In addition to more
volatile markets, hedge fund managers are facing the additional challenge of
more active investor behaviour according to Credit Suisse’s mid-year Hedge Fund Investor Sentiment Survey.
The survey, which
polled over 200 global institutional investors representing almost $700 ...
Samer Oweida has left Credit Suisse, where
he was managing director, head of Americas institutional FX and cross-asset
sales, global macro products, Profit
& Loss understands.
Although Credit Suisse declined to comment
on the news, market sources have confirmed that he ...
Sofiane Saidi has returned to New York to take up the role of director, risk modelling, at Credit Suisse.
Prior to this appointment, Saidi spent over three years at LCH Clearnet, helping to build out the clearing house’s NDF and FX options product capabilities.
Originally he was based in New York for this role, but he moved to London after the partnership between LCH Clearnet and CLS to facilitate FX options clearing was announced.
Profit & Loss reported in August that Saidi would be leaving LCH Clearnet for a banking position in New York.
P&L Report Card: There is something of a paradox in how the algo execution space has become much more competitive in terms of providers, but the overall take up – while it ticked higher last year – remains subdued. There is so much emphasis on best execution, liquidity management and analytics – most of which falls to the algo execution teams to deliver – that one senses it is only a matter of time before demand surges. If it doesn’t, there is a lot of client facing technology to be accounted for, of course, but it should always be remembered that a lot of the client facing ideas that we see in the market have also driven upgrades in banks’ own ability to participate in FX markets.
P&L Report Card: The development cycle means this category has fewer new entrants than other years, but that is not to say there are not some great products out there, it’s just that, as we have noted in previous years, this award seeks to recognise new products, that while the idea behind them may not be innovative per se, they do help customers navigate the sometimes tricky waters of the FX market.
As we have just noted, JP Morgan’s commodities offering has taken off in the past 12 months, making it a contender. Similarly, it has been a big year for Morgan Stanley with its development and release cycle that has seen the physical keyboard, Fusion Edge and QSI analytics, all seriously enhanced.
Profit & Loss readers cast large numbers of votes this year for their preferred market makers and service providers.
Last year was the first that we changed the category description from banks to market makers to account for the larger proportion of non-banks that now comprise an important part of market making, and this is again reflected in the results.
The industry’s changing dynamics are starting to show. Voting, which spanned across time zones, was close in many categories, so we have listed the top three for each category to acknowledge the runners up.
Six banks are facing a class action lawsuit over alleged abusive practices involving the use of last look in their e-FX businesses.
The six, BNP Paribas (which has already been fined by the New York Department of Financial Services for, amongst other things, it’s broad use of last look), Citi, Credit Suisse, Goldman Sachs, Morgan Stanley and Royal Bank of Scotland face a claim from former retail broker-dealer Alpari (US) in the hundreds of million of dollars according to documents filed in a New York court this week.
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”.
CME Group announces that three of the larger FCMs in the market – Citi, Credit Suisse and Morgan Stanley – have started to clear NDFs for their clients at CME.
This follows on from the announcement from the exchange in late 2017, that seven market participants had agreed to clear NDFs, including three of the top four emerging markets FX liquidity providers, according to the Euromoney survey.
CME claims in a release issued today that its strength in the interest rate swaps (IRS) markets in LatAm and APAC make it “the natural home for participants to clear FX NDFs”.
LCH says it has cleared the first dollar interest rate swaps referencing the Secured Overnight Financing Rate (SOFR), which was identified last year by a committee established by the Federal Reserve as representing the best alternative reference rate for benchmarking dollar interest rate derivatives.
SOFR was first published by the Federal Reserve Bank of New York in April 2018, LCH says Credit Suisse, Goldman Sachs and JP Morgan were among the first participants to clear swaps using the new rate.
Credit Suisse has revealed in its Q2 financial report that the European Commission (EC) is alleging that the bank engaged in anti-competitive practices relating to its FX business.
“On July 26, 2018, Credit Suisse Group AG and certain affiliates received a Statement of Objections from the European Commission (Commission), alleging that Credit Suisse engaged in anti-competitive practices in connection with its foreign exchange trading business. The Statement of Objections sets out the Commission’s preliminary views and does not prejudge the final outcome of its investigation,” the report states.
A spokesperson for Credit Suisse declines to comment on the news.
Former European head of FX spot trading at Goldman Sachs, Mitesh Parikh, has been told he must submit himself to questioning by US authorities over the benchmark manipulation lawsuit brought against a group of banks.
The class action lawsuit was brought against 15 banks, 14 of which have settled. The remaining bank yet to agree a settlement – which was finalised in New York earlier this month – is Credit Suisse. In a judgement released by the UK High Court this week, it is revealed that Parikh has lost his application to avoid giving oral testimony in New York.
Looking at some recent hedge fund surveys, one clear trend emerges: hedge fund fees are under continued pressure. Galen Stops takes a closer look.
Each year, many of the largest investment banks publish extensive surveys regarding investor appetite and expected asset flows for the coming year. In many regards, trying to compare these surveys is tricky, given that each bank collects different data sets and then reproduces this data in very different formats.
One thing was made abundantly clear in the latest batch of surveys, however, and that is hedge fund fees are continuing to come under pressure from investors.