Articles tagged by Deutsche Bank
After a number of years having to take reactionary measures in
response to new regulatory requirements, panellists at Profit & Loss’ Forex Network New York conference expressed
enthusiasm for a new wave of innovation that has the potential to re-shape FX
Citi’s former global head of FX trading,
Jeff Feig, is reportedly seeking to establish a macro hedge fund and is talking
According to a report by Bloomberg, Feig has teamed up with Chris Fahy, with whom he ...
The second quarter of 2016 saw mixed performances amongst some of the major banks, against a background of increasing uncertainty and challenging trading conditions in currency markets.
Goldman Sachs posted a 20% year-on-year increase in net revenues in what it calls Fixed ...
The US Financial
Industry Regulatory Authority (FINRA) has fined Deutsche Bank $12.5 million for “significant supervisory
failures related to research and trading-related information it disseminated to
its employees…over internal speakers commonly known as squawk boxes”.
FINRA says that despite
The US Commodity Futures Trading Commission
(CFTC) has formally charged Deutsche Bank over a breakdown in th ebank’s
systems that led to it not reporting swaps data for five days.
The CFTC filed the civil Complaint in the US ...
Deutsche Bank has named Sandra Francisco as its new head of platform sales, North America – listed derivatives and markets clearing, based in New York.
Francisco took up the new role on October 7, and is responsible for developing account plans for North American clients transacting in global listed derivatives and markets clearing products.
Francisco will also be expected to develop appropriate coverage models and grow profitable market share on a global basis for One Debt, One Equity and One Markets clients in global listed derivatives and markets clearing products.
The US Commodity Futures Trading Commission (CFTC) has closed its investigation into Deutsche Bank’s FX business, the bank revealed in its Q3 results today.
In May 2015, a number of major banks were fined more than $5.8 billion for practices relating to alleged collusion and manipulation of the spot FX market around the 4pm London Fix, by a number of regulatory authorities, including the CFTC.
Deutsche was not one of the firms named in those settlements, but remained under investigation by the CFTC for its FX market practices.
Jason Vitale has resigned from Deutsche Bank in London, ending a 12-year career at the institution.
Vitale, who was global head of FX prime brokerage and co-head of listed derivatives and markets clearing EMEA, is believed to be leaving for a new position in the industry.
He joined Deutsche Bank from State Street in June 2004 as client service and product development manager in its FX prime brokerage business, before being appointed to the European PB sales team. His role was expended in 2008 to include fixed income prime brokerage and in 2010 he was appointed global head of FXPB. He took on his current role in June 2012.
Former Deutsche Bank CEO Anshu Jain has joined Cantor Fitzgerald (CFLP) as president.
In his new role, Cantor says Jain will work with Howard Lutnick, chairman and CEO of CFLP, and “will build on Cantor Fitzgerald’s strong client-focused business foundation and drive the Firm’s momentum as it enters the next phase of growth.”
Jain stepped down from the role of co-CEO of Deutsche Bank in mid-2015 as concerns grew over the bank’s financial health and a series of regulatory missteps.
P&L Report Card: This remains a strange time for hedge funds, because the discarding process that we have witnessed for almost two years now seems to have accelerated. Part of the problem is a clash of cultures – the hedge fund manager has a direct obligation to its investors to make every dollar and cent count and this inevitably means there is less on the table for the banks. Throw in a key skill of the hedge fund manager – market timing – and you have even less enthusiasm on the part of the banks to embrace the sector to the degree they once did.
This is not to say the relationship is irrevocably broken however, rather that, as banks focus on the tail clients, hedge funds figure quite highly in that group.
The Federal Reserve has announced two enforcement actions against Deutsche Bank that require the bank to pay a combined $156.6 million in civil monetary penalties.
The bank will pay a $136.9 million fine for “unsafe and unsound practices” in the FX markets, as well as a $19.7 million fine for failure to maintain an adequate Volcker rule compliance programme.
The Fed says it found deficiencies in the Deutsche’s oversight of, and internal controls over, FX traders and that the firm failed to detect and address that its traders used electronic chat rooms to communicate with competitors about their trading positions.
Russell Lascala and Jon Tinker have been named as co-heads of FX at Deutsche Bank, reporting to Sam Wisnia, head of rates, who is now running an newly aligned rates and FX business.
The two men replace David Wayne, who has been appointed to a new role running electronic trading across asset classes at the bank as it brings together its electronic trading capabilities. Wayne will report to Garth Ritchie, co-head of Deutsche’s Corporate and Investment Bank as well as assume leadership of the bank’s strategic analytics teams across CIB
Profit & Loss understands that Darren Boulos has joined Bank of New York Mellon as head of FX sales and trading for Asia Pacific.
Boulos was last at Deutsche Bank in Sydney where he closed out a nine-year career in the role of head of FIC for Asia. Boulos joined Deutsche as head of short term interest rate trading in 2006, before moving to run FX in Sydney from 2010 to 2012.
Prior to Deutsche he had spells at RBC and Credit Suisse in Sydney, Singapore and Tokyo.
Sandra Francisco has joined Wells Fargo as a director, according to market sources.
Francisco joins from Deutsche Bank, where she was a director, focused on prime brokerage sales, FX hedge fund sales and derivatives clearing.
