Articles tagged by UBS
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 ...
A US District Court judge has ratified fines against five major banks following their guilty pleas last year over currency market manipulation charges.
US District Judge Stefan Underhill in Bridgeport Connecticut agreed fines for Citi of $925 billion, Barclays $650 million, JP Morgan $550 million, Royal Bank of Scotland $395 million and UBS $203 million after the banks pleaded guilty to FX market abuse in mid-2015. The fines were recommended by the US government and accepted by Judge Underhill last week.
P&L Report Card: Structured products continues to represent a broad church – there is a focus on FX structured products here, but it should not be ignored that it is also about wider investment products and the ability to build a basket of investments.
Clearly any bank with a healthy private client franchise is going to score well here and indeed UBS’s structured products sit very well within Neo. Credit Suisse, likewise, continues to keep pace and users like its Index functionality, which two years ago added basket building capabilities, a la Barclays, to its suite of services.
P&L Report Card: Given the focus on regulatory compliance, probably the one area as busy – probably busier – than the technology development teams, is the back office. Post-trade is where the box ticking is done, the checks and balances exist here. We have noted in previous years how we view the end game in post-trade as being based very much around a utility model – the stricter the rules get, the less room there is for manoeuvre and innovation.
P&L Report Card: The rates space remains in a state of flux, in spite of regulatory certainty finally being established. The confusion – such as it is – stems from whether banks are principals in the business or not. The general mood is that they don't especially want to be, but as always, there are different thinkers. We continued to be uncertain going into this year’s awards process whether this award has merit given the general move towards SEF (or similar) trading, but we are happy to report the rates business has had a stay of execution from Profit & Loss for at least another year!
P&L Report Card: A recurring theme of this year’s awards is going to be familiarity – in that with so much work going on behind the scenes there were few major changes to the front-end product set at many institutions.
Regulatory compliance has been a big issue amongst the banks for several years now and it shows little sign of slowing down, with 2017’s hot topic being MiFID II, which was, as we have noted, this year’s number one theme. Having already been delayed once, some institutions are comfortable they have the right structure in place to remain compliant and to help their clients be so as well – others are less confident.
For the second year in succession, UBS and JP Morgan have won the top two prizes in Profit & Loss’s Digital FX Awards.
For the fourth year in succession, UBS’s Neo won Best Platform, it was also named as Best Rates Platform and Best Structured Products Platform. Of note, UBS also won an unprecedented 10th Post Trade Award in a row.
Meanwhile JP Morgan reinforced its success from 2016 when it first won Best FX Platform by carrying off the award again in 2017. The bank also added three others to notch four trophies for the first time in the Digital FX Awards’ 15-year history.
Profit & Loss readers cast large numbers of votes this year for their preferred market makers and service providers.
Last year was the first that we changed the category description from banks to market makers to account for the larger proportion of non-banks that now comprise an important part of market making, and this is again reflected in the results.
The industry’s changing dynamics are starting to show. Voting, which spanned across time zones, was close in many categories, so we have listed the top three for each category to acknowledge the runners up.
Richard Cochinos has joined UBS as head of macro sales and trading content, knowledge network Americas. He will be based in New York.
A spokesperson for the bank confirms the move.
He joins from Citi, where he initially worked as North America head for G10 FX strategy based in New York before moving to London to take on the position of head of Europe G10 FX strategy.
Before working at Citi, Cochinos worked as a vice president at Bank of America and as an FX strategist at Merrill Lynch.
Profit & Loss understands that Rene Schwarzl has left Standards Chartered Bank in Singapore where he was director, global macro sales.
A report in the Financial Times says that eight banks are preparing to settle with the European Commission (EC) over allegations they formed a cartel to rig foreign exchange markets. The FT names six of the banks as Barclays, Citi, HSBC, JP Morgan, RBS and UBS and says two others are also preparing to settle. Any settlement may also provide extra impetus for the various legal firms seeking to replicate their success in winning civil settlements from banks in the US, in the European Union.
The US Commodity Futures Trading Commission (CFTC) has filed a total of eight charges against three banks and five individuals for spoofing in precious metals markets as well as other futures contracts.
