On the one hand, FX trading venues are increasingly looking for ways to package and sell their market data, creating new revenue streams for the business. On the other, seemingly all of them are investing in developing trade analytics tools that will enable users of these platforms to derive greater insights from their trading activity and more effectively evaluate the liquidity and pricing available there.
I can’t count how many times I have expressed the opinion in this column that banks rolled over on too many occasions when faced with a fine or lawsuit, but I have to say that my sense from talking to senior people in FX businesses now is that those days are over.
The Justice Department is having more success at prosecuting banks than going after the bankers who work for them.
Keefe, Bruyette & Woods has estimated first quarter trading revenues for fixed income and equities across the nine largest investment banks. The majority of the numbers are sobering on the surface, but it’s important to recognize that the estimated totals are being compared to Q1 of 2018, when trading conditions were ideal.
This week’s edition takes a look back as managing editor Colin Lambert is joined by P&L’s founder Julie Ros, 20 years to the day since she incorporated Profit & Loss. The names of the leaders in e-FX may have changed, but the two podcasters agree that there is much that remains the same, in both the single and multi-dealer platform world especially.
Sometimes machines are only as smart – or dumb – as the humans who program them. Hedge fund investors learned that the hard way last year when data-crunching computers that invest $220 billion based on historical price trends did worse than most other managers, robot or human.
When you work for an investment bank, your manager derives vicarious pleasure from the way you spend your bonus. If there is one thing a manager won’t forget, it’s how much he (or she) paid you.
CFTC Chairman Christopher Giancarlo discusses London’s importance to the global derivatives markets, the need for continuity in US and UK markets in the face of Brexit, and the performance of Bitcoin futures.
Invesco, Wellington Management and Dodge & Cox are pushing the Wall Street regulator to allow them to apply Mifid II cost transparency rules in the US, a move that underlines the growing global impact of the EU legislation.
More questions will rightly be asked about the competency of financial regulators after the UK City watchdog last week said it had uncovered further evidence of problems with two landmark reform packages intended to improve standards across the European investment industry.
The Financial Conduct Authority has been rocked by a sharp rise in the number staff making accusations of bullying and harassment at the powerful UK watchdog, raising questions over the FCA’s ability to stamp out misconduct in the City.
European regulators have stepped up preparations for the risk that the UK leaves the EU abruptly at the end of the month, issuing a licence to ensure that investors in Irish markets can continue to settle trades in London.
Corporate finance teams are rifling through loans, investments and derivatives to assess the potential fallout from moving to a new benchmark for short-term borrowing costs.
Tech providers are emerging from all corners as the final phases of initial margin rules closes in, which are expected to capture over 1,000 buy-side and sell-side firms over the next 18 months.
When Quadriga Fintech Solutions Corp. founder Gerald Cotten died, account holders feared the encrypted access keys needed to recover C$190 million ($143 million) of cryptocurrencies held by the exchange in offline storage could be lost forever. It looks now like the storage Quadriga is known to have used – dubbed cold wallets – has been empty since April.
Gemini steps up efforts to reach incumbent crypto market players by joining a network of brokers, institutions, exchanges and clearing and settlement houses.
Institutional investors, including public pension funds, have begun taking bets on fledgling funds, which invest heavily in cryptocurrency and blockchain-related companies.
A technical indicator that incorporates both bitcoin’s price and trading volume is signalling the cryptocurrency may have bottomed in December.
The biggest move that 360T made last year was the acquisition of GTX for $100 million. The logic behind this purchase was that because GTX is primarily an interdealer platform that is spot FX focused and US-centric it can help round out 360T’s more dealer-to-client, European-centric FX business.
High-speed trading firm Virtu Financial has officially closed its $1 billion acquisition of agency brokerage ITG, after announcing plans to merge in November.
Anecdotal evidence that February was a much quieter month for FX markets is reinforced by the first set of average daily volume data reported by FX trading venues with all showing a month-on-month decline.
Europe’s market regulator has approved DTCC’s in Ireland as the post-trade provider plans its strategy for a potential no-deal Brexit. At the same time, the European Securities and Markets Authority confirmed that Bloomberg’s registration has been withdrawn on request with its clients transferred to alternative providers.
Denmark’s Jyske Bank has selected New Change FX (NCFX) as an independent data source for its capital markets business. The bank’s Markets division will use the data from the independent entity to analyse its FX business.
The time-stamped valuation data can help firms monitor intraday and historic transaction costs across interest rate, equity, FX, credit, commodity and structured product OTC derivatives.
Sterling gained on Monday on signs some pro-Brexit lawmakers were increasingly willing to compromise with Prime Minister Theresa May, increasing the chances the British leader will get her Brexit deal through parliament next week.
The dollar consolidated gains on Monday after posting its biggest monthly rise in four months, as low volatility prompted investors to buy the currency, particularly against the yen.
This month contains important deadlines that have long
been flagged as having the power to spark renewed financial stress.FX:
The Complexities of Commodity-Linked Currencies – EuromoneyMacro and monetary policy factors are affecting
some currencies more than traditional commodity triggers.