Tag: e-FX


Sada-Paz Exits BAML?

Market sources tell Profit & Loss that Mauricio Sada-Paz, EMEA head of e-FICC and global head of e-FX sales at Bank of America Merrill Lynch, has left the bank.
The sources say that he is joining Barclays in London as global head of e-FICC distribution.
Sada-Paz joined Bank of America in 2010 from Goldman Sachs, where he spent 10 years, in the FX business, culminating in him running the Iberian sales business.

Why Technology is a “Game Changer” for Regional Banks

Dan Torrey, global head of FX e-commerce sales at Northern Trust, explains how technology can help revolutionise regional banks’ e-FX businesses.

Torrey concedes that, prior to joining Northern Trust, he had been uncertain about whether or not claims that the increasing availability of technology is helping to democratise the FX markets were accurate.

However, he says that his own experience in building out Northern Trust’s e-commerce business has convinced him that these claims are not overblown.

“What’s happened is that through the technology, being able to bring in house better e-commerce pricing, being able to reduce a lot of latency, being able to expand the pairs in which we’re competitive and then to provide that downstream to our customers, means that we’re not just another custodial bank offering to them, we can actually competitively go after third-party accounts where we couldn’t’ get them before,” says Torrey.

Indian Public Sector Firms Adopt FXGO

Bloomberg is reporting growing penetration of the Indian market, with corporations such as Gas Authority of India (GAIL), Rural Electrification Corporation (REC) and ONGC Videsh (OVL) adopting its e-FX platform, FXGO.

GAIL is the largest state-owned natural gas processing and distribution company in India, REC is a leading public infrastructure finance company in India’s power sector and OVL is India’s second largest oil company.

The corporate treasury desks at GAIL, REC and OVL are using Bloomberg FXGO to analyse trade ideas, request quotes, execute, and perform post trade analysis, all on a single electronic platform.

Taylor Exits JPM – Another Big BNYM Hire?

Market sources tell Profit & Loss that James Taylor, executive director at JP Morgan, has left the bank and is heading to BNY Mellon.
Taylor was most recently heading JPM’s macro fixed income market structure team, having shifted from his role as head of international rates execution services at the bank. Taylor joined JP Morgan in 2009 as head of e-FICC sales for Europe, having moved from a similar role at Deutsche Bank. Prior to Deutsche, Taylor was on the e-FX sales team at Barclays.

P&L’s One to Watch in 2017

P&L Report Card: A good indication of how much longer the development cycle is can be found in our assertion last year that in terms of institutions to watch in 2016-17, it could be a vintage year. It wasn’t. The impact of regulatory compliance dominated the scene to such an extent that few, if any, banks made a serious move forward over the past 12 months. Being the eternal optimists that we are, however, we feel that this time next year could be very different, not least because we have been given a few insights into plans for 2017-18 and some of them are quite exciting.

Algo Provider of the Year

P&L Report Card: There is something of a paradox in how the algo execution space has become much more competitive in terms of providers, but the overall take up – while it ticked higher last year – remains subdued. There is so much emphasis on best execution, liquidity management and analytics – most of which falls to the algo execution teams to deliver – that one senses it is only a matter of time before demand surges. If it doesn’t, there is a lot of client facing technology to be accounted for, of course, but it should always be remembered that a lot of the client facing ideas that we see in the market have also driven upgrades in banks’ own ability to participate in FX markets.

Client Experience Award

P&L Report Card: These awards cover most aspects of the client experience when it comes to the various e-services and products on offer, indeed a read back through 15 years shows how the categories have changed to reflect the changing demands of the client base and, sometimes in the short term, new areas of competition. It is now two years since we started polling users on the overall experience and what they liked and disliked about a platform and we continue to be grateful that the reaction to the award was positive. The Client Experience Award really represents the core ethos of these awards – how good is the overall experience for someone using these platforms?

Best Research Platform

P&L Report Card: The next 18 months are going to be interesting for the banks’ research teams, not only do they have a rather erratic geopolitical situation to deal with, but they are also firmly in the firing line over MiFID II. Post-January 1, 2018 will be the time when we learn a lot more about how important clients actually think research is, and while paying for research is only a small part of the regulation, it will have a large impact on this segment of the FX business.

We have noted previously that the more in-depth reports are lightly read – partly this is a question of time, and partly it is a question of the value of such reports.

Market View Award

P&L Report Card: This is the second year for this award, one that reflects the continued interest around understanding execution quality. While we look at the overall experience in our Best Execution Award, a crucial element in any client’s experience, especially in event-driven markets where liquidity can be sporadic, is the pretrade functionality, which is where we focus this award.

The past year has seen more clients understand the critical importance of the decision-making process, specifically when and how to execute that crucial hedge, or how to get into that position without tipping the world off to what you are doing (it can also work the same on the way out!) The changing nature of markets also makes the liquidity view important.

Best FX Prime Brokerage

P&L Report Card: Did anything happen in the prime brokerage space last year? For the second year in a row, developments in this field were few and far between, which probably indicates the focus on making sure risk systems are fully up to scratch on the part of providers. It obviously started with SNB Day, but has continued with a few further market events, and as a result the major PBs have not only continued to cut some of the tail risk among their client bases, but they have increased their monitoring of existing clients as well.