A new report from Greenwich Associates warns that, if taken too far, distributed ledger technology (DLT) could reintroduce problems financial markets have been working to alleviate for more than 500 years. DLT has been touted as a means of creating new efficiencies in a number of different areas within the financial system, one of which […]
Tag: Greenwich Associates
A new report from Greenwich Associates argues that the incoming Uncleared Margin Rules (UMR) will fundamentally change the economics of OTC FX options trading to a point where buy side firms will increasingly trade these products on listed exchanges. “Historically, most FX options trading was done over the counter, but UMR has the potential to […]
Traditional “long-only” investors are joining quantitative early-adopters in using alternative data to achieve investment alpha, according to a new study from Greenwich Associates. Nearly half of investment managers that participated in the study said that they use alternative data, with another quarter planning to do so in the next 12 months. Meanwhile, the study shows […]
A new report from research group Greenwich Associates says that the focus of e-trading efforts in financial markets is switching away from mature markets like FX and into high yield bonds and cash equities.
In its latest report, From FX to High-Yield Bonds: Global Electronic Trading Update, Greenwich’s head of research, Kevin McPartland, says that the main action has shifted to new frontiers like high-yield bonds and those changing at the hands of new regulations like cash equities, where the impacts of MiFID II and advances in automated trading technology have triggered a surge in e-trading.
The financial services industry is spending about $1.7 billion per year on blockchain, according to a new report by Greenwich Associates.
The report, based on 200 interviews with market participants covering blockchain budgets, team sizes, use case exploration, key challenges and other issues, concludes that banks and other firms are moving beyond the proof-of-concept stage and starting to roll out commercial distributed ledger technology (DLT) products.
The study results show that blockchain budgets increased 67% last year, with one in 10 of the banks and other companies now reporting blockchain budgets in excess of $10 million.
Greenwich Associates has hired Ken Monahan as a senior analyst in the firm’s market structure and technology group, where he will cover FX, listed derivatives and fixed income, among other topics.
Prior to joining, Monahan worked as the principal at Vizier, an independent consultancy specialising in market structure and business development that he founded in 2010.
Before that, Monahan was at Deutsche Bank where, after starting in New York as a trader on the bank’s institutional derivatives desk, he moved into market structure, working with the International Securities Exchange (ISE) to launch the first all-electronic US options exchange.
A new report from Greenwich Associates sees algorithmic execution becoming “increasingly popular” among FX traders and argues that traders currently not using the strategies, “may soon have to determine whether they’re putting themselves at a disadvantage by not leveraging all the available tools to achieve the best outcomes for their institution and clients.”
The report does observe that many buy side traders remain reluctant to opt for fee-based execution, although it argues that those that have used algos have discovered that their overall execution costs have dropped “meaningfully”.
A study published by Greenwich Associates looking at the costs associated with trading FX futures and cash OTC FX products argues that some buy side traders can achieve “significant” savings by using futures over cash.
The firm says it employed a proprietary quantitative model, which calculates the cost of opening, maintaining and closing out a position. To validate key inputs into the model and gather feedback on current demand and pricing, Greenwich says it spoke with 51 FX traders on the buy and sell side.
The top five FX dealers are losing market share, according to a new report from Greenwich Associates.
Although the world’s five biggest FX dealers still capture a massive 44% of global market share in aggregate, according to the research, that proportion is down from 48% last year and from 53% in 2013.
The report identifies several trends that are driving these changes. It says that while top-tier dealers have been narrowing the scope of their product, regional and client coverage, FX investors continue to increase their trading via multi-dealer platforms, which create a more level playing field for liquidity providers.
New research from Greenwich Associates shows that long-term investors corporate end-users are turning to algorithms in FX trading. The report, Long-Term Investors Embrace FX Algos, shows how an increased focus on best execution and the growing use of transaction cost analysis (TCA) are fuelling the adoption of algorithms in FX markets. Greenwich says that FX algorithms are used by more than a third of the biggest institutional or “real money” fund managers active in global FX markets, and by almost a quarter of the biggest corporate FX traders.