Articles tagged by Nex Markets
Nex Data, a Nex Group business which delivers independent market intelligence and price information for OTC data and Nex Markets, a NEX Group business which provides electronic trading technology and services, have launched the EBS JPY Benchmark, which it claims is the first fully electronic, transaction-backed reference rate for the Japanese yen.
Nex says the creation of the reference rate for JPY seeks to provide high standards across the market.Reflecting the USD/JPY rate, the new benchmark is published daily at 15:00 Tokyo time.
The first FX platform providers to report average daily volume (ADV) data indicate May maintained the momentum of the previous months.
Spot FX activity on NEX Markets (formerly EBS) was $81.3 billion per day, up 6.8% from April and 12% higher year-on-year. At CME combined FX futures and options on futures volume was 823,000 contracts per day.
CBoE’s HotspotFX reports ADV of $28.1 billion, a 1.4% increase on April and a very healthy 20% increase from May 2016, while FastMatchFX reports ADV of $22.5 billion, a 18.4% month-on-month increase and almost double May 2016’s ADV of $11.4 billion.
FXSpotStream handled $17.5 billion in May, up 2% from April and 9% from May 2016 and Gain’s GTX reports ADV across its ECN and SEF of $10.7 billion, a 7% drop from April but a 55% increase from May 2016.
NEX Markets says that Bank of China (Hong Kong) has joined its EBS Direct platform as a liquidity provider.
Nex says the move offers “increased liquidity and improved pricing to clients on the platform globally, particularly those trading the offshore Chinese renminbi (CNH).”
EBS Direct is Nex’s disclosed relationship trading venue and Jeff Ward, global head of NDFs and forwards and head of FX Asia, at Nex Markets, says, “As the Chinese yuan moves closer to internationalisation, this can only enhance our customers’ access to liquidity, improved pricing and certainty of execution.”
In spite of several spikes in activity during the month, the overall impact on FX volumes in June was minimal with two of the first group reporting seeing a slight increase and two a slight decrease.
NEX Markets says average daily volume (ADV) in spot on its EBS platform was $83.3 billion in June, a 2% increase from May but a 12% decline year-on-year.
CBoE’s HotspotFX reports ADV of $27.9 billion, fractionally down from May’s $28.1 billion and 2.4% down from June 2016
Elsewhere, FastmatchFX, which was recently bought by Euronext, reports ADV of $19.7 billion, a 12.5% drop month-on-month but 20.9% higher year-on-year.
Finally, Gain’s GTX says ADV was $10.8 billion across its ECN and SEF, up 1% from May and up 12% from June 2016.
FlexTrade has announced the appointment of Bruce Wolf as its head of FX business development.
Based in the company’s headquarters in New York, the firm says Wolf will manage sales and business development for FlexTrade’s FX trading solutions for both the buy side and sell side markets.
Prior to EBS, Wolf worked at Integral Development as managing director, head of Americas, before that he served as a director, FX banks sales desk head, for Citi in Zurich, New York and London.
NEX Markets has launched a new suite of analytical tools on its EBS FX trading platform that seeks to match the sophistication levels of those available at banks and trading firms, however at market level.
NEX Quant Analytics was launched today and uses benchmark data taken from the entire EBS ecosystem. It delivers “real and measurable” insight for clients into their own trading activities and the ability to look at their performance versus that of their peers.
With execution quality taking a more prominent role in FX market participants’ thinking, especially around their market impact, the timing would appear to be good for the firm.
Market sources tell Profit & Loss that Lisa Spiteri, regional manager, e-FX distribution for APAC, India, Japan and Korea for NEX Markets, has left the firm.
Spiteri has been with NEX in its EBS iteration for over 13 years, having joined the firm in 2004.
Prior to EBS, Spiteri worked at UBS and Credit Suisse over a seven year period in interbank sales, she also spent time as an FX trader at UBS and Swiss Bank Corporation in the 1990s.
