Articles tagged by Bloomberg
The Mexican peso is expected to underperform
most of its peers in the emerging markets, according to a survey of FX
corporate and sales executives, traders and strategists attending Bloomberg’s
FX16 Symposium found.
Out of more than 120 respondents, some
Any group’s reputation is dependent upon
its weakest link and as such the foreign exchange industry could be treading on
thin ice thanks to the apparent actions of one such “weak link”.
Sadly, we are back on the subject ...
Tradebook FX (TBFX), Bloomberg’s FX ECN, has reached an agreement with Citi for the bank to serve as a central clearing counterparty (CCP) on the platform.
“We feel that the combination of Citi’s expertise in FX, and FXPB in particular, and market leading role in foreign exchange globally, coupled with the wide network of Bloomberg clients will be very synergistic,” says Tom Murphy, head of FX, futures and equity options sales at Bloomberg Tradebook. Citi will be the second CCP on TBFX
George Harrington has left his role as the head of Bloomberg’s fixed income, currency and commodity (FICC) trading business (FICC).
In this New York-based position, he was responsible for overall strategy and delivery of the Bloomberg Fixed Income Trading (FIT) FIT and FXGO platforms.
Philip Cenatiempo, head of global markets at Bloomberg, will assume Harrington’s responsibilities.
Prior to this role, Harrington was head of product management for Bloomberg’s fixed income derivative trading business, overseeing single and multi-dealer execution services, clearing and legal execution services, and VCON – Bloomberg’s Voice trading network.
Bloomberg has launched executable streaming non-deliverable forwards (NDFs) on FXGO, its global foreign exchange trading platform.
Standard Chartered Bank (StanChart) will be the first liquidity provider to participate. Bloomberg says that the new offering will allow the bank to contribute executable pricing across a wide range of Asian and Latin American non-deliverable currencies to meet the needs of its corporate and institutional clients.
The solution integrates Bloomberg's FX execution and straight-through processing (STP) tools with StanChart’s liquidity. It’s designed to offer end-to-end workflow for NDF trading to the bank’s clients that wish to execute via the Bloomberg Terminal.
Bloomberg Tradebook has released a new cross-asset tool designed to enable firms to trade one security relative to a set benchmark.
In a release issued today, Bloomberg Tradebook claims that this Relative Benchmark Trading (RBT) algorithm will help traders using its PAIR (Pair) platform generate alpha, reduce the costs of trading and better manage risk.
It does this, the firm says, by enabling firms to leverage Bloomberg’s data to help them capture gains from the dynamic relative pricing of securities by tracking the performance of other instruments that drive the price of that stock.
Bloomberg has launched Canadian FX benchmark rates (BFIX) a week ahead of the Bank of Canada’s planned changes to the timing, frequency and calculation of the daily average rate for currencies against the Canadian dollar.
The central bank said these changes, due to go into effect on March 1, will reinforce the distinction between FX rate fixings used as benchmarks for transactional purposes and Bank of Canada exchange rates that are provided as a public good – for statistical, analytical and informational purposes only.
Bloomberg is continuing its push into China with the announcement that Haier Finance has adopted its FX electronic trading platform (FXGO) and Multi-Asset Risk System (MARS).
A subsidiary of the Chinese home appliance company Haier Group, Haier Finance provides financial services including deposits and loans, financial advisory, insurance and investment services. The firm officially adopted FXGO and MARS in the third quarter of 2016.
"Bloomberg's FX solutions have enhanced our efficiency by allowing us to streamline our workflow from front to back," says Zhang Bing, head of trading at Haier Finance.
Profit & Loss talks to Tod Van Name, Bloomberg's global head of FX and commodities electronic trading, about how technology is changing the way that corporate treasurers operate.
Profit & Loss: With a lot of global macro uncertainty anticipated for the year ahead, are corporate treasurers under more pressure when it comes to managing their FX exposures?
Tod Van Name: There’s no question that corporations are always considerate of market pressures, and while there haven’t been wild currency swings in the US, where the dollar has been strong and stable recently, for treasurers not in the US it has become a particularly big issue.
