Refinitiv has enhanced its data on China to meet demand from the global financial community for increased insight into Chinese trade and investment opportunities, by addingcomprehensive data from the China Foreign Exchange Trade System (CFETS), the main FX and fixed income venue for China, to its data platforms Elektron and Eikon. The firm says this […]
Lizzy Birmingham provides a brief roundup of the major FX moves this week, and the drivers behind each. 1) US Economy on “Recession Watch” says Morgan Stanley This Tuesday, chief US equity strategist at Morgan Stanley, Michael Wilson, warned investors of a possible upcoming US recession. In a note to clients, using recent data highlighting […]
Chinese RMB-denominated government and policy bank securities are set to be added to the Bloomberg Barclays Global Aggregate Index.The inclusion in the index will start in April 2019 and be phased in over a 20 month period.When fully accounted for in the Global Aggregate Index, local currency Chinese bonds will be the fourth largest currency component following the USD, EUR and JPY. Using data as of January 24, 2019 the index would include 363 Chinese securities and represent 6.03% of a $54.07 trillion index upon completion of the phase-in
There’s something for everyone in this week’s In the FICC of It podcast as Colin Lambert and Galen Stops traverse the US legal system, trading, crypto and China.
Listen in as Lambert explains why he is mystified at the prosecution’s flip-flop in the Mark Johnson case and angry at the FX industry’s previous lack of effort to explain how markets work to the US legal authorities; and Stops takes a look at a new report n his favourite industry – CTAs. Having had the data explained to him, Lambert also thinks he knows why some CTA sectors are doing well and some aren’t, so that’s another of his “theories” then…
Our podcasters then move onto debate whether crypto markets will evolve to an OTC model and whether this would be a good thing for attracting institutional money to what is still a relatively nascent market.
Stops closes out by reporting from an analysts’ briefing this week that highlighted a change in approach on the part of China to its programme of liberalisation of the yuan.
Martin Lin has joined BMO Capital Markets as head of capital markets, China.Based in Shanghai, Lin’s most recent role prior to this was at BNP Paribas, where he was trading head, FXLM China and Hong Kong. Lin had spent 14 years at the French bank in Shanghai and Hong Kong.Prior to that, Lin worked as a swaps trader as DBS Bank in Singapore.
China has fundamentally changed its approach towards RMB internationalisation, according to BNP Paribas China’s chief China economist, XD Chen.Speaking at a briefing in New York today, Chen explained that for the past five years the authorities in China had one main policy stance regarding the renminbi: to promote the internationalisation of the currency.However, he then added: “But now this policy stance, in our observation and together with our policy consultation, is no longer. In other words, they’re not going to use the government’s force to promote renminbi internationalisation, instead they will follow market forces.”
Fan Xu has been appointed head of Greater China Business for Saxo Bank, based in Shanghai and reporting to Saxo Bank founder and CEO, Kim Fournais. Xu will be responsible for the firm’s strategy for the region. He will be tasked with managing and developing relationships with key stakeholders and partners in Greater China, ensuring that the firm is well placed to leverage opportunities in the region as China’s financial markets continue to open.Xu joins with over 20 years of experience in financial services and markets, having previously worked for Citigroup in New York and China Everbright Bank in Beijing, and most recently, as CIO at CITIC Prudential Life Insurance in Beijing.
Greater automation in emerging markets is widely seen to be merely a matter of time. Profit & Loss talks to Darryl Hooker, former co-head of EBS Brokertec Market and currently consultant at Capitolis about his experience in helping bring a larger ‘e’ focus to Russia and China.
Profit & Loss: Can you give us an insight into the thinking that saw you focus on first Russian markets and then China when you were at EBS? What are the main signals that identify a frontier market ready to move into the mainstream of EM?
Darryl Hooker: A common pitfall in emerging markets is to make the mistake of considering them collectively despite the fact that they have very particular and specific nuances.
Galen Stops quizzes Jon Vollemaere, CEO of R5FX, about whether fintech solutions will be used in China, and emerging markets more broadly, to effectively replicate existing FX markets or create an entirely new ecosystem.
Galen Stops: How does the FX market in China compare to those in Europe and the US?
Jon Vollemaere: A lot of the Chinese dealing rooms look like the Western FX markets of the late ‘90s in the way that they’re set up and the lack of technology in them.
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.”