Articles tagged by Refinitiv
Following the closing of the strategic partnership transaction between Thomson Reuters and private equity funds managed by Blackstone, the Thomson Reuters Financial & Risk business will be known as Refinitiv.
Closing of the transaction is expected to occur in the second half of 2018 and until then the business will continue to be known as Thomson Reuters Financial & Risk. The firm says, “The new name was created based on feedback from customers and industry influencers on the intrinsic value of the Financial & Risk business to the industry."
In this week's In the FICC of it podcast, Colin Lambert and Galen Stops discuss the Mark Johnson trial, pointing out that if the current verdict is upheld despite the ongoing appeal against it and ACIFMA's decision to file an amicus brief in support of the appeal, it could have a very significant impact on both the Global FX Code and how the FX industry operates more broadly. They also look at why crypto regulation is unlikely to move as fast as some people in the industry would like, and why this might not be such a bad thing.
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.
Regular readers will know I am unsurprised to read reports of Blackstone pondering the sale of FXall once it completes its takeover of a majority stake in Thomson Reuters F&R, because (for once, I know, before you all message me) I predicted such a thing in this column in June.
What I find interesting in the latest production from the rumour mill is how it is only the sale of FXall – Matching and the other channels are not mentioned.
The previously announced deal for a consortium led by Blackstone to acquire 55% of the equity in Thomson Reuters’ Financial & Risk (F&R) business has now officially been completed.
The deal values the F&R business, which has now been rebranded as Refinitiv, at $20 billion.
Martin Brand, senior managing director at Blackstone, says: "We are pleased to close this landmark partnership transaction with Thomson Reuters. Blackstone is excited to invest in Refinitiv to pursue a business plan focused on accelerating growth through innovation, in partnership with Refinitiv's customers."
In the last month of trading as Thomson Reuters, the firm’s FX platforms delivered a rise in activity in September.
The newly-rebranded Refinitiv enters business having seen the platforms handle average daily volume (ADV) of $425 billion in September across all FX products. This represents a 5.5% increase on August and a 3.4% year-on-year increase.
The increase was thanks to increased non-spot activity, while spot ADV was $98 billion, a 4.2% increase on August, it represents a 4.8% decline from September 2017. Other volume meanwhile was $327 billion, up 5.8% on both a month-on-month and year-on-year basis.
The Thomson Reuters’ results reflect developments elsewhere, with Deutsche Boerse’s 360T still to report data, only Fastmatch FX saw a month-on-month decline.
Refinitiv, formerly the Financial and Risk business of Thomson Reuters, has announced that its Elektron real-time data delivery using Amazon Web Services (AWS) is being expanded.
In a recent survey of 250 financial firms across the globe, Refinitiv found that over 90% of firms surveyed said that they will use public cloud for the majority of their market data needs in less than four years. Further, 24% of them said that they expect to use public cloud for the majority of their market data needs within just one year.
In a release issued today, Refinitiv says that Elektron real-time cloud delivery can simplify access to real-time price information across the financial community and beyond by taking away the need to invest in on-premises infrastructure. The firm says that it also helps clients be more nimble by helping accelerate time to market for businesses that need access to real-time data.
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?”
Thai energy company, PTT Exploration and Production Public Company Limited (PTTEP), has implemented Refinitiv’s FXall trading platform and “Settlement Center” post-trade solution for managing its FX transactions.
Because PTTEP already uses Eikon, this maks it the first Thai corporate to adopt the end-to-end suite of services covering pre-trade, trade and post-trade phases, according to a statement. PTTEP executed its first production trades in early October.
Yongyos Krongphanich, executive vice president, finance and accounting group at PTTEP, comments: “This collaboration between PTTEP and Refinitiv is considered an important step for PTTEP in managing its foreign exchange risk management and streamline back-end processes. This will further improve company’s competitiveness and support sustainable growth in this challenging digital era.”
EBS Markets has reported average daily turnover (ADV) of $88.7 billion in spot FX products in October, a 3% increase on September and a 10% increase year-on-year. The firm, the name of which will be reverting to EBS following the completion of its takeover by CME Group, has now reported three consecutive monthly increases, following a sharp drop in July – at $88.7 billion turnover is slightly below the average for the first nine months of the year of $93.2 billion.
