Tag: clearing

clearing

In the FICC of it

In this week’s podcast Colin Lambert and Galen Stops, respectively the managing editor and editor of Profit & Loss, analyse some of the highlights from the final day of the Forex Network Chicago conference. To start off with they discuss some of the key talking points from the credit panel, asking whether the FX industry […]

LCH Claims First with Link to FX Connect TradeNexus

Clearing house LCH has announced that it is the first clearing house to integrate with FX Connect TradeNexus, State Street’s FX trading platform that provides exception-based automated matching, trade and settlement confirmation enrichment and third party messaging. Kate Lowe, managing director, global head of TradeNexus, says, “Uncleared margin rules are changing the way the market […]

FXPB: It’s Been a Bumpy Road

Galen Stops charts the ups and downs of FX prime brokerage over the past 20 years and looks at how this segment of the market might be ripe for innovation going forward. Ask anyone who has been around in the FX market for the past 20 years to list the key developments that have shaped […]

HKEX Bids £31.6bn for LSEG

Hong Kong Exchanges and Clearing (HKEX) has made a proposal to the board of the London Stock Exchange Group (LSEG) to combine the two companies in a deal worth £31.6 billion. This deal would scupper the proposed $27 billion deal for LSEG to buy Refinitiv. “LSEG and HKEX are two of the world’s premier market […]

Atlas Bank Eyes a New Model for FX Clearing

Galen Stops takes a look at how Atlas Bank is taking a new approach to prime banking and clearing processing in Latin America’s FX markets. Atlas has been around for quite some time now, and in fact has a long history in the FX industry. The group initially formed in 1994 with the launch of […]

SocGen Begins Supporting Eurex FX Futures

Societe Generale (SG) is now supporting Eurex FX futures, from clearing to trading. SG’s clients will now be able to trade FX on Eurex, while any of the exchange’s clients will be able to execute bilaterally off-exchange against the bank or to move between OTC FX and listed FX using exchange for physical (EFP). Chris […]

Atlas Bank Granted Credit Rating by Moody’s Subsidiary

Atlas Bank has been granted a BBB- rating and a stable outlook by Equilibrium, an affiliate of Moody’s Investors Service that provides credit rating services in Latin America. The bank claims that this makes it the first bank in Latin America providing clearing and settlement services to have obtained such a credit rating, which it […]

LedgerX Gets Nod for Physically Settled Bitcoin Derivatives

The US Commodity Futures Trading Commission (CFTC) has approved LedgerX, a cryptocurrency trading venue, as a Designated Contract Market (DCM). This will allow LedgerX to offer bitcoin spot and physically settled derivatives contracts to retail clients, which it plans to do through its new platform, LedgerX Omni. Founded in 2014, LedgerX obtained approval to act […]

Citi Report Advocates New FXPB Pricing Model

New regulations will increase the cost of FX prime brokerage (FXPBs) services and all market participants – including executing brokers (EBs) – will have to share these costs, says a new report from Citi.The report, Collateral Damage? How Uncleared Margin Rules Will Revolutionise the FXPB Business Model, argues that FXPB is entering a “new market paradigm” driven by upcoming regulatory requirements that will increase both the value proposition and the cost of the services that they provide.The Uncleared Margin Rules (UMR) alluded to in the title of the report require market participants to post and segregate initial margin (IM) for derivatives transactions, including FX forwards, swaps and options, that are traded bilaterally.

In the FICC of it

Following on from Profit & Loss’ recent Forex Network New York event, Galen Stops gives picks out a few key themes from each panel session for discussion with Colin Lambert.On the trading side, they talk about whether there is such thing as “the wrong kind of volatility”, Stops says that panellist responses to a Brexit question perfectly sums up the confusion around recent political events in the UK and they question whether the industry has become so good at trading FX that it’s effectively killed market.Looking at trends around credit intermedation, Stops reveals that there is an emerging debate about whether more buy side firms will gravitate towards the FXPB or centrally cleared model and the pair discuss why it might be inevitable that market participants will pay more for PB services in the future.