The biggest issue facing the Russian ruble in 2017 is the price of oil, according to a Bloomberg survey of FX executives released today.
Of those polled, the majority (or 51%), say oil prices will have the biggest effect on the currency, with 83% of the executives saying that they feel that the ruble will be more correlated to oil than emerging markets currencies this year.
Of less concern in relation to the ruble were Russian Central Bank policies and geopolitics, which only 22% said they were concerned about, and just 5% of respondents said that they are concerned about US interest rate hikes.
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.
Thomson Reuters (TR) and Symphony Communication Services have announced a partnership that will enable market participants to share information from Eikon such as charts, news and data via Symphony’s messaging and collaboration platform.
The integration is slated to be available later this year. Users who have both Thomson Reuters Eikon and Symphony will be able to share Eikon content directly through the Symphony messaging and collaboration platform. If the recipient also has Eikon, then they are able to share live data, news and charts to support dynamic, real-time collaboration. The integration will leverage both Eikon and Symphony open APIs.
Bloomberg is reporting growing penetration of the Indian market, with corporations such as Gas Authority of India (GAIL), Rural Electrification Corporation (REC) and ONGC Videsh (OVL) adopting its e-FX platform, FXGO.
GAIL is the largest state-owned natural gas processing and distribution company in India, REC is a leading public infrastructure finance company in India's power sector and OVL is India's second largest oil company.
The corporate treasury desks at GAIL, REC and OVL are using Bloomberg FXGO to analyse trade ideas, request quotes, execute, and perform post trade analysis, all on a single electronic platform.
ING is launching proprietary global emerging markets indices, aiming to provide clients with a new route for gaining exposure to emerging markets currencies.
Bloomberg is responsible for providing the independent calculation and administration of these indices. In addition to leveraging Bloomberg's expertise in strategy index development, calculation and administration, ING is using Bloomberg’s BFIX data source to use in the index, stating in a release issued today that it is an independent benchmark for currency rates that is regularly updated and widely used by the FX market.
Perhaps not a huge surprise, but business leaders and FX executives in India expect the rupee to be the top performing currency in 2017, according to a new Bloomberg survey.
The findings came from the Bloomberg India Economic Forum held on September 22 in Mumbai. In total, 100 people participated in the poll.
After the rupee, the respondents picked the US dollar, the euro and the British pound as the next three currencies likely to perform the best this year.
Bloomberg has signed a statement of commitment to the FX Global Code, pledging it will continue to support fair and robust FX markets worldwide.
The firm says it has long supported the creation and implementation of the Code, which was developed by a public/private body of central banks and diverse industry participants from multiple jurisdictions as a set of voluntary best practices and is aimed at all market participants engaged in the wholesale FX market.
"We endorse the FX Global Code and are committed to the highest levels of integrity and market practice," says Tod Van Name, Bloomberg's global head of FX electronic trading.
The North American Free Trade Agreement (NAFTA) is the top macroeconomic issue that will affect the Mexican peso this year, according to the results of a Bloomberg foreign exchange survey announced today.
After polling more than 100 financial professionals in Mexico, Bloomberg found that 46% said that NAFTA is the macroeconomic factor that will have the biggest impact on the peso.
Meanwhile, 34% of attendees said that the peso would be most affected by the presidential election on July 1.
A new survey from Bloomberg suggests that authorities in Mexico may face an uphill struggle when promoting the FX Global Code of Conduct amongst the local market.
In the survey, which Bloomberg says more than 100 financial professionals in Mexico participated in, 39% of respondents said that they will not endorse the Code. This is in comparison to 40% who said that they are reviewing the Code, 8% who said they have signed the letter of commitment to the Code’s principles and 12% that said they have implemented Code training.
"What the survey results tell us is that many people still do not understand what the FX Global Code of Conduct is and does," said Mariana Suarez, Bloomberg's Head of Sales for Mexico and Central America.