Refinitiv has signed an agreement with Nordic investment management firm E. Öhman J: or Fonder (Öhman) to deliver an end-to-end workflow solution for its investment management business.
The firm says the agreement will cover the entire pre- to post-trade workflow, and allows Öhman to leverage the full depth of Refinitiv desktop, trading, data, and analytical solutions. In a related move, Öhman is also partnering with the OMS/PMS platform from AlphaDesk, a Software-as-a-Service (SaaS) provider of STP software for the buy-side.
In an environment in which liquidity has become increasingly commoditised, how do FX trading platforms offering access to this liquidity differentiate themselves?
This was the question put to Jill Sigelbaum, head of FXall, Refinitiv, during a recent video interview with Profit & Loss.
Sigelbaum responded that providing transaction cost analysis (TCA) and pre-trade analytics tools are examples of ways that platforms can offer increased value to clients, but also highlighted a number of other services that are being developed.
“What really differentiates us, and I think how we move forward, is the pre-trade workflow, the artificial intelligence that we plan to use around analysing the post-trade data so that we can make suggestions to clients, automating the process as much as possible without actually trading for our clients,” she said.
Refinitiv is enhancing the WM/Reuters Thai Baht Spot FX Benchmarks with data sourced from Matching, the firm’s anonymous central limit order book. This has allowed the Thai baht (THB) and Thai baht offshore (TOF) benchmarks to become ‘trade’ currencies using the WM/Reuters Trade Methodology. This change was launched on 1 October 2018 and is available now, the firm says.
Previously, the THB/TOF benchmarks were calculated from indicative interbank quoted rates, provided by multiple financial institutions. Following analysis about the feasibility of introducing transactional data from the available FX trading platforms and a public consultation, Refinitiv says it found that the inclusion of data from Matching achieves the necessary requirements regarding sufficiency, quality and data hierarchy to evolve these benchmarks to become trade based.
The total average daily volume (ADV) of FX trading across Refinitiv platforms in November 2018 totaled $394bn, while the ADV of spot trading was $90bn.
This means that spot volumes were down 4.3% compared to October and November 2017, when Refinitiv – then Thomson Reuters – recorded an ADV of $94 billion.
The overall FX volumes – which include spot, forwards, swaps, options and NDF products – was down 5% month-on-month, but largely flat compared to the ADV of $397 billion recorded in November 2017.
It may be his life-threatening illness (slight cold) but Colin Lambert is in punchy form in this week’s In the FICC of It podcast, so listen in as he and Galen Stops discuss a busy week in the FICC world.
Starting with the potential implications of Cboe’s agreement with UBS to help broaden the reach of its FX platform – and why Refinitiv might want to sit up and pay attention – they rampage through the multi-dealer platform world looking at how (if according to Lambert) platforms can differentiate themselves. Are these firms really taking the single dealer model and deploying it in a multi-dealer landscape? Will this work? What are the USPs of a single and multi-dealer platform?
A number of long-serving staff members have left Refinitiv – previously branded as Thomson Reuters Financial & Risk unit – since it was acquired by a consortium led by Blackstone in October.
Although a spokesperson for Refinitiv declines to comment, Profit & Loss understands that Mechelle Magante, Susan Gammage, Lorraine Ferrari, Jim Ball, Paul Callahan and Bob Bricken have all left the firm. All of them were based in New York.
Magante joined then-Reuters in 2004 as an FX product specialist and stayed on after the firm merged with the Thomson Corporation in 2008. At the time of her departure, Magante was a senior FX relationship manager.
In this week’s podcast, Colin Lambert and Galen Stops take a look at the first in-depth analysis from a broker of the CME-NEX deal and while they accept that much of what was written was already known and had been discussed there were a few nuggets of useful information in there.
On the subject of mergers and acquisitions, they also discuss the recent changes at Refinitiv and clarify their thoughts on potential M&A activity involving that firm’s Matching, Dealing and FXall businesses. Will firms be willing to splash the amount of cash required to complete such a deal? Who would be the best buyers for the combined business or elements thereof? This and more is discussed.
In a quite remarkable conclusion, they close out by expressing sympathy for a regulator – something unlikely to ever happen again – before Lambert offers listeners the benefit(?) of his experience of trading Cable with a trading recommendation as the Brexit saga continues…what could go wrong?
