Posted on July 30, 2015 by Paul Blank
Back in Dec 14, ICAP announced they were merging their two leading trading platform business divisions EBS (FX) and BrokerTec (Rates) into a single operation called EBS Brokertec Markets. Today the firm announced a new executive management team to drive the combined business forward.
According to the company, this will allow the business to leverage key functions across the division, including combined product, technology and sales groups. As a result, the central limit order book (CLOB) businesses of EBS Market and BrokerTec have been combined into a single business division now referred to as EBS BrokerTec Markets. In addition, the BrokerTec CLOB business will now be referred to as BrokerTec Market.
EBS BrokerTec Markets will be led jointly by Dan Cleaves and Darryl Hooker as Co-Heads. Dan most recently served as Continue reading
Filed under: EBSDirect, FX, ICAP/EBS, Paul Blank | Leave a comment »
Posted on July 29, 2015 by Paul Blank
In my previous post, I looked at the Bank of England (BofE) FX semi-annual FX survey data.
In this post, I want to look at some of the interesting changes in eFX ratios – the proportion of total FX that is traded electronically, that is the sum of single+Multi-dealer+ECN as a percentage of total volume. We will look at London and NY, and compare and contrast overall eFX ratios, and eFX ratios by product and by client segment. Continue reading
Filed under: FX, Paul Blank, Survey Results | Leave a comment »
Posted on July 28, 2015 by Paul Blank
The Bank of England today released their latest semi-annual FX turnover survey results for Apr 2015.
Highlights on London FX volumes for Apr 2015
- Total FX vol of $2,481bn/day, fell -8% compared to the record level seen in Oct 2014, but still showed a +5% YoY gain
- Spot FX vol fell -13% to $973bln/day compared to Oct 2014, although still up some +24% YonY
- USD/CNY activity increased by 25% in April 2015 to $43bln/day, a new record high, and is now the 9th largest FX pair.
- USD/JPY vol fell -25%, returning back to October 2013 levels.
- MDP vol fell –16% compared to Oct 2014 at $406bn/day (+12% YonY)
- SDP vol fell -12% from Oct 2014 at $276bln/day (still down -11% YonY)
- Ratio of SDP/MDP vols rose slightly (in favor of SDPs) to 68%, compared to the low of 65% seen in Oct 2014
Volumes never really recovered following the Swiss National Bank’s EURCHF event in January. Below are full details, charts and some interesting observations on the data. Continue reading
Filed under: FX, MDP, Paul Blank, Single-Dealer Platforms, Survey Results | Leave a comment »
Posted on July 27, 2015 by Paul Blank
In the recent release of ‘The Fair and Effective Markets Review’ FEMR, into how to restore trust in FICC markets, the report made the following recommendations in sections 4a and 4b:
4. Launch international action to raise standards in global FICC markets
a. Agree a single global FX code, providing: principles to govern trading practices and standards for venues; examples and guidelines for behaviors; and tools for promoting adherence. The Review strongly welcomes the recent announcement by central banks to work towards those goals; (BIS and national central banks including the Bank of England 4.3.3)
b. As part of that work, improve the controls and transparency around FX market practices, including ‘last look’, ‘time stamping’ and ‘internalisation’ (BIS and national central banks including the Bank of England 4.3.3)
Following the recommendations The Bank of International Settlements (BIS), has now Continue reading
Filed under: FX, Paul Blank, Regulation | Leave a comment »
Posted on July 27, 2015 by Paul Blank
A few weeks ago, we explored last look’, ‘time stamping’ and ‘internalisation’, three practices that The Fair and Effective Markets Review FEMR, felt needed improved controls to help restore trust in FICC markets.
At the end of the post, I opened a poll asking buyside and sellside readers: “Which of the three practices are most open to abuse, resulting in sub-optimal client execution?”
The results, though limited and highly unscientific, are nonetheless interesting, as they highlight the almost diametrically opposite opinions of buyside and sellside. Buyside readers, overwhelmingly thought that the practice of ‘last-look’ was most open to abuse.
Whereas sellside readers, who are at the sharper end of this, felt that although last-look was open to abuse, ‘lack of time stamping orders/trades ‘was far more likely to result in sub-optimal client execution.
Poll results from unscientific and limited study asking “Which of the three practices are most open to abuse, resulting in sub-optimal client execution?”
Filed under: FX, Paul Blank, Regulation, Survey Results | Leave a comment »
Posted on July 26, 2015 by Paul Blank
As first mentioned last month, the multi-bank FX platform 360T has now been sold to exchange operator, Deutsche Boerse for €750m ($805m), beating off interest from rival exchange operator CME Group.
The transaction, which was announced today (Sunday), is the latest in a string of recent FX platform transactions, which I guess started with FXall being bought by ThomsonReuters back in 2012, and which may well see FastMatch as the next target, with exchange operator ICE as rumored suitor.
Table showing relative costs of platforms in terms of (A) $bln daily vol, (B) cost/institutional client
Although not confirmed, I would think CME group was attracted to 360T’s dealer-client franchise. As it played to the client clearing capital efficiency proposition that CME has been developing, helping to facilitate bank-client trading relationships by mitigating counter-party risk, rather than competing for the execution of the transaction.
So, having lost out on 360T, it’s certainly possible that CME may cast an eye over Fastmatch as it would also open new clearing opportunities.
Filed under: Client Clearing, CME, FX, ICE, Paul Blank, Regulation | 4 Comments »
Posted on July 23, 2015 by Paul Blank
FX SpotStream the multi-bank platform has joined the growing number of platforms that are releasing new HTML5 trading GUIs.
The platform, which runs as a market utility is owned by a consortium of leading FX banks, providing multi-bank direct Api and GUI infrastructure to enable top-tier liquidity providers to easily and at low-cost distribute their liquidity to downstream price takers.
According to Alan Schwarz, SpotStream CEO: Continue reading
Filed under: EBSDirect, FX, HTML5, smartTrade, Web trading technology | Leave a comment »