I have been following the Basel III regulations for some time. As always with regulation of this breadth & importance, there is lot to discuss but it seems there has been an immediate impact on funding for the “real” economy, i.e., project and trade finance. (more…)
I have been reading some excellent research by ClientKnowledge, which compared bank FX profitability across client segments and geographic regions between 2009 and 2010.
So much great information contained in this chart.
The FX technology arms race continues unabated, with the top banks jockeying for position in the global FX rankings.
Leading banks in the global FX business are highly innovative, with a deep understanding of their clients risk management requirements. They also have the ‘luxury of large budgets’ and correspondingly large and talented in-house technical competence required to develop and deploy highly sophisticated functionality spanning the full trade life cycle from pre-trade, execution, through to rich post trade reporting tools targeted to specific client segments.
It’s also the case, that (more…)
The Bank of International Settlements (BIS), has just released the latest 2010 Triennial Survey survey of global FX market volumes (the most authoritative survey of global FX market activity)
Headline items from the survey are: (full report available here)
- Global FX turnover was 20% higher in April 2010 than in April 2007, with average daily turnover of $4.0 trillion compared to $3.3 trillion
- Surge in Spot Activity: The increase was driven by the 48% growth in turnover of spot transactions, which represent 37% of foreign exchange market turnover. Spot turnover rose to $1.5 trillion in April 2010 from $1.0 trillion in April 2007
- Bank to client volumes exceeded Bank to Bank volumes For the first time: Activity of reporting dealers with other financial institutions surpassed inter-dealer transactions (ie transactions between reporting dealers). Other Financial Institutions, a category that includes non-reporting banks, hedge funds, pension funds, mutual funds, insurance companies and central banks, grew by 42%