In conjunction with CLS Group and Japanese bank MUFG, Mosaic Smart Data is launching FXLiquidity, a new analysis service that looks at liquidity levels in foreign exchange markets and aims to provide the FX market FX market with transparency as the market continues to experience high levels of volatility. The data offers graphical views of […]
Tag: FX liquidity
Sponsored Editorial with smartTrade Technologies’ CEO David Vincent 1) What are the key challenges facing liquidity providers in these highly volatile and illiquid markets? The Foreign Exchange market has experienced low volatility for quite some time, however since the COVID-19 pandemic arrival in Europe in mid-February, we have observed the return of high volatility. One […]
Colin Lambert reviews a new paper from the Bank for International Settlements’ Monetary and Economic Department, which suggests the direct links between liquidity conditions in FX spot and swaps markets are getting stronger – and that regulation is having a serious impact on the FX market’s functioning. At face value, the phrases “…the pricing of […]
The latest Bank for International Settlements (BIS) Quarterly Review provides execution method data relating to the recent Triennial Survey of FX Turnover and finds that while e-ratios generally are stable there have been some significant shifts in the channels handling the volume. Perhaps significantly, the report also picks up on what the authors says are […]
This week’s In the FICC of It podcast is an emotional rollercoaster, containing euphoria, resignations and emotional pleas for clemency as Colin Lambert and Galen Stops discuss key themes from the last two conferences of the year at Profit & Loss, in Singapore and Hong Kong. Reflecting upon some really interesting (and different) perspectives on […]
I am flying to Singapore and then Hong Kong for our two Asian conferences this week, so this will necessarily be relatively brief – what does the British electorate have in store for us this time and will this UK general election, like so many other votes recently, leave the pollsters with egg on their […]
I noticed that an old favourite turned up in the news cycle last week – indeed I suspect it is moving into the market’s general psyche given more people are talking to me about it – and that is peer-to-peer matching, more specifically asset managers seeking to by-pass the banks because the latter are able […]
I have always been someone who has, in FX trading at least, looked at certain firms’ desperation to shave another millisecond off round trip times with some despair and no little disdain. Obviously trading has got faster, that is inevitable in such a technologically-innovative era, but I have always looked at the speed issue single dimensionally – it was about people with a technology advantage exploiting it. I wonder, though, whether circumstances are pointing in the direction of a new effort to shave time off the trading process?
The survey published last week by JP Morgan had liquidity as its customers’ number one concern, which, as P&L’s editor Galen Stops and I observe in this week’s podcast, kind of gives lie to the regular protestations from speakers at events that FX liquidity is plentiful. Some of the reasons for liquidity thinning out, people trying to jump on a trend for example, are understandable, but there is one that interests me – and that is the impact of best execution policies.
Scepticism abounds in this week’s In the FICC of It podcast as Colin Lambert and Galen Stops take a look at the latest bank to unveil a digital markets strategy – including all your favourite buzzwords. While Stops believes this is the latest move in what will be a growing trend, our podcasters also wonder whether it’s not really just a rebranding exercise?
They then move into more traditional areas and discuss JP Morgan’s survey on FX market conditions, and while they agree with a lot of the findings, there are one or two areas that raise an eyebrow, not least around internalisation and AI.
AI-generated trading and liquidity are also the forefront as they move on to share their thoughts around the flash crash in Jardine Matheson stock last week in Singapore, including asking the question, what does it mean for market maker programmes and certain order types?
The discussion then moves on to look at the latest FX turnover surveys from the world’s FX committees, with particular attention on three interesting/puzzling (delete as appropriate) elements of the UK report surrounding RMB, NDFs and voice brokers.
The podcast ends on with Lambert praising “the optimism of youth” after Stops highlights what he thinks could be a very important line at the end of the latest document detailing an FX-related fine in the US – in other words, the cynic in him won the day!