Sign of the times, non-bank market marker XTX hires Zar Amrolia from the ‘mighty’ Deutsche bank


As banks continue to withdraw risk capital from market-making, we are seeing the continued rise of the non-bank market makers.

Firms that invest hugely in advanced low latency trading technology, that stand ready to commit their own capital to provide tight spreads and deep executable liquidity across FICC markets, from futures to rates and swaps and FX.

So it is perhaps fitting that after more than a decade building the ‘mighty’ Deutsche Bank’s FICC franchise to global dominance, that Zar Amrolia, the ex-Head of FICC is leaving the bank to join XTX Markets as co-CEO. XTX was recently spun out from hedge fund GSA Capital.

Commenting on the hire, Alex Gerko, CEO and former FX quant trader at Deutsche said:

“I am delighted to have Zar join XTX. He is an industry veteran who has added considerable value to the FX and fixed income markets during his career,… additionally we are both keen advocates of utilising technology to benefit the market ecology and increase transparency and efficiency for the end-user.

Non-bank market makers such as XTX and Virtu Financial and others, will in addition to providing liquidity to venues, look to extend their reach, leveraging their own investment in trading technology to provide more complete FX solutions to downstream regional banks.

Those banks, who have traditionally been serviced by the global players such as Deutsche, may well find that non-bank market makers can offer similar if not superior liquidity in some cases, and even license them technology to use within their own eCommerce solution stack – interesting times.

Nasdaq prepares to launch own FX platform


Exchanges can’t seem to get enough of FX!

Following the recent spate of exchanges buying FX platforms (Deutsche Boerse buying 360T, BATS Global Trading buying Hotspot, and talk of ICE buying FastMatch), we now hear Nasdaq is readying the launch of their new FX platform.

NasdaqSo, what’s the attraction?

Well, for one thing size, at $5.3tn/day, it’s by far the largest globally traded market. It’s predominantly a bilaterally traded OTC market, highly liquid and although decentralized and fragmented into multiple liquidity pools, is nonetheless very efficient and increasingly electronically executed.

The size and liquid nature of the market play to the scale and efficiency of exchange infrastructure.

But, this is about more than size. Continue reading

Markit to consolidate position in FX Trade processing with Dealhub acquisition


Just spotted this on Bobsguide, a very interesting development.

Markit Markit has agreed to acquire Dealhub, the 55 strong UK company that provide FX solutions to banks, brokers and other financial market participants around market connectivity, trading services and trade processing.

The acquisition comes less than two weeks after Markit’s own MarkitSERV announced the launch of its new ‘centralised FX trade confirmation service’. The Dealhub transaction, looks highly complementary, and will enable Markit to rapidly consolidate its position in this space.

As the industry continues to innovate, and in response to evolving FX regulations, there will naturally be increased demand for efficient, scalable and innovative centralised FX solutions, that provide the market connectivity to the various venues, credit-hubs, settlement systems, trade repositories, clearing houses with the associated regulatory reporting needed to enable participants to effectively manage their FX business.

According to the press release; the acquisition will enable Markit to offer customers a comprehensive solution for FX across venue connectivity, trading services, trade confirmation and management, clearing and regulatory reporting.  It will also