Tag: BIS

BIS

FX and the Big Bang Theory

As electronic trading went mainstream, it created an explosion of growth in the market. But has this growth run out of steam? Galen Stops takes a look. The Big Bang Theory – in addition to being a popular American sitcom – is a well-known scientific thesis that posits the universe started with a small singularity […]

BIS Establishes Central Bank Innovation Hub

The Bank for International Settlements (BIS) has announced plans to establish an innovation hub to “foster international collaboration on innovative financial technology within the central banking community complementing the already well established cooperation within the existing committees”. The role of the BIS Innovation Hub will be, the bank says, to identify and develop in-depth insights […]

BIS Launches 2019 Triennial Survey

The Bank for International Settlements (BIS) formally launched the 12th Triennial Central Bank Survey of Foreign Exchange and Over-The-Counter (OTC) Derivatives Markets – the survey that is universally used as the benchmark measure of the size of the daily FX market.
Conducted every three years since 1986, the Triennial Survey is the most comprehensive source of information on the size and structure of global foreign exchange and OTC derivatives markets. It aims to help central banks, other authorities and market participants monitor developments in OTC markets and inform discussions about reforms to OTC markets.

Multi-Dealer Liquidity on the Rise

Although the latest FX committee turnover data hold no terrors for other channels, a longer term trend does seem to be confirmed that more volume is heading towards the multi-dealer model, especially those on a disclosed basis. Colin Lambert takes a look.The historically clichéd method for a customer to execute an FX hedge was to call three or four banks and ask for a price. Surprisingly, even as relatively recently as late 2017 customers were still telling Profit & Loss and other industry surveys that they still preferred to pick up the phone, but more recent data suggest this is no longer the case and that customers are moving to the e-channel for their FX needs.

Multi-Dealer Liquidity on the Rise

Although the latest FX committee turnover data hold no terrors for other channels, a longer term trend does seem to be confirmed that more volume is heading towards the multi-dealer model, especially those on a disclosed basis. Colin Lambert takes a look.The historically clichéd method for a customer to execute an FX hedge was to call three or four banks and ask for a price. Surprisingly, even as relatively recently as late 2017 customers were still telling Profit & Loss and other industry surveys that they still preferred to pick up the phone, but more recent data suggest this is no longer the case and that customers are moving to the e-channel for their FX needs.

The Profit & Loss Crystal Ball

Once again, it’s that time of year when our editorial staff dust off the infamous Profit & Loss crystal ball in order to take a peek into the future and tell our readers what they should expect from the year ahead. Colin Lambert’s “Trade of the Year” makes a welcome return, and he’s back with a bang as he focuses on the drivers of the ever-popular NOK/MXN pair. As has become custom, Lambert is also predicting consolidation within the FX industry, but regular readers might just be surprised to find out that for once he doesn’t think that the M&A activity will be on the platform side this year.

FX in Asia: A Question of Risk and Reward

The potential for Asian FX markets has long been talked about but has rarely been delivered, that may be changing, however, as Colin Lambert finds out.

When, in the early morning of October 7, 2016, the FX market witnessed a flash crash in Cable, there was a collective metaphorical shrugging of the shoulders, as epitomised by one London-based trader who told Profit & Loss, “It’s Asia – that type of thing happens.”

The perception is that institutions pay less attention to Asia, allocate fewer resources to the region generally and, as one global head of FX puts it, “Rely upon Asia not to drop the ball.”

BIS Paper Maps Out a Path to Crypto Regulation

A new paper included in the latest Bank for International Settlements Quarterly report argues that regulation of cryptocurrency markets can be effective, especially at national level.
The report, by Raphael Auer and Stijn Claessens at the BIS, notes that cryptocurrency markets are often seen as operating outside the reach of national authorities, but it also points out that can also apply to other asset classes and emergent technologies. What sets cryptocurrencies apart is that they can function without institutional backing and are intrinsically borderless, which, the report argues, raises the question of whether one can expect regulation – in particular national regulation – to be effective.

In the FICC of It

In this week’s In the FICC of It podcast managing editor Colin Lambert and editor Galen Stops continue the tradition (yes, we know it’s three weeks in) of slamming a white paper from one of the world’s authorities.
To find out the winner of this week’s “obvious conclusion” prize, as well as hear their thoughts on Mark Johnson winning bail and Deutsche Bank’s fine for FX malpractice, download the podcast now.
Along the way you will also hear about a panel that was “moany”, they give a sneak peek of an exclusive story and, most importantly, they go truly off piste by giving their World Cup predictions!

BIS Paper Sees Some Evidence EUR/CHF Floor Break was Signalled

Given how the EUR/CHF cross collapsed immediately following the removal of the pair’s artificial floor by the Swiss National Bank (SNB) in January 2015, it would seem an obvious answer to the question, “was the event expected” would be “no”. The cross fell from its SNB-imposed floor at 1.2000, hitting 0.7000 at one stage before the “official” low was set at 0.85, finally settling around 1.05.
A new paper published by the Bank for International Settlements (BIS), however, studies events in the FX market leading up to the removal of the EUR/CHF floor in January 2015, and while it is not conclusive, it does find evidence that some option markets were predicted the break lower in the cross.