Tag: Spot

Spot

CME Group Set to Acquire NEX

CME Group is set to acquire NEX in a transaction valued at £10 per share, consisting of 500 pence in cash and 0.0444 CME Group shares.

The proposed transaction has been approved unanimously by the board of directors of both companies and is expected to close, pending approvals by regulators and NEX shareholders, in the second half of 2018.

“At a time when market participants are seeking ways to lower trading costs and manage risk more effectively, this acquisition will allow us to create significant value and efficiencies for our clients globally,” says CME Group chairman and CEO, Terry Duffy. “As one organisation, we will be able to employ the complementary strengths of each company to serve a wider client base while diversifying our combined businesses across futures, cash and OTC products and post-trade services.”

Built to Become Big

Galen Stops takes a look at how and why Aston Capital Management is planning to scale up following its recent $100m investment. 

Aston Capital Management recently received an injection of $100 million in AUM and an additional $5 million in seed operating capital from private investors.  Following this investment, the firm’s CEO Isaac Lieberman is, perhaps unsurprisingly, bullish about its future.

“We have a goal through our strategic mandate and product development timeline to have capacity to be managing $2 billion in AUM within two years and I can actually see us achieving this goal quickly as this business accelerates,” he says.

To help achieve this goal, Lieberman has deliberately been structuring the firm so that it can easily scale up in the future. For starters, the firm has been getting a whole slew of regulatory and accountancy registrations in place.

CLS Volumes Tick Up in November

The average daily volume (ADV) of trades submitted to CLS was $1.677 trillion in November, up 3.8% from the previous month and up 9.2% year-on-year.

This increase in volumes was largely driven by swaps trading. CLS reports an ADV of $1.149 trillion in swaps submitted last month, which represents a 5.4% increase from the $1.09 trillion submitted in October and a 22.6% increase on the $937 billion submitted in November 2016.

Meanwhile, the ADV for FX spot submitted to CLS was $439 billion in November, up 2.8% from the previous month, but down 14.6% year-on-year.

Forwards represented $89 billion of the total ADV submitted to CLS in November, down 10% from October but up 4.7% compared to November 2016.

Is the Stage Finally Set for FX Clearing?

Galen Stops takes a look at whether the predictions of FX moving towards a centrally cleared model might finally be coming true. 

Central clearing for FX has endured a number of false dawns in recent years. As long ago as 2011, Profit & Loss published an article, “FX Clearing – Are You Ready?” in which it was argued that Dodd-Frank was likely to drive FX options and NDFs products into clearing.

Then back in the first quarter 2014, staff at the US Commodity Futures Trading Commission (CFTC) indicated that the guidelines for the mandatory clearing of FX derivatives products, which included NDFs could be finalised within weeks. Indeed, Profit & Loss reported in mid-June 2014 that the CFTC was poised to fire the starting gun for mandatory FX clearing.

CLS Volumes Up Double Digits in September

The average daily traded volume submitted to CLS was $1.75 trillion in September, up 10.7% from $1.58 trillion in August 2017.

This increase is consistent with data that has already been reported by various FX platforms, which all showed a substantial increase in trading activity last month.

The ADV of swap activity submitted to CLS was $1.14 trillion in September, up 8% from August and up 16% compared to September 2016. The average daily traded volume submitted to CLS was $1.75 trillion in September, up 10.7% from $1.58 trillion in August 2017.

This increase is consistent with data that has already been reported by various FX platforms, which all showed a substantial increase in trading activity last month.

The ADV of swap activity submitted to CLS was $1.14 trillion in September, up 8% from August and up 16% compared to September 2016.

Thomson Reuters Also Enjoying September Uptick

Thomson Reuters (TR) is the latest FX platform to post strong September trading volumes, with figures released today showing that the average daily volume (ADV) of FX trading across all its platforms was $411 billion. 

This represents a 12% month-on-month (MoM) and a 12.6% year-on-year (YoY) increase in volumes. 

This total reflects trading volumes on Thomson Reuters Matching and FXall in all transaction types, including spot, forwards, swaps, options and non-deliverable forwards (NDFs). 

The volumes data on TR’s website only stretches back to January 2013, but this represents the highest overall ADV across all of its platforms since then. 

CLS Volumes Flat in August

Average daily volume (ADV) submitted to CLS was $1.58 trillion in August, down 1% from July.

CLS recorded an ADV of $1.05 trillion in swaps in August, up from $1.04 trillion the previous month.

Spot ADV submitted to CLS in July was $433 billion, down marginally from the $453 billion recorded in July.

The ADV of forwards products submitted to CLS last month was $96 billion, down from $101 billion in July.

Despite this month-on-month decrease, CLS volumes were up 14.8% year-on-year.

CLS Volumes Dip Slightly in July

The average daily volume (ADV) submitted to CLS was $1.6 trillion in July, down 2% month-on-month, but up 11.9% year-on-year.

CLS recorded an ADV of $1.04 trillion in swaps in July, down from $1.08 trillion the previous month.

Spot ADV submitted to CLS in July was $453 billion, basically flat from the $455 billion recorded in June.

The ADV of forwards products submitted to CLS last month was $101 billion, down from $108 billion in June.

However, year-on-year, forwards ADV in July was up 46%, while spot ADV was up 13.9%. By contrast, the spot ADV submitted to CLS in July 2016 was $446 billion, only 1.6% less than July 2017.

CLS Volumes Up in June

The average daily volume (ADV) of trades submitted to CLS was $1.64 trillion in June, up 6% from $1.55 trillion in May, and up 1.64% year-on-year.

The main driver of this growth appears to have been an increase in swaps and forward activity. Swaps accounted for $1.08 trillion of the ADV submitted to CLS in June, up 9.3% month-on-month and 7.5% year-on-year.

The ADV of $108 billion in FX forwards in June represented a 3.8% increase from the previous month and a 20% growth from June 2016, when an ADV of $90 billion was recorded.

CLS Volumes Tick Up in May

The average daily traded volume submitted to CLS was $1.55 trillion in May, up 2% from the previous month and up 10% year-on-year.

The CLS data shows FX spot ADV of $454 billion in May, up 4.4% compared to April and up 4.8% from May 2016.

Swap ADV, meanwhile, was $989 billion in May, which was flat on the previous month, but up 9% in comparison to the same month last year.

Although by far still the smallest product segment submitted to CLS in terms of ADV, FX forwards saw the biggest month-on-month and year-on-year increases in May.