As the FX jobs market becomes ever more competitive, Galen Stops talks to recruiters about the skill sets that firms will be looking for in 2017
As the FX industry continues to evolve, so too does the skill set that employers require and the roles that are available. For example, once upon a time it would have seemed inconceivable that vendors and ECNs would need liquidity managers. Now many of them employ people in a role similar to that of an e-trader, but instead of taking risk their job is to examine the liquidity available and help guarantee the efficiency of trading for clients and optimise P&L for their own company.
Plenty of things surprise me in life; West Ham, the New York Giants and the Montreal Canadiens actually winning; Cable going up; the people we elect as our leaders – the list is endless.
One line on the list continues to puzzle and intrigue me in equal measure – why have we still to make significant progress on automating the trading of FX swaps? Am I the only one who sees the time for CLOB in FX swaps as being now?
Today is all about questions – the most pressing of which has to be, if Switzerland issues a digital currency, will it immediately put an offer in the market? Perhaps more pertinently, it is also about the impact of the lack of traders in the FX market, because if the first week of the year is anything to go by then cryptocurrencies will continue to steal the agenda – the traditional FX market just doesn't seem as though it can be bothered.
Galen Stops digs a little deeper into the results of the recent JP Morgan e-trading survey and finds some surprising statistics.
For those of you who missed it, there were some noteworthy nuggets of data contained within JP Morgan’s recent e-trends survey. But digging a little deeper beyond the headline figures reveals some even more interesting trends emerging in the FX market.
The first thing to point out is that the survey raises some curious questions about algo usage amongst clients. On the surface, it presents good news for algo providers – although only 8% of respondents said that they currently use algos for execution, 24% said that they plan to increase their usage of them in 2018.
Profit & Loss Forex Network NYC is set for May 24th at the Crowne Plaza Times Square, with an opening with a Fireside Chat entitled “Keeping Pace with Cryptos” with Mike Gill, Chief of Staff to CFTC Chairman Christopher Giancarlo, and CFTC COO.
The annual event will take a look at the emergence of cryptocurrencies and tokens as a “new economy”, one that offers enticing opportunities for traders given the volatility these products exhibit and their lack of correlation to traditional asset classes. The growth in these digital assets in 2017 was extreme, can the beta tailwinds continue in 2018? And with the emergence of so many new exchanges, cryptocurrencies and tokens, where should investors look for the best alpha opportunities?
Profit & Loss’ annual New York conference is set for this Thursday, May 24 at the Crowne Plaza, Times Square and features a host of sessions looking at the world of crypto as well as more traditional FX issues such as the role of currency managers and the future of electronic trading.
The programme kicks off with CFTC COO and chairman Chris Giancarlo’s chief of staff Mike Gill, discussing “Keeping Pace with Cryptos” and then continues with a P&L BURST session in which Brian Liston, co-founder of Seed discusses a new approach to trading cryptos.
Trading firm XTX Markets’’ Singapore entity is building a new FX pricing and trading engine which will go live in Equinix’s Singapore SG1 data centre in June 2018.
XTX says it believes that the SG1 build-out will enhance the e-FX trading experience for XTX’s counterparties in the region and in turn, help increase participation rates and volumes for e-FX activity conducted within Singapore to benefit the regional FX market ecosystem.
“Under the Financial Services industry transformation map (ITM) introduced in October 2017, MAS aims to enhance the e-FX trading infrastructure to improve market transparency and facilitate price discovery of FX trading in the Asian time zone,” says Alan Yeo, executive director, Monetary Authority of Singapore (MAS).
Key to the announcement made today by BNY Mellon that it is launching an FX options desk is that the bank believes that this represents the next step in its transition to a “full-service” FX franchise.
“We’re transitioning from a custody FX business to a more traditional full-service FX provider,” Adam Vos, global head of FX at BNY Mellon Markets, tells Profit & Loss. “As such, FX options was a key deliverable along this journey because it means that we can now meet more of our
client’s trading and hedging demands. It’s very important that they no longer have to go somewhere else for this activity, they can trade options - as well as other products – directly with us.”
A new report from research group Greenwich Associates says that the focus of e-trading efforts in financial markets is switching away from mature markets like FX and into high yield bonds and cash equities.
In its latest report, From FX to High-Yield Bonds: Global Electronic Trading Update, Greenwich’s head of research, Kevin McPartland, says that the main action has shifted to new frontiers like high-yield bonds and those changing at the hands of new regulations like cash equities, where the impacts of MiFID II and advances in automated trading technology have triggered a surge in e-trading.
In this week’s podcast Galen Stops shares some feedback about a previous week’s discussion on electronification of NDFs and Colin Lambert reports from an equity-focussed market structure conference, some of the statements from which, surprised him and lead to another one of his “theories” about the relationship between FX and equities.
Our two podcasters also dive into the big announcement from the crypto world that Fidelity are stepping into this space in a big way and ask the question, who comes next?
They close out with a brief example of the challenge facing Refinitiv as it rebrands, before asking the question first put in yesterday’s And Another Thing…Was FXMarketSpace really, as Stops puts it, “the right idea at the wrong time?”
Volumes in NDF markets have increased dramatically in recent years, but what is behind this accelerated activity and will it continue? More importantly, what role are the lessons learned from the G10 markets playing? Colin Lambert finds out.
The biggest growth story in foreign exchange over the past two years since the Bank for International Settlements’ 2016 Triennial Survey of FX Turnover has largely taken place in the shadows, for while spot volumes have largely plateaued, activity in the non-deliverable forward segment has grown exponentially. NDF average daily volumes, as reported by the UK and US foreign exchange committees, is 50% in the two years from April 2016 – a pace of growth no other product can match.