Swift has issued a report arguing in favour of greater standardisation of messaging within the FX market, claiming that this will in turn cause greater automation and improve efficiency. In the report, Swift notes that the sheer volume of FX transactions that occur daily makes automation in this market challenging. “With millions of confirmation messages […]
Kooltra has launched a new platform, called FXCore, which designed to fast-track the entry of new broker participants into the FX market. In a release issued today Kooltra, which provides an integrated back and middle office SaaS system for institutional customers, says the platform will advance back office technology for FX trading which, it says, […]
Have we finally hit the wall in terms of our willingness, as a broad financial markets industry, to accept the continued race to cut a few microseconds off the speed of trading? I suspect we may have, for as P&L editor Galen Stops’ articles on speed bumps in the listed derivative world have highlighted, this […]
Barclays has added equities to BARX and announced that it will now function as the bank’s cross-asset electronic trading platform. Prior to this, clients could trade FX, fixed income and futures on the BARX platform. “We are excited to announce that BARX will be our newly integrated, cross-asset electronic trading platform that will continually innovate […]
Ahead of the unveiling of the 2019 Digital FX Awards for bank single dealer platforms tonight, Colin Lambert, managing editor of Profit & Loss, sat down with John Ashworth, CEO of Caplin Systems, for a special In the FICC of It podcast, sponsored by Caplin Systems. In this special our two podcasters looks at the […]
Here are three statements. “Fragmentation exacerbates the already inherent challenge – adequate liquidity – and increases market fragility as a result.” “Fragmentation leads to smaller, disconnected liquidity pools and less efficient and more volatile pricing.” “Divided markets are more brittle, with shallower liquidity, posing a risk of failure in times of economic stress or crisis.” […]
A new research note from CME Group looks at whether FX options skews can be used to predict where certain currencies will move relative to the US dollar.Written by Erik Norland, executive director and senior economist at CME, the research opens by explaining that options markets typically exhibit a skew, but that in different asset classes this skew can be in different directions.For example, Norland points out that out-of-the-money (OTM) put options on equity index futures are usually more expensive than OTM call options because investors fear a sudden decline in stock prices more than a sudden rise. However, the reverse is generally true for options on agriculture products because food buyers are more concerned with a sudden increase in the price of crops rather than a decline.
The average daily volume (ADV) of FX traded on Swap Execution Facilities (SEFs) in February was $56.2 billion, down 8.2% month-on-month and down 5% year-on-year.Tullett Prebon was the most used SEF for FX trading last month with an ADV of $17.5 billion. It was followed by BGC, Tradition and GFI, which recorded ADVs of $11.7 billion, $10 billion and $9.8 billion, respectively.After this, the ADV figures trail off rapidly, with NEX, TRSEF and Bloomberg recording $4 billion, $1.7 billion and $1.2 billion, respectively, and all of the other SEFs reporting an average of less than $150 million per day of FX trading on their platforms.
BNP Paribas today announces the launch of the BNP Paribas MGI Systematic Currency Alpha Index using artificial intelligence through machine learning. The index, created by BNP Paribas in partnership with Millennium Global Investments (MGI), went live in Q1 2019.MGI provides systematic FX signals to BNP Paribas, determining the long or short exposure to four liquid currency pairs selected to represent the global FX market (USD/GBP, USD/EUR, USD/AUD and USD/JPY). In a statement, the firms say the Index can be considered as a new frontier for investors seeking cross-asset portfolio diversification, as it is enhanced by signals generated by an artificial intelligence model that uses machine learning to identify the dominant factors driving the performance of currency pairs each day.
Dan Torrey has joined OTC digital currency trading firm, Genesis Global Trading, in New York as head of institutional sales. He reports directly to Michael Moro, CEO.Torrey was most recently at Northern Trust, which he joined in mid-2016 as global head of FX e-commerce sales. Prior to that, he was briefly with ParFX, where he was head of FX sales for North America.The bulk of Torrey’s career was spent at EBS, where he spent 11 years in a variety of sales roles, culminating in his appointment as head of sales for the Americas.