GFXC Updates on Working Group Progress
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GFXC Updates on Working Group Progress – Profit & Loss
The Global Foreign Exchange Committee (GFXC) has released a new illustrative example on “cover and deal” trading activity to be included in the FX Global Code in a future update, which highlights so-called “under-filling” of client orders using the last look window. The negative example highlights that a participant accepting an order on the understanding that it is operating in “cover and deal” mode and therefore not assuming any market risk, cannot execute the full amount with its own liquidity provider and then under-fill the client because the market has moved.
Read MoretrueEX to Shut Swaps Trading Platform
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trueEX to Shut Swaps Trading Platform – Risk.net (subscription)
Interest rate swaps trading platform trueEX will close in less than a fortnight, reinventing itself as a cryptocurrency derivatives exchange. The platform’s exit leaves the swaps market in the hands of incumbents: broker-run platforms continue to dominate interdealer trading of interest rate swaps, while dealer-to-client trading will take place on Bloomberg and Tradeweb.
Read MorePrimary Venues See Volume Increase from May
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Primary Venues See Volume Increase from May – Profit & Loss
Three primary FX trading venues saw increased month-on-month activity in June 2019, but as was the case with other platforms that reported earlier this month, they were all down year-on-year with the exception of Refinitiv’s non-spot FX products.
Read MoreDeutsche Bank to Quit Equities Trading and Cut 18,000 Jobs in Major Overhaul
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Deutsche Bank will exit global equities trading, cut 18,000 jobs and transfer €75bn of risk-weighted assets into a so-called bad bank as part of a major overhaul of the German lender’s business. The bank has also entered into preliminary talks over the sale of its electronic trading and prime finance divisions with French rival BNP Paribas.
- Deutsche Bank Outlines Significant Strategic Transformation and Restructuring Plans – Deutsche Bank
- Deutsche Bank Shares Rise after Shake-Up to Cut 18,000 Jobs – Reuters
- After Deutsche Bank Cuts, Where Will the Growth Be? – Reuters
- Inside Deutsche Bank’s Cuts: Christian Sewing’s Private Letter to Staff – eFinancialCareers
Banks and Prop Shops Expect More Trading Tie-Ups
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Banks and Prop Shops Expect More Trading Tie-Ups – FX Week (subscription)
Bank and non-bank dealers expect electronic trading to continue spreading – bringing the two groups of firms into more frequent competition, but also creating chances for them to work together.
Read MoreSwitzerland-EU Row Shows Equivalence Will Not Work for UK
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Switzerland-EU Row Shows Equivalence Will Not Work for UK – GlobalCapital
The EU’s decision not to extend equivalence to Swiss exchanges and Switzerland’s subsequent retaliation is a perfect example of why the measure is an insufficient framework for future EU-UK financial services relations after Brexit.
Read MoreFX: Brokers Cannot Afford an Identity Crisis
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FX: Brokers Cannot Afford an Identity Crisis – Euromoney
The recent withdrawal of Stater Global Markets from the prime-of-prime broker market has underlined the need for providers to continue to prove their value to clients.
Read MoreGiancarlo in the Frame for Mark Carney’s Job
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Giancarlo in the Frame for Mark Carney’s Job – Financial News (subscription)
Christopher Giancarlo, the high-ranking US financial regulator, has emerged as a surprise candidate for the top job at the Bank of the England.
Read MoreEU Plans to Tighten Derivatives Rules Rankles in the US
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EU Plans to Tighten Derivatives Rules Rankles in the US – Financial Times (subscription)
At a meeting held by the House agriculture committee on Wednesday US lawmakers lined up to tear into plans by the European Union to tighten supervision of its derivatives markets after Brexit. Brussels wants more direct oversight of clearing houses, which safeguard the financial system by acting as counterparties between sellers and buyers of shares or derivatives.
Read MoreUS Lawmakers Called EU Derivatives Markets Plans ‘Retribution’
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US Lawmakers Called EU Derivatives Markets Plans ‘Retribution’ – Financial Times (subscription)
US lawmakers have hit out at new plans from Brussels to toughen supervision of the global derivatives markets in the wake of Brexit, labelling the EU’s proposals as “retribution”.