The Swiss competition authority, the Competition Commission, has become the latest jurisdiction to levy fines on six banks related to their dealers’ activity in several chat rooms. COMCO says it has detected several anti-competitive arrangements between banks in foreign exchange spot trading and concluded “amicable” settlements and imposed fines of around CHF 90 million. Therefore, […]
Australia has become the latest location for a class action lawsuit against a group of banks with a law firm filing a cartel class action in the Australian Federal Court claiming the banks “systematically manipulated foreign exchange rates to boost profits at the expense of Australian businesses and investors”. In what has become a familiar […]
This year Profit & Loss decided to update the format and judging categories of our annual Digital FX Awards. The process remains subjective but we have not restricted ourselves to the narrow confines of previous years’ categories. Instead of many of the categories, we have created Awards for Excellence in e-FX, something that we believe […]
Post Trade We have expounded long and in detail in the Multi Asset Class Platform Award about the all round excellence of Neo, but we cannot, and should not, forget the ongoing powerhouse that is the UBS post-trade initiative. Just as the evolution of the Neo platform has been described by us as a journey, […]
P&L Report Card For a few years now, there has been a sense that regulatory reform – not least in the capital adequacy space, had destroyed the dream of the banks to build a world-class multi-asset, single-dealer platform. With trading being pushed towards regulated entities and banks reluctant to allocate more capital to underperforming businesses, […]
Mike du Plessis has left his position as global head of exchange traded derivatives (ETD), macro execution, at UBS.Based in New York, du Plessis had been with UBS since 2010. Before that he spent three years as managing director, European head of fixed income listed derivatives, at Deutsche Bank.Between 2002 and 2007, du Plessis was a partner at Cube Financial, which was acquired by Societe Generale. He has also worked at Lehman Brothers, Industrial Bank of Japan and NatWest Markets in a career in financial services that stretches back to 1992.A spokesperson for UBS declined to comment on the departure of du Plessis.
In terms of volumes, Cboe FX indisputably had a great year in 2018. It’s average daily volume for the year was $37.4 billion, it’s highest ever recorded and a 27% increase from 2017. Breaking down this figure further, the ADV on the London matching engine doubled, there was a 35% increase in trading activity during European or Asian hours, CNH trading on the platform doubled to become the sixth most actively traded currency on the platform and there was good growth in its full amount offering which accounted for $3.5 billion in Q4 of 2018, up 600% year-on-year. Discussing what prompted such an uptick in trading activity, senior staff at Cboe FX point to investments in technology and infrastructure that occurred in 2017, in addition to the fact that the full amount platform was re-built in 2018.
Gaurav Malhotra has joined Barclays in Singapore as director with responsibility for the e-FX business in the Asia Pacific region, Profit & Loss understands.
The move represents a return to the firm for Malhotra who worked for Barclays for six years, latterly as head of e-FX spot trading for Asia Pacific, before moving to UBS in Singapore. Having spent more than seven years at UBS, Malhotra left the Swiss bank earlier this year to return to Barclays. The move continues Barclays’ FX build out.
Equities analysts at UBS have issued a research report on the merger between CME Group and NEX Group, stating that while they are confident in the potential upsides to this deal, the benefits might not start to materialise for at least a year.
Having previously downgraded CME shares from “Buy” to “Neutral”, the UBS analysts Alex Kramm and John Goode decided to maintain the current rating, with an unchanged 12-month price target of $204 per share. At the time the report was issued, CME shares were trading at $189.51.
Cboe FX announces today that UBS is acting as a Central Credit Intermediary (CCI) for certain counterparties wanting to access its platform, with an eye to bringing on more liquidity from regional banks.
Under the new arrangement, regional banks or other financial institutions that might have limited bilateral credit can leverage UBS as a spot FX intermediary to alleviate this hurdle, settling all trades exclusively with UBS. The potential benefit of this for these institutions, according to the exchange, is that they will gain exposure to a greater number of Cboe FX participants despite the absence of direct credit relationships.