The Commission issued orders filing and settling charges against Deutsche Bank, requiring it to pay a $30 million fine; UBS, which is to pay a $15 million fine; and HSBC, which will pay $1.6 million. All three banks consented to the orders without admitting or denying any of the accusations.
Mark Goodman, head of electronic execution, E&C, at UBS, talks about the latest addition to the bank’s algo suite.
Profit & Loss: UBS recently launched a new algo, called ORCA-Direct. Can you tell us a bit more about the design and logic behind it?
Mark Goodman: ORCA-Direct came about when we were trying to improve the technology available to our FX voice traders as they execute risk in the market. As a general rule, the more liquidity they can access the better, so we made sure that we’re connected to the core ECNs and now have six on our platform
The traditional Markets business model in banking is under pressure, Colin Lambert talks to Imed Souki, global head of FRC trading at UBS, and Christopher Purves, recently appointed head of UBS’ Strategic Development Lab for FRC, about how the bank is responding to a such a challenging environment.
Colin Lambert: UBS recently announced a change in structure for its FX, Rates and Credit (FRC) business, can you outline the new business model?
Imed Souki: There has not been a significant change in the structure of the business, it is really a continuation with me taking sole responsibility for the business today, whereas Chris is tasked with taking it where it needs to be in the future. The client relationship dynamic is changing and we want to ensure we are, and remain, relevant to our clients.
UBS has hired Amit Batavia as director, EMFX trading, in Singapore.
Batavia joins from HSBC, where he spent seven years working on the FX trading team in both Singapore and Hong Kong.
Profit & Loss understands that Ed Pla, managing director and global co-head of ICS execution and clearing at UBS, has left the bank.
Pla, who was named to his role in 2013 after heading UBS’ prime services business for seven years, started with the bank in 1994. He was also chair of FIA, and has stepped down from that role to be replaced in the interim by Jerome Kemp, managing director and global head of futures, clearing and collateral at Citi.
FX post-trade processing network provider Cobalt has appointed FX industry veteran Darren Coote as managing director.
Coote has been working with Cobalt since the end of 2017 as a strategic advisor and will now take on responsibility for the day to day management of the company. The firm says the appointment comes at a key time for Cobalt as the company launches and looks to significantly scale its business. Coote brings over 25 years’ experience in the FX business to Cobalt.
Sucden Financial has appointed Kirsty Gillies as global head of e-FX sales as it seeks to further enhance its presence across worldwide FX markets.
Gillies joins Sucden Financial after spending eight years at UBS, where she held the position of executive director. She was responsible for running its e-FX sales team in London, having begun her career at Barclays Capital.
Reporting to co-heads of e-FX Peter Brooks and Wayne Roworth at Sucden Financial in London, Gillies will be responsible for “elevating its sales strategy in order to generate new business and solidify Sucden Financial’s presence across worldwide markets”.
Cboe FX announces today that UBS is acting as a Central Credit Intermediary (CCI) for certain counterparties wanting to access its platform, with an eye to bringing on more liquidity from regional banks.
Under the new arrangement, regional banks or other financial institutions that might have limited bilateral credit can leverage UBS as a spot FX intermediary to alleviate this hurdle, settling all trades exclusively with UBS. The potential benefit of this for these institutions, according to the exchange, is that they will gain exposure to a greater number of Cboe FX participants despite the absence of direct credit relationships.
Equities analysts at UBS have issued a research report on the merger between CME Group and NEX Group, stating that while they are confident in the potential upsides to this deal, the benefits might not start to materialise for at least a year.
Having previously downgraded CME shares from “Buy” to “Neutral”, the UBS analysts Alex Kramm and John Goode decided to maintain the current rating, with an unchanged 12-month price target of $204 per share. At the time the report was issued, CME shares were trading at $189.51.
Gaurav Malhotra has joined Barclays in Singapore as director with responsibility for the e-FX business in the Asia Pacific region, Profit & Loss understands.
The move represents a return to the firm for Malhotra who worked for Barclays for six years, latterly as head of e-FX spot trading for Asia Pacific, before moving to UBS in Singapore. Having spent more than seven years at UBS, Malhotra left the Swiss bank earlier this year to return to Barclays. The move continues Barclays' FX build out.