Tag: Currencies

Currencies

LCH Adds Five Currencies to Swaps Clearing Suite

LCH has expanded its non-deliverable interest rate swaps offering to include five additional currencies. Market participants are now able to clear this product denominated in Brazilian real, Chilean peso, Colombian peso, Taiwan dollar and Thai baht.This builds on LCH’s existing non-deliverable interest rate swaps offering of Chinese yuan, Indian rupee and Korean won, launched in April 2018. LCH has cleared over $5.47 trillion of these currencies since going live.
Cameron Goh, global head of product, rates at LCH, says: “We’re delighted to be expanding our non-deliverable swaps offering to include these currencies. Our focus continues to be on providing maximum capital and margin efficiencies for the market, and this latest extension is another example of LCH partnering with our customers to extend our cleared product set.”

Akant Set to Retire From BNP Paribas AM

Adnan Akant has announced his retirement from BNP Paribas Asset Management (BNPP AM), where he was head of currencies, based in New York.In this role he was responsible for currency alpha and overlay portfolios, as well as the currency portion of global/international portfolios. Akant had been with the firm for 35 years, having originally been with Fischer Francis Trees & Watts (FFTW), a predecessor of BNPP AM. Prior to joining FFTW in 1984, Akant managed the World Bank’s liquidity portfolio and advised the treasurer on the bank’s multi-currency borrowing program. He holds a PhD in Systems Science, an MS in Finance, as well as BS and MS degrees in Electrical Engineering and Computer Science from MIT. He is also a member of the New York Academy of Science and Sigma Xi, the Scientific Research Society.

Currencies Offer a Bright Spot for CTAs

Currency trading was one of the few bright spots for CTA performance last year, according to new data from BarclayHedge, now a division of Backstop Solutions.While the Barclay CTA Index was down 2.85% for 2018, the Currency Traders Index was up 5.1% for the year, and the Discretionary Traders Index gained 2.01%.These, however, were the only two indices to post positive returns for the year.
Indices posting losses on the year were led by the Cryptocurrency Traders Index, which was down 63.24% through December. The MPI Barclay Elite Systematic Traders Index was down 5.12% for the year, the Diversified Traders Index declined 4.71%, the Systematic Traders Index dropped 4.16%, the Fin./Met. Traders Index was down 3.20%, and the Agricultural Traders Index was down 0.27%.

Spring Time for Hedge Funds?

Hedge funds have been much maligned post-financial crisis due a perceived lack of performance. Is this criticism fair? And what is the prognosis for currency funds in particular? Galen Stops takes a look.

Earlier this year, Cliff Asness, founder, managing principal and CIO of AQR, published an excellent piece explaining why hedge fund returns should not be compared to 100% long equities returns, as they so often are when people use the S&P 500 as a benchmark.

In the article, Asness was unequivocal in his conclusion that hedge funds not keeping up with equities during a nine-year bull market was completely predictable and is certainly not a reason to worry about the performance of these firms.

CTAs Continue to Struggle in June

Managed futures traders lost -0.98% in June, according to the Barclay CTA Index compiled by BarclayHedge.

This was the largest monthly decline so far this year as the index is down -1.65% through the first two quarters of 2017.

The BTOP50 Index, which tracks the 50 largest investable CTAs, also fell, registering a loss of -2.60% in June, and is down -4.77% for the year as well.

“The first half of 2017 has been difficult for the CTA industry,” says Sol Waksman, founder and president of BarclayHedge. “The combination of low volatility and sharp trend reversals has helped to suppress returns for managed futures.”

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 […]

TradAir Inks Deal with Singapore-Based Firm

TradAir, a front office technology provider, has signed a contract to supply UOB Bullion and Futures (UOBBF) with its platform for trading leveraged FX, non-deliverable forwards and precious metals. UOBBF is the Singapore-based brokerage arm of United Overseas Bank Limited. “The platform provides UOBBF’s clients with access to deep levels of FX liquidity, sourced from […]

Mexican Peso May Lag Peers: Survey

The Mexican peso is expected to underperform most of its peers in the emerging markets, according to a survey of FX corporate and sales executives, traders and strategists attending Bloomberg’s FX16 Symposium found. Out of more than 120 respondents, some 57% said that “the peso (MXN) will continue to lag against its emerging market counterparts […]

TradAir Inks Deal with Singapore-Based Firm

TradAir, a front office technology provider, has signed a contract to supply UOB Bullion and Futures (UOBBF) with its platform for trading leveraged FX, non-deliverable forwards and precious metals.   UOBBF is the Singapore-based brokerage arm of United Overseas Bank Limited.   “The platform provides UOBBF’s clients with access to deep levels of FX liquidity, […]