Is it time to really start to get worried about the primary FX venues? I have written before about the decline in volumes at these venues but one could be forgiven for thinking the decline is now becoming a little precipitate. Both Refinitiv and EBS reported their lowest spot ADV since they started reporting (so […]
I think it is fair to say that the London Stock Exchange Group was the dark horse in the chase to buy Refinitiv, after all, LSEG has a long and no-so-proud history when it comes to M&A – over the years it has been mentioned as a buyer of Icap, NEX Group and Deutsche Borse, […]
Refinitiv has migrated its spot and forward matching to a new primary data centre, Equinix Slough LD4, with Equinix New Jersey NY4 as the secondary centre. The firm says the enhancements significantly improve market data feed and round trip latency for clients while subsequently reducing complexity and cost in connecting to Spot Matching. Furthermore, it adds, […]
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 […]
2018 was undoubtedly a transitional year for Refinitiv. In the first half of the year, the firm was finishing off big initiatives that were started in 2017 – although everything was all ready internally for the MiFID II deadline on January 3 there were subsequent client enhancement requests to work through, while Matching was re-platformed and moved into the Equinix LD4 data centre in London. Meanwhile, in the second half of the year, the focus shifted onto new initiatives: announcing plans to launch an analytics suite and making more algos available to clients on FXall. Of course, the obvious transition for the firm was being rebranded as Refinitiv from Thomson Reuters’ Financial & Risk (F&R) after a consortium led by private equity firm Blackstone agreed a deal to acquire 55% of the business.
Refinitiv is enhancing the WM/Reuters Thai Baht Spot FX Benchmarks with data sourced from Matching, the firm’s anonymous central limit order book. This has allowed the Thai baht (THB) and Thai baht offshore (TOF) benchmarks to become ‘trade’ currencies using the WM/Reuters Trade Methodology. This change was launched on 1 October 2018 and is available now, the firm says.
Previously, the THB/TOF benchmarks were calculated from indicative interbank quoted rates, provided by multiple financial institutions. Following analysis about the feasibility of introducing transactional data from the available FX trading platforms and a public consultation, Refinitiv says it found that the inclusion of data from Matching achieves the necessary requirements regarding sufficiency, quality and data hierarchy to evolve these benchmarks to become trade based.
Regular readers will know I am unsurprised to read reports of Blackstone pondering the sale of FXall once it completes its takeover of a majority stake in Thomson Reuters F&R, because (for once, I know, before you all message me) I predicted such a thing in this column in June.
What I find interesting in the latest production from the rumour mill is how it is only the sale of FXall – Matching and the other channels are not mentioned.
Paul Aston, CEO of Tixall Global Advisors, discusses the feasibility of peer-to-peer FX matching between large buy-side firms.
One of the long-standing problems with the concept of peer-to-peer matching between buy-side firms is that the probability of being able to actually put together complimentary buyers and sellers is very low. For example, the chances of a large asset manager needing to sell a certain amount of a particular currency at the exact same time that an insurance company needs to buy the same amount of that currency are remote.
Aston refers to the need to “get away from the quantum problem of having to know when something is available in time and level”, and suggests that there needs to be some form of “dark mechanism” whereby these buy-side firms can leave an order without it being exposed to the market, in order to make peer-to-peer trading more feasible.
Thomson Reuters has added 15 new currency pairs to its binary multicast feed for Matching.
Profit & Loss previously reported in October 2016 that the firm was planning to increase update frequencies for Matching real-time market data by up to 10 times to 25 milliseconds.
In phase one of the roll-out Thomson Reuters put USD/CAD, USD/SGD and EUR/USD pairs in the binary feed on May 21, 2017. Then on Sunday it launched phase two, adding the following 15 currency pairs: AUD/USD, AUD/NZD, NZD/USD, GBP/USD, EUR/GBP, EUR/DKK, EUR/NOK, EUR/SEK, NOK/SEK, USD/MXN, USD/CNH, USD/HKD, USD/JPY, USD/CHF and USD/RUB.