Tag: Banks

Banks

Study: FX Dealers Narrowing Focus to Chase Profits

A new study from Greenwich Associates suggests that FX dealers are narrowing their focus in terms of which products and clients they will cover.

For the study, Greenwich says that it conducted interviews with 2,393 corporate and financial users of foreign exchange around the world about market trends and their relationships with their dealers.

The results showed that, for the second consecutive year, significant market share was redistributed among the dealers in the top ranks of the FX market in 2016, with some leading dealers adding as much as two full percentage points in market share and others ceding similar amounts.

And Finally…

That we are still debating the positive or negative impact of non-bank market makers on the FX market doesn’t surprise me – what does is the simplistic level of debate over what I consider to be a fairly complex issue.
Yes the big prime brokers could shut these firms down with a hefty rise in prime brokerage fees or a withdrawal of credit totally – that would send most of them back to where they first emerged – the cleared world with its very limited spot foreign exchange market opportunities.

ISDA Calls for Infrastructure Standardisation

The International Swaps and Derivatives Association (ISDA) has published a whitepaper calling for greater standardisation and automation of derivatives market infrastructures.

The new paper, The Future of Derivatives Processing and Market Infrastructure, highlights a number of challenges with existing structures and processes, and recommends several steps the derivatives industry can take to create efficiencies – in particular, by embracing opportunities for further standardisation.

“The derivatives industry has become reliant on legacy infrastructures and processes that have been layered on top of each other over time. That might be the result of historical acquisitions, where the respective systems haven’t been fully integrated. More recently, the sheer pace of regulatory change has meant firms have been under pressure to tackle the next pressing deadline. The result is a derivatives infrastructure that is duplicative and based on incompatible operating standards, and this isn’t sustainable,” says Scott O’Malia, CEO of ISDA.

And Finally…

This really is a tricky time for the foreign exchange industry. The chat room scandal has truly opened a can of worms and it seems there is rarely a month that goes past without yet another case of unfair dismissal being brought and, more often than not, won. What strikes me, however, is how so […]

And Finally…

One line in the midweek column tweaked some interest among the readership, my mention of the “juniorisation” of the sales role in the banking world. I must confess I hadn’t thought about it too much, it has very much been a natural evolution as incumbents exit the industry and, more pertinently perhaps, the customer demographic […]

Banks Face More Legal Action – This Time Over Sibor

Three years after the Monetary Authority of Singapore (MAS) sanctioned 20 banks and 133 traders over breaches in good conduct regarding the local interest rate fixing (Sibor), two US investment funds filed a class action lawsuit in New York on Friday (July 1) alleging “a massive conspiracy” to rig interest rates. The two funds, FrontPoint […]

And Another Thing…

I don’t think there is anyone out there who doesn’t think the FX market performed well under the stress of the surprise outcome from the UK referendum last week, but I suspect the real test is only just starting. Don’t get me wrong, this is not one of my contrarian columns that will say the […]

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 […]