CME Group has recorded what Profit & Loss estimates to be its highest average daily volume in FX products since September 2014, while NEX Markets has also reported a strong month, in line with other OTC platforms to report earlier this week.
CME says its handled 1,256,000 FX contracts per day in its FX futures and options business, which Profit & Loss estimates to be just over $124 billion per day in notional value.
It was a good month also for NEX Markets as it handled $97.4 billion in spot FX.
Both NEX Group and CME Group have reported monthly volume data broadly in line with the first four platforms to report for October
Nex Markets says average daily spot volume (ADV) on its EBS platforms was $80.6 billion in October, a 17% drop from September, but a 5% rise year-on-year.
It was a similar picture at CME where its combined FX futures and options on futures was just over 887,500 contracts per day, which Profit & Loss calculates to be just under $88 billion per day, of which just under $80 billion was in futures.
CME’s ADV is 29.4% lower from September’s stellar performance, however again it was 15% higher year-on-year.
NEX Group (Nex) says it has signed a Statement of Commitment to adopt the principles of the FX Global Code across its EBS FX trading platforms and NEX Optimisation services.
The firm announced the signing of the Statement of Commitment and introduced a new Nex public register at the Global Foreign Exchange Committee meeting held at the Nex offices in London this week.
The purpose of the register is to raise awareness of those that have signed their Statement of Commitment to the Code.
There has been contrasting news from two major FX trading venues with NEX Markets reporting a low for average daily volume (ADV) on its spot FX platform, but CME recording good growth.
NEX says ADV in spot FX was $65.5 billion, matching the platform’s lowest since it started reporting, which was set in August 2016. There was better news from CME Group, however, which reported ADV in its FX futures and options on futures contracts of one million per day, which Profit & Loss estimates to be in the region of $99 billion per day in notional terms.
NEX Markets has raised brokerage on its Select and Direct platforms following last year’s release of NEX Analytics and what Tim Cartledge, head of FX at NEX Markets, terms, “a range of improvements” to the platform including better aggregation logic and sweeping capabilities.
Notification of the price rise is understood to be going out in Europe this week with the rise to come into effect in April, it will also apply in Asia and the Americas in coming months as the new functionality is embedded in those regions.
The world is all about keeping the customer happy and that is not always the easiest thing to do - they are such irrational things sometimes! Aside from such matters, two news items this week have piqued my interest - not only do they mean that Thomson Reuters can have a long hard look at its FX business, but we will also find out if customers really do care more about market quality than they do the brokerage bill that arrives every month!
NEX Markets maintained the momentum from a strong January performance by reporting average daily spot volume of $108.3 billion in February.
At 3.2% up on the month and 34.2% up year-on-year, the performance largely reflects that of other platforms that reported data this month. It is also NEX Market’s strongest performance since March 2015 when it benefited from the continued fallout of the Swiss National Bank’s decision to remove its floor in EUR/CHF.
Thomson Reuters, meanwhile, reports spot ADV of $113 billion, up 4.7% from January but again an impressive 34.5% up year-on-year.
Profit & Loss understands that Darryl Hooker, global head of metals and spot and head of FX EMEA at NEX Markets is leaving the firm.
Hooker, who has been with the firm for 18 years having joined its predecessor Icap in 2000, is believed to be leaving this week.
Hooker was co-head of EBS Brokertec Markets before the rebranding to NEX, having also served in a variety of roles including global head of new and emerging markets. During the latter he helped drive the project to establish EBS as the prime ECN for Chinese renmimbi business.
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.
The three largest FX platforms to report average daily volume (ADV) have reinforced the message from the first group to report that May was a good month for the industry. All three of CME Group, NEX Markets and Thomson Reuters have reported sizeable increases in activity both month-on-month and year-on-year, with NEX rising 25% from April, CME up 34.1% and Thomson Reuters up 12.6%. All three platforms report ADV in excess of $100 billion for the third time this year, a feat last achieved in June 2015.