The Bankers Association of the Philippines (BAP) and Bloomberg have announced a series of new initiatives aimed at furthering the growth of the FX market in the Philippines.
The BAP has appointed Bloomberg as the new calculation agent for the USD/PHP spot reference rate. The spot reference rate is frequently used as a benchmark by onshore and offshore banks, corporations and asset managers in the Philippines for trade execution, valuation and benchmarking of portfolios.
"We are pleased to partner with Bloomberg to provide enhanced solutions to the FX community in the Philippines," says BAP's managing director, Benjamin Castillo. "These new initiatives will support the Bangko Sentral ng Pilipinas' (BSP) financial market development reforms to better organise and deepen the country's FX market. We look forward to execution efficiency, increased market liquidity and transparency leveraging Bloomberg's technology platform and industry best practices."
Bloomberg and Galaxy Digital Capital Management (GDCM), a digital asset management firm founded by Michael Novogratz, have launched the Bloomberg Galaxy Crypto Index (BGCI).
The index is designed to track the performance of the largest, most liquid portion of the cryptocurrency market. The BGCI is market capitalisation-weighted and measures the performance of 10 USD-traded cryptocurrencies, including bitcoin, ether, monero, ripple, and Zcash.
The index constituents are diversified across different categories of digital assets, including stores of value, mediums of exchange, smart contract protocols, and privacy assets.
Bloomberg FX fixing rates (BFIX) will be added to the NEX eFix Matching Service, which enables customers to execute fixing interest electronically via the EBS Market platform, the firms have announced.
The eFix Matching service was launched in 2014 as a central market utility for reducing benchmark fixing risk, NEX says that it has seen a growth of 25 percent API to 65 percent API execution since 2014, driven by the continued trend towards automation and a shift in the way banks manage client fixing orders.
We speak a lot about disruption in FX markets, but more often than not we focus on the trading piece of the puzzle. It is not only there that traditional models and values are being challenged, however, as was highlighted early in the Asian trading day today when news of three resignations from the UK government was reported.
It is not a new phenomenon, but this morning offered a dramatic and, for the incumbents, disturbing insight into the future when the Twitter-sphere had the news out well in advance of the traditional news wires.
In this week’s In the FICC of It podcast, Colin Lambert apologises to the English nation and Galen Stops talks about the needs of a millennial.
They also discuss the week’s news from the FX world including SGX launching futurised OTC products and LCH going live with deliverable FX options clearing, as well as deliberate upon how hedge fund performance is measured; US regulators’ attitudes to cryptocurrencies; and the latest blow to the desktop terminal industry. They close out with a quote from their favourite profession – the legal industry – which rather aptly reinforces something Colin Lambert has been saying for some years – and let’s face it, if he says enough at some stage a lawyer somewhere will have to agree, it’s the law of averages!
In case you missed some of the original coverage this week, you can catch up here:
SGX Launches “Futurised” OTC FX Product
LCH Goes Live with Deliverable FX Options Clearing
US Regulators Shift Attitudes Regarding Cryptocurrencies
Hedge Funds Suffer in June: BarclayHedge
And Finally…(subscription required)
SEB has announced that it is the first Scandinavian bank to offer FX algo trading to its clients through multibank portals Bloomberg and FXall.
Instead of traditional orders where clients call in for their orders to be executed, they will now be able to place their orders themselves through FX Algos, a new portal which will give them the advantage of a transparent, smooth as well as automated trading solution.
The bank says clients will completely own their order execution, and will be able to select their preferred strategy and follow the execution without the need to contact their salesperson at the bank.
Shell's Foreign Exchange Central Treasury business has implemented a Bloomberg service that connects its subsidiaries globally.
The solution is now available for use by any corporate treasury operation in the world, Bloomberg announced today.
The new technology was built by Bloomberg in collaboration with Shell and connects the company's central treasury office directly to its 718 operating units in 22 countries, so they can quickly and electronically exchange information. The functionality aims to help Shell manage its group risk with more than 200 distinct bank counterparties via the Bloomberg Terminal.