Data from a second group of platform providers has reinforced the message from the first two releases that while it didn't pull up too many trees, December 2018 was a solid month for most that ended a good year. All providers reporting increased activity in the whole of 2018 compared to 2017. There was a more mixed message in the month-on-month data with only three providers reporting an increase from November, but the year-on-year data generally speaking gave grounds for optimism amongst providers.
Refinitiv, formerly the Financial and Risk business of Thomson Reuters, has appointed Sherry Madera as global head of industry and government affairs to “enhance the company’s engagement across government, policy initiatives, industry trends and regulatory developments”.
The firm says this engagement will support its role in global financial markets and “offers customers further opportunity to drive efficiency, transparency and collaboration across the public and private sector”. It adds that Madera and her team will engage with customers, industry groups, regulators and governments to help tackle key customer challenges and advocate for fair, efficient and sustainable financial markets.
Refinitiv has formally launched Trade Performance Analytics (TPA), the new analytics solution for users of FXall. “TPA empowers users to assess the quality of their historical execution, conduct like-for-like comparisons of liquidity providers, as well as make better informed trade planning decisions. Leveraging highly interactive data visualisation technology, this comprehensive analytics solution offers several analytics views that are available for immediate use, with the ability for users to customise their analysis using a wide range of filters,” says Refinitiv in a release announcing the launch today.
The total average daily volume (ADV) of FX trading across Refinitiv platforms in January 2019 totaled $446 billion.
This total, which reflects trading volumes on Refinitiv Matching and FXall in all transaction types, including spot, forwards, swaps, options and non-deliverable forwards (NDFs), represents a 3.2% year-on-year increase and a 12.6% month-on-month increase.
The ADV of spot trading on the Refinitv platforms was $95 billion, actually a 12% decrease compared to January 2018 and a 5.5% increase compared to the previous months. But in non-spot products the ADV was $351 billion, up 8.3% and 15.5% year-on-year and month-on-month, respectively.
Refinitiv has been re-appointed by Bank Negara Malaysia as the calculating and distribution agent for the industry interest rate benchmark, Kuala Lumpur Interbank Offered Rate (Klibor).
As the official indicator of conditions in the interbank money market in Malaysia, Klibor offers market participants from both buy-side and sell-side a reliable reference for various investment and product uses, such as portfolio valuation and compliance reporting.
Introduced in 1987, the rate refers to the average interest rate at which term deposits are offered between selected banks in the Malaysian wholesale money market or interbank market. Klibor rates give market participants an indication of market rates for the trading day. In particular, they are used as reference for diverse financial products including interest rate swaps, options, futures and structured products both within and outside Malaysia.
If the numbers are anything to go by, 2018 was a good year for OTC FX platforms, says Galen Stops.2018 saw the spot volumes increase across all of the multidealer OTC FX platforms that report this data, something that has not happened once in the past five years. Talk to the platform providers about what they saw as the key drivers of trading volumes in 2018 and they largely cite the same factors, chief amongst these being a proper decoupling of US interest rates relative to the rest of the world.
Although the latest FX committee turnover data hold no terrors for other channels, a longer term trend does seem to be confirmed that more volume is heading towards the multi-dealer model, especially those on a disclosed basis. Colin Lambert takes a look.The historically clichéd method for a customer to execute an FX hedge was to call three or four banks and ask for a price. Surprisingly, even as relatively recently as late 2017 customers were still telling Profit & Loss and other industry surveys that they still preferred to pick up the phone, but more recent data suggest this is no longer the case and that customers are moving to the e-channel for their FX needs.
Now that MiFID II is in force and the industry has had time to digest the Global Code of Conduct, platform providers will face less distractions in 2019, says Galen Stops.In the second half of 2017 it seemed as though many FX market participants, on both the buy and sell sides, were forced to shelve any business plans that they might have as resources were diverted to help ensure compliance with MiFID II ahead of the deadline on January 3, 2018. Preparations for MiFID II cost an estimated $2.1bn in 2017 alone, according to a report by Expand, a Boston Consulting Group company, and IHS Markit, and this does not account for the amount of manpower and time that was also devoted to ensuring that everything was ready within these firms ahead of the deadline.