In keeping with data released yesterday by other platforms, CME Group and NEX Markets saw a month-on-month decline in average daily volume in June.
NEX says it handled $95.8 million per day in spot FX volume, down 5.4% from May’s $101.3 billion. Year-on-year, NEX is showing good growth, however, up 15% from June 2017.
CME Group says it handled 1,000,000 FX futures and options contracts per day in June, which Profit & Loss estimates to be around $99 million in notional value. This is 9.1% lower than May and unchanged year-on-year.
In this week’s In the FICC of It podcast, Colin Lambert has another one of his “theories” – this time about why 360T bought GTX – and Galen Stops thinks he knows why CboeFX is doing so well.
They also rail against PR-speak when looking at this week’s news from the crypto and corporate world and ponder the value of corporate treasuries turning themselves into professional FX trading units.
They close out by discussing the possibilities of voice activated trading by creating “eFXa” (Trademark pending) and P&L’s managing editor looks to continue his stellar* run of World Cup predictions by tipping yet another surefire winner.
What’s in a name? It’s a question that is asked in all walks of life almost on a daily basis and the last week or so has seen it asked in financial markets as Thomson Reuters Financial & Risk Division prepares for life as Refinitiv. I must confess that on reflection I don't have that much of a problem with the name itself, but the rebranding opens the window on a period of vulnerability for the renamed business as competitors eye one of its prized assets.
NEX Markets has released a new report, which it says demonstrates greater transparency and improved behaviour in the FX market since the FX Global Code came into effect in May 2017.
The report, entitled The FX Global Code: Changing Transparency and Behaviour, uses data from NEX Quant Analytics and highlights how the firm has witnessed a significant reduction in hold times, reject rates and a tightening of spreads on the bilateral EBS Direct platform. “This suggests an industry-wide move for greater transparency and improved market behaviour,” the firm says.
The second group of venues to report data indicate a similar pattern to the first, with NEX Markets and CME Group up month-on-month and Integral down – all were up on a year-on-year basis.
NEX Markets says average daily volume (ADV) in spot FX was $84.7 billion, up 3.4% from July and up 2% from August 2017. CME Group says it handled an average of 813,113 contracts in its FX futures and 69,803 in its FX options product set. Profit & Loss estimates this to represent around $87.4 billion in total notional value.
Integral Development, meanwhile, reports ADV in all FX products, spot, forwards and swaps, to be $33.5 billion.
NEX Markets has taken a small but important step to embedding the FX Global Code further into its business by allowing liquidity providers and liquidity consumers who have registered their Statements of Commitment (SoC) to the FX Global Code to identify themselves.
Hugh Whelan, global head of liquidity management at NEX Markets, says the move will help clients identify which of their counterparties on EBS Direct and EBS Select, have signed and registered an SoC on the NEX Global Code Register. “The FX Global Code is an important piece of work that will help build transparency levels in the industry further,” he says
CME Group has reported the second busiest month for its FX contracts since September 2014. The exchange group reports that it handled 1.132 million contracts on a daily basis in September, a massive 28.2% increase on August. Profit & Loss estimates this to represent a notional value of $112 billion per day.
Year-on-year, activity is actually 15.4% lower at the Merc, with the previous September registering 1.23 million contracts.
Elsewhere, NEX Markets says it handled average daily volume of $86.1 billion, up 1.6% from August, but also down from the previous September, by 11.6%.
Profit & Loss understands that Laurence Timmons, head of sales for Asia Pacific at NEX Markets in Hong Kong, is returning to London. It is unclear if he is remaining with NEX and if so, to what role he will be appointed.
Serge Marston, regional head of sales for EMEA at NEX Markets, is believed to be taking on additional responsibility for Asia Pacific and while he will continue to be based in London, sources familiar with the matter say he will spend “significant” time in Asia Pacific.