Tag: WMR Fix

WMR Fix

Is Big Brother Watching You?

Galen Stops looks at how chat room activity is being monitored and controlled following recent collusion scandals.

“I’ve talked to hundreds of firms across the world and I haven’t yet met any that haven’t put requirements around information control, policy and security at the top of their agenda, it’s the first thing that comes to their minds,” says David Gurle, founder and CEO of Symphony, a cloud-based communications service provider.

This focus around information control and security is perhaps unsurprising given the events of recent years, in which financial institutions have been forced to shell out billions of dollars in fines relating to accusations of collusion to manipulate the Libor and WMR Fix benchmarks.

WM Fix Trading Still Predictable, But Less So: Pragma

New research by Pragma Trading shows that while the situation has eased, there is still a degree of predictability around the direction of the London 4pm WM/Reuters Fix.
In research last year, Pragma showed that the widespread use of TWAP (trade weighted average price) algorithms by executing agents during the Fix, had led to predictable trading patterns that were not only observable but also tradable, however it now says that the momentum pattern has “deteriorated to the point it provides no value”.