Tag: Risk

Risk

Traiana Offers FXPBs Additional Risk Control

Traiana has made changes to its Credit Risk Hub that will enable FX prime brokers (FXPBs) to define trade information in more detail in order to increase credit risk controls and reduce the risks of credit over-allocation. Traiana’s Credit Risk Hub comprises two services; Designation Notice Manager (DNM), which helps FXPBs establish, monitor, amend and […]

Exclusive: 360T Looks to Drag FX Swaps Trading into the 21st Century

As 360T prepares to go live with a new electronic marketplace for banks trading FX swaps, Galen Stops takes a look at the details behind the launch. “There’s been zero innovation in the FX swaps space for 20 years,” Simon Jones, chief growth officer at 360T, tells Profit & Loss. “So we decided last year […]

New Goldman Sachs Algo Offers Basket FX Trading

Goldman Sachs has launched a Basket Algo, which gives clients the ability to take numerous FX trades and then trade them as a basket.“The launch of this algo came from really recognising the pinch points of clients’ workflows and understanding what they’re trying to achieve,” David Wilkins, global head of e-FX sales at Goldman Sachs, tells Profit & Loss. “And I want to make it very clear: this is not any kind of simple trade batch uploader. Indeed, we think this is an entirely new way to trade FX.”The essential thesis behind the algo is that deeper examination of client workflows and trading activity shows that although these firms tend to execute trades on an individual basis, in many cases, they don’t need to be, and it would in fact be cheaper and more efficient for them to instead execute them as a basket.

CME FX Link One Year On – Progress But More to Come

March 25 marks the one year anniversary of the launch of CME’s FX Link, probably the most significant attempt by a market intermediary to establish a bridge between OTC and futures markets. In terms of volumes, as expected the growth has been steady rather than spectacular, although FX Link did hit a new record high on March 7 at just under $2.7 billion notional. Generally speaking the platform is handling average daily volumes in the region of $1-1.5 billion in 2019.

And Another Thing…

After a good January, March is shaping up to be, much like February, a pretty ropey month for many in the foreign exchange industry, and this is manifesting itself in the form an increasingly louder debate about the lack of volatility. I saw this week one publication suggesting that FX markets need “a proper crisis” to get things moving, but I am not even convinced that will do it. The sad reality for those seeking livelier markets is that this is probably your new ‘normal’.

Flow Traders: Standing Out from the Crowd

Robbert Sijbrandij, head of FX at Flow Traders, talks to Galen Stops about why he thinks there’s still room for more non-bank liquidity providers in the FX market.Dutch proprietary trading firm, Flow Traders, has spent the past two years building out its FX business line. The firm trades in the region of €750- €800 billion of ETFs per year, of which roughly two-thirds has an FX angle, meaning that Flow Traders was already doing in the region of €2-3 billion of FX on a busy day before they decided to become a liquidity maker in FX.

Flow Traders: Standing Out from the Crowd

Robbert Sijbrandij, head of FX at Flow Traders, talks to Galen Stops about why he thinks there’s still room for more non-bank liquidity providers in the FX market.Dutch proprietary trading firm, Flow Traders, has spent the past two years building out its FX business line. The firm trades in the region of €750- €800 billion of ETFs per year, of which roughly two-thirds has an FX angle, meaning that Flow Traders was already doing in the region of €2-3 billion of FX on a busy day before they decided to become a liquidity maker in FX.

In the FICC of It

With P&L’s editor Galen Stops showing his contempt for the listenership by declining to call in to the podcast from halfway down a black run on a snowboard, this week’s In the FICC of It takes a look back as managing editor Colin Lambert is joined by P&L’s founder Julie Ros, just over 20 years to the day she incorporated Profit & Loss.
Although they somehow manage to omit to mention how they wrote pieces for the magazine about Caribbean and Scottish holidays and, even worse, took their own cover pictures, the two look back to the early days of e-FX, which coincided with the launch of Profit & Loss, and look at how things have changed – and in some cases have not.
The names of the leaders in e-FX may have changed, as Ros notes, but our two podcasters agree that there is much that remains the same, in both the single and multi-dealer platform world especially.
One week after Stops and Lambert went to town on each other’s predictions for 2019, Ros offers Lambert to chance to critique someone else’s predictions for the foreign exchange industry, made in 2000, and you will glad to hear that in spite of the aforementioned clairvoyant going onto to become Prime Minister of his country, Lambert shows his customary disregard for rank and gives it both barrels…

Refinitiv: Cost and Risk, Cost and Risk

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.

FICC Markets Group Issues Best Practice Guidelines

The FICC Markets Standards Board (FMSB) has published the final version of its Statement of Good Practice (SGP) on Suspicious Transaction and Order Reporting.The FMSB is an independent body set up by market practitioners to try and improve standards of conduct in wholesale FICC markets. It aims to bring transparency to grey areas in the wholesale FICC markets by identifying emerging vulnerabilities, clarifying and documenting practice and agreeing standards to improve conduct and market behaviour. Setting up the FMSB was one of the main recommendations to emerge from the Fair and Effective Markets Review (FEMR), which was conducted by HM Treasury, the Bank of England and the Financial Conduct Authority (FCA).