Spoofing is a strange thing; some could argue it is part of a best execution policy when trying to fill a very large order, others that it is criminal activity, and both would have valid points – but is it fraud? I have no wish to get into the legal technicalities, especially around US law, […]
In the wake of the GFC and the allegations of misconduct aimed at institutions and individuals, the buzz word was ‘transparency’ – the word from market participants was that they were going to be transparent about everything, meanwhile regulators everywhere made a sustained push for absolute transparency in markets.
The thing is, in FX terms especially, it hasn’t worked – I am not convinced it has in any market actually – and market participants are showing this in where they put their business.
A Global Foreign Exchange Committee working group has released a paper on the role of disclosure and transparency in FX markets intended to serve as a source of information for market participants seeking to learn about, develop and navigate the FX disclosure landscape. The paper is the work of a special working group set up by the GFXC to study the issue after feedback on last look practices highlighted concerns amongst participants that disclosures and transparency levels could be enhanced.
In the Profit & Loss 2018 Digital FX Awards, Barclays was the winner of the “One to Watch in 2018” category and, looking back now at the end of the year, it seems that the bank might be on its way to justifying this decision.
After a couple of years during which there was a clear slowdown in terms of product development within Barclays’ e-FX franchise, the bank appears to be shifting onto the front foot again.
It has made a raft of senior appointments within its FX business this year, with Alex Shterenberg hired as global head of G10 and EM e-FX trading, Jeremy Monnier as a managing director, Fabio Madar as the global head of G10 FX trading and distribution, James Hassett as global head of EM macro trading, and Mauricio Sada-Paz as global head of e-FICC product and distribution.
There are so many lawsuits aimed at financial markets participants that it is hard to keep up these days, and while most are aimed at historic actions, there is definitely a culture building in which the first instinct of someone who feels they have been wronged is to head to the courts. This has to stop somewhere, for if it doesn’t there will be repercussions for the market structure. If you have a problem with a market, tell the operator and then tell the regulators – only after then do you hit the lawyers.
So what that yet another bank has issued a boilerplate last look disclosure? Well actually this typifies the culture of “adequate disclosure” that exists in foreign exchange markets at the moment. Yes, it is a step up from previous efforts, but is it enough to rebuild trust? The FX industry must continue working towards true transparency of action, but when it cannot even deliver a coherent message on the foundation stone of its rebuilding efforts, are we right to be sceptical of its efforts?
Credit Suisse has agreed to pay a $135 million fine as part of a consent order with the New York State Department of Financial Services (DFS) for violations of New York banking law, including improper efforts with other global banks, front-running client orders, and additional unlawful conduct that disadvantaged customers.
The violations stem from an investigation by DFS that determined that from at least 2008 to 2015, the bank “consistently engaged in unlawful, unsafe and unsound conduct by failing to implement effective controls over its foreign exchange business”.
Norway’s sovereign wealth fund, Norges Bank Investment Management, is calling for greater transparency and verifiability in FX markets because it believes that changes in the market structure in recent years has exacerbated the informational advantages enjoyed by dealers. It believes this change is required because it is the key to mitigating the impact of these informational advantages, without negatively affecting liquidity in what it describes as “this important market”. Inevitably, last look is involved, but the paper also highlights issues around algorithmic controls and liquidity provision.
The consolidated tape for FX launched by FastMatch today looks very different to the one initially proposed by its CEO, Dmitri Galinov. Galen Stops takes a look at what’s changed.
FastMatch has today announced plans to launch a consolidated tape for FX, something that its CEO, Dmitri Galinov, has been working towards for some time.
Profit & Loss previously reported on an earlier proposed iteration of this tape back in May 2016, but the one launched today looks significantly different.
Saxo Bank will launch a new order driven
execution model for FX products and CFDs on commodities and indices in
The key difference in the new order type is
that it will add Saxo’s own liquidity to the …