Prior to joining Deutsche in 2008, she worked for over seven years as a vice president at Goldman Sachs, focused on credit sales and prime brokerage sales. Both her Deutsche and Goldman roles were based in New York.
A study released by Deutsche Bank seeks to challenge the assumption that having more liquidity providers in an aggregator inevitably leads to better execution.
Aggregators are popular in the FX market, enabling trading firms to routinely put multiple liquidity providers in competition and then transact with the one offering the best price. Being able to consolidate liquidity, in the form of bid and offer prices and amounts, from various sources into a single, consolidated order book is particularly valuable in an OTC market with no centralised exchange.
“But in a market where the terms of trade are privately negotiated and the liquidity provided is bespoke to the trader, deciding on a suitable aggregation setup is not a trivial task,” according to the report, titled “Execution in an Aggregator”.
Deutsche Bank and JP Morgan have filed court documents seeking to settle a class action claim brought against them and other market participants over alleged Yen interest rate benchmark manipulation.
The documents were filed Friday in the US District Court of Southern New York and while the two banks do not admit liability or wrongdoing, Deutsche has agreed to pay $77 million and JP Morgan $71 million. These settlements are more than double those agreed by HSBC and Citi last year.
A new research report from Deutsche Bank highlights a change in the perception of sterling across the three major FX market time zones following last year’s vote to leave the European Union. The article, How Brexit changed how sterling is traded across the world is written by Deutsche Bank analysts Oliver Harvey and Rohini Grover, and it uses intra-day seasonality as the basis for its study. Previous work by the authors had found “strong evidence” of investment biases in the different time zones.
Cobalt, the FX post-trade processing network based on shared ledger technology, has closed an investment from Henry Ritchotte, the former COO of Deutsche Bank, who will become a member of Cobalt’s strategic advisory board.
Ritchotte spent over two decades at Deutsche, where he was a member of the management board and Group Executive Committee acting as chief operating officer and chief digital officer.
Since leaving the bank at the end of 2016, Ritchotte established RitMir Ventures, a principal investment firm focused on investing in products and services transforming finance through disruptive regulatory and technology driven business models.
LCH SwapAgent, a service for the non-cleared derivatives market, says that it has processed its first trades.
Citi and Deutsche Bank were the counterparties to the Swiss franc-denominated interest rate swap and euro-denominated inflation swap. The trades were processed through MarkitServ.
LCH SwapAgent is available for market participants trading non-cleared OTC interest rate derivatives. LCH says acting as an independent calculation agent, it calculates and enables customers to exchange bilateral margin and settlement payments, without the need for a central counterparty.
Dave Reid has left Citi and is set to be named as the new global head of FX prime brokerage (FXPB) at Deutsche Bank, according to market sources.
Based in London, Reid had been with Citi since July 2006 and was responsible for prime brokerage sales at the bank.
Prior to joining Citi, Reid held roles in prime brokerage and e-FX at AIG Financial Products, Atriax and ANZ Investment Bank, as well as derivatives sales and trading roles in various locations globally for Swiss Bank Corporation.
Neehal Shah has joined BNP Paribas as global head of G10 FX trading with immediate effect. He will be based in London and report directly to Adrian Boehler, global co-head of FXLM and commodity derivatives.
Shah joins after 18 years at Deutsche Bank, where he held a number of senior positions including global head of currency options and complex risk trading, head of FX trading Americas and global head of FX investor sales. He was also global head of markets electronic sales, as well as a member of Deutsche's Markets Electronic Trading Management Committee.
One of two banks still to settle a class action lawsuit over FX manipulation claims has agreed to pay $190 million.
Court documents filed today (September 29) show that Deutsche Bank has agreed to settle, leaving Credit Suisse as the only bank of 16 that were named in the class action yet to agree a deal. The proposed settlement remains subject to a Fairness Hearing – Deutsche has also agreed to provide “reasonable cooperation” in the continued prosecution of the Action, according to court documents.
Deutsche Bank has put over 150,000 lines of code from its proprietary platform Autobahn into the public domain so that trading applications from different providers can use it as a shared foundation and work seamlessly with each other. The code will also be integrated into the Symphony collaboration platform.
The move is Deutsche Bank’s first contribution to open source technology, in which firms provide public access to computer code so that other programmers can suggest improvements and new ways of using it, for example to provide new services.
Deutsche Bank has unveiled two hires for its North American FX business with the hire of Winfield Sickles and Donna DiDomenico.
Sickles has joined from Tiger Management as a director in macro FX sales, based in New York. In addition to working closely with Deutsche’s institutional clients in the FX space, the bank says he will build on its cross-asset presence within the global fixed income client base.
DiDomenico joins Deutsche in New York from HSBC to focus on the bank’s real money clients.
New research from Deutsche Bank shows that returns from FX macro managers have dropped to their lowest levels since the 1980s, despite the fact that “there does not appear to be a structural decline in the excess returns available to FX investors”.
The Deutsche Bank Currency Index (dbCR), which captures the beta available in the FX market by following a simple carry, valuation and momentum strategy, is at -2% for the year, but is well within historical ranges.
Hence the assessment from George Saravelos, an FX strategist at Deutsche and author of the research note, that despite low volatility and uncertainty around key macro issues there doesn’t appear to be a structural decrease in potential FX returns.