Looking at the geographical distribution of OTC FX turnover, Galen Stops sees some areas of competition emerging amongst different trading centres, but argues that it will be a long time before we see the outcome of any moves being made now. It will have come as no surprise that the data from the Bank for […]
Tag: Hong Kong
Hong Kong Exchanges and Clearing (HKEX) has made a proposal to the board of the London Stock Exchange Group (LSEG) to combine the two companies in a deal worth £31.6 billion. This deal would scupper the proposed $27 billion deal for LSEG to buy Refinitiv. “LSEG and HKEX are two of the world’s premier market […]
The Bank for International Settlements (BIS) has announced plans to establish an innovation hub to “foster international collaboration on innovative financial technology within the central banking community complementing the already well established cooperation within the existing committees”. The role of the BIS Innovation Hub will be, the bank says, to identify and develop in-depth insights […]
The latest round of FX turnover data from a group of the world’s FX Committees show that volumes dipped slightly in October 2018 compared to April last year when they hit a new high mark. Average daily reported UK FX turnover was $2.6 trillion per day in October 2018. Although this is the third largest turnover figure on record, it represents a 4% decrease from the record high of $2.7 trillion reported in April 2018. Turnover by instrument was mixed in the UK. Spot increased for the third successive reporting period, gaining 3% compared to April 2018 to reach $775 billion traded per day. This represents a 14.5% year-on-year increase in volume.
Traiana is now providing direct central clearing connectivity to the Hong Kong Exchanges and Clearing’s (HKEX) OTC Clearing Hong Kong (OTC Clear).Market participants can now access HKEX’s OTC Clear service to clear USD/CNH and USD/HKD FX forward and swaps, via Traiana’s Clearing Hub (CCP Connect), which provides affirmation, matching and trade processing.The OTC Clear deliverable FX service can be used to mitigate settlement risk that arises when payments and receipts of currencies occur at different intervals during a standard bilateral settlement process. The service can also be used to offset settlement exposure with its clearing house cross currency swaps service.
Ethernet, cloud and hosting provider, BSO, has added Singapore and Hong Kong to its FX circuit, citing growing demand for fast and reliable access to trade currency derivatives in emerging markets as the reason for the expansion.
The new routes, built on top of BSO’s London-New York-Tokyo circuit, will enable market makers using the BSO network to trade currency derivatives up to 10 milliseconds faster than before.
The new circuit includes improved latency and more diverse paths between London and Singapore, as well as a new trans-Pacific route for firms looking to trade between New York and Hong Kong. BSO says that it has also optimised its London-Tokyo link to the lowest latency available on the market.
FinTech, and in particular blockchain technology, is set to significantly change how banks operate, according to John Tsang, financial secretary for the Government of Hong Kong SAR.
However, speaking at a Fintech briefing in New York today, he warned that some banks are ill-prepared for the changes that will be driven by this new technology.
“Most of the bankers that I know are the people that are least prepared to deal with FinTech, they have no idea what blockchain is and blockchain is going to change their lives. They might not have a job, to put it in a more brutal way,” he said.
LCH has added Hong Kong to the centres in which it can offer clearing services.
OTC Clearing Hong Kong Limited (OTC Clear), a subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), has received regulatory approval to clear cross currency swaps. Following the approval, granted by the Securities and Futures Commission, OTC Clear says that it expects to launch the service in August of this year, OTC Clear will initially […]