funds.

“AI has become a catch-all phrase, everybody and their grandma wants to use it now because it’s a buzzword,” says Damien Loh, the CIO at Ensemble Capital, a Singapore-based hedge fund.

With an academic background in computer science, Loh spent 15 years at JP Morgan before launching Ensemble Capital in 2017 alongside Atsuo Ogaki, the former head of FX at Nomura in Tokyo and 22-year veteran of JP Morgan.

Aston Capital Management Gets Swap Dealer Status

Aston Capital Management is now a provisionally registered US Swap Dealer.

The National Futures Association (NFA) notified the firm and updated its website to reflect this news on April 2.

According to the NFA website: “A swap dealer (SD) is an entity that holds itself out as a dealer in swaps; makes a market in swaps; regularly enters into swaps with counterparties as an ordinary course of business for its own account; or engages in any activity causing the entity to be commonly known in the trade as a dealer or market maker in swaps.”

Built to Become Big

Galen Stops takes a look at how and why Aston Capital Management is planning to scale up following its recent $100m investment. 

Aston Capital Management recently received an injection of $100 million in AUM and an additional $5 million in seed operating capital from private investors.  Following this investment, the firm’s CEO Isaac Lieberman is, perhaps unsurprisingly, bullish about its future.

“We have a goal through our strategic mandate and product development timeline to have capacity to be managing $2 billion in AUM within two years and I can actually see us achieving this goal quickly as this business accelerates,” he says.

To help achieve this goal, Lieberman has deliberately been structuring the firm so that it can easily scale up in the future. For starters, the firm has been getting a whole slew of regulatory and accountancy registrations in place.

Can Silicon Valley Business Models Work in FX?

It seems that increasingly, some FX firms want to adopt the business models deployed so successfully by the large technology giants that have emerged from Silicon Valley.

Banks talk about developing their single-dealer platforms to mimic the Amazon model of being able to supply everything that their customer needs within one platform.

At least one trading venue is talking about moving to the Facebook model of charging nothing for the actual technology platform that it provides, because it will instead derive profits from the data generated by that platform.

The P&L Debate: Is TCA Just a Morality Carwash?

The subject of how data is used to conduct Transaction Cost Analysis (TCA) formed part of a lively debate at Profit & Loss Forex Network Chicago. Galen Stops moderated.

Paul Aston, the CEO of Tixall Global Advisors, proposed the motion that “TCA Is Just a Morality Carwash”, effectively arguing that many buy side firms are simply handing over their fiduciary duty to ensure best execution for their investors to their sell side counterparts, while using TCA to justify the trading decisions that they make as a result.

Opposing the motion was Isaac Lieberman, CEO of Aston Capital Management, who formed his argument around the proposition that market participants who are trading risk do so against a set of metrics by which their success is measured and therefore they are conducting TCA to show performance against these metrics. 

How Does FX Get Back to Growth?

After the Bank for International Settlements (BIS) Triennial FX Survey revealed last year that the industry has shrunk in terms of notional volumes for the first time in 15 years, speakers at Forex Network London outlined the factors that could help this market get back to growth.

During the discussion the speakers on the panel outlined a number of issues that have constrained trading volumes over the past three years, including technology shortcomings, a lack of investment in some areas of the market, and regulatory challenges.

Against this background, the question was put to the panellists, how does the FX industry get back to the kind sustainable growth that it witnessed between 2001 and 2016?

Aston Capital Goes Live in LD4

Aston Capital Management has gone live in the LD4 Equinix data centre, conducting the first test trades on Thursday last week.

“At Aston Capital we’re constantly looking to develop new relationships and grow our distribution, and we found that a lot of our trading partners and customers in London, Scandinaiva and throughout Europe in general, wanted to do their trading through London in order to reduce their latency and therefore improve their trading efficiency,” Isaac Lieberman, CEO of Aston Capital, tells Profit & Loss.

Non-Bank LPs Prove Their Worth During Brexit Volatility

Following the results of the UK referendum decision to leave the European Union last week the common consensus amongst FX market participants has been that the biggest surprise – apart from the result itself – was how well the FX market handled the resultant volatility. “Two months ago if you’d told me that we’d have […]

Non-Bank LPs Prove Their Worth During Brexit Volatility

Following the results of the UK referendum decision to leave the European Union last week the common consensus amongst FX market participants has been that the biggest surprise – apart from the result itself – was how well the FX market handled the resultant volatility. “Two months ago if you’d told me that we’d have […]