Articles tagged by Hotspot
The first three platforms to confirm data
for June show that FX volumes rose across the board driven, of course, by
activity around the UK’s vote on European Union membership.
FastMatch recorded average daily volume
(ADV) of $16.1 billion in ...
Trying to decipher platform performance
during last month’s UK-inspired mayhem is almost as difficult as keeping track
with the latest shenanigans in UK politics following the vote to leave the EU –
but I’ve had a go and there ...
Natasha Uberoi has left her position as director, FX sales,
at Bats Global Markets in New York, according to market sources.
Although a spokesperson for Bats declined to comment on the
news, Profit & Loss understands
that Uberoi left the firm ...
Thomson Reuters, FX Spotstream and FXCM
have all reported a month-on-month decline in FX average daily volume (ADV),
however the latter two are up on a year-on-year basis.
Thomson Reuters says spot volumes across
its platforms was $97 billion per day, 8.5% ...
The BIS Triennial survey highlights the drop in spot volumes, but how does the platforms' performance compare over the same period?
Michael Williams has left Curex, where he was president and vice chairman. He is understood to be establishing a consultancy firm in the fixed income and FX space.
Williams joined Curex in January 2010 from Hotspot, where he was senior managing director of Knight Capital and head of the Hotspot platform business. He joined the firm in late 2006 from HSBC where he was responsible for the New York trading and sales business.
A veteran of the industry, before HSBC Williams also held roles at Cantor Fitzgerald, Intercontinental Exchange Partners and Bierbaum – the latter being a business he established in New York in 1978.
CBOE Holdings has confirmed its plan to buy Bats Global Markets for a total of approximately $3.2 billion, with trading across all asset classes expected to migrate onto a single platform utilising Bats’ proprietary trading technology. The transaction is expected to close in the first half of 2017, subject to regulatory approvals.
While the Bats-owned Hotspot FX business is not expected to be materially impacted, the combination of CBOE’s futures platform and Hotspot’s spot FX products creates a unique opportunity, Chris Concannon, Bats' CEO, told Profit & Loss on a media call.
The first FX platforms to report their monthly trading volumes show that trading activity bounced back in September after a significant slowdown in August.
Hotspot, FastMatch and Gain GTX all reported increases in average daily volume (ADV) on their platforms, both month-on-month and year-on-year.
Hotspot registered an ADV of $28.3 billion in September, a 25% increase from August and an 8% year-on-year increase.
GTX reported an ADV of $8.4 billion on its ECN and SEF combined for September, a 30% increase from the previous month and a 29% increase from September 2015.
Galen Stops looks back at how the OTC FX platforms fared in 2016 and talks to them about their strategic plans for 2017.
Speaking to platform providers at the end of 2015 about their prospects for the next year, they were all fairly bullish that a period of subdued volatility, and subsequently trading volumes, was about to come to an end.
And on the surface, the reasons they cited for this optimism were logical. The US Federal Reserve had just approved a quarter-point increase in its target funds rate, the first change in rates since 2009 and the first increase since 2006. Many hoped that further rate increases were coming and that interest rate differentials might start to produce trading opportunities and therefore lift FX volumes.
After the Bank for International Settlements (BIS) Triennial FX Survey revealed last year that the industry has shrunk in terms of notional volumes for the first time in 15 years, speakers at Forex Network London outlined the factors that could help this market get back to growth.
During the discussion the speakers on the panel outlined a number of issues that have constrained trading volumes over the past three years, including technology shortcomings, a lack of investment in some areas of the market, and regulatory challenges.
Against this background, the question was put to the panellists, how does the FX industry get back to the kind sustainable growth that it witnessed between 2001 and 2016?
Hotspot has appointed Jon Weinberg as head of FX liquidity analysis. Weinberg will move into this newly created role from UBS, where he was head of liquidity management within the bank’s FX e-trading group.
At Hotspot, he will be responsible for creating data analytics aimed at enhancing the trading experience of Hotspot’s customers. Based in London, Weinberg will report directly to Bryan Harkins, head of US equities and global FX at CBOE, which recently acquired Hotspot’s parent group, Bats Global Markets.
The first group of FX platforms to report average daily volume (ADV) indicate the steady start to the year continued through April.
CBoE’s HotspotFX reports ADV of $29 billion per day, just down from March’s 29.7 billion, but 13.8% up year-on-year.
Meanwhile, FastMatchFX has set another high water mark in ADV terms, eclipsing last month’s $19.2 billion by recording $19.8 billion in April, up 83.3% from April 2016.
Gain’s GTX also had a steady month, reporting ADV of $11.5 billion, slightly down from March’s $11.8 billion but up 47.4% year-on-year.
Hotspot has revealed that the first anonymous outright deliverable forward FX transaction has been executed on its platform.
Hotspot says that is the first platform to provide outright deliverable forwards on an anonymous central-limit order book, and that it is also the first platform to allow prime brokerage clients to post passive quotes.
This is designed to allow for expanded trading activity from market participants, who will be able to trade without being forced to cross the bid-offer spread.
Paul Millward, head of product strategy, and Paul Reidy head of technology, spearheaded the project, which culminated in a one-month EUR/USD trade, of $100,000 notional value.
Hotspot has hired Mike Cahill as director, FX sales, in the firms’ London office.
In his new role, Cahill will be responsible for covering European systematic trading and asset management and will report in to Ben Leit, head of European FX sales at Hotspot.
Prior to this Cahill worked at KCG where he was responsible for relationship management within the firms’ FX market-making business.
“As we build new functionality and features, and broaden our ambitions for Hotspot both in established and growth markets, it’s important we maintain our long record of outstanding client service and support with a determined and expert sales team,” Leit comments. “Mike’s appointment, will strengthen our business in a key area of geographical focus and I’m delighted to welcome him to our fast-growing team.”
Hotspot says it has aligned its activities across its global business with the principles of the FX Global Code, issuing a statement of commitment today.
Following a comprehensive internal review, Hotspot says that its business practices, procedures, compliance framework and disclosure standards have been augmented to fully reflect the Code’s principles, as published in May 2017.
The platform has also conducted a series of customer meetings to clarify how Hotspot’s adherence will impact them and their business. These efforts, which started over a year ago and developed as the Code’s drafting progressed, will remain a focus for Hotspot as adoption of the Code increases across the FX community and as its usage starts to further inform industry behaviour.
If there’s one thing that has become abundantly clear over the past few years, it is that many OTC platforms have decided that they need to scale their businesses up and out in order to be successful in today’s FX market.
This was made abundantly clear in a press call today when Terry Duffy and Michael Spencer, respectively the CEOs of CME Group and NEX Group, talked about the logic behind their $5.4 billion tie-up.
“Effectively, what we’re building is a bigger supermarket,” said Spencer. “Why do people shop in supermarkets? Because it’s convenient to buy everything in one place.”
Barry Calder is set to leave his role at Cboe FX in New York at the end of the year.
Calder, whose current title is director, liquidity management, co-founded the Hotspot FX platform in 2000 and worked in various roles as it was subsequently acquired by Knight Capital Group (KGC), BATS Global Markets and then most recently, Cboe in 2017.
“Barry has played an important role in the growth and evolution of Cboe FX. He has decided the time is right for him to pursue new opportunities. We have valued Barry’s dedication, keen insight and contributions over the years and we wish him all the best in his future endeavours,” says a spokesperson for Cboe.
In recent years, large exchange groups have been lining up to buy OTC FX platforms. But in this game of musical chairs, what happens to the venues without a buyer when the music stops? Galen Stops reports.One of the major trends in the multi-dealer platform space in recent years has been the acquisition of these platforms by larger exchange groups. Hotspot was the first to go after it was bought by BATS Global Markets in 2015, which in turn was then acquired by Cboe Global Markets in 2017 and the FX platform was rebranded as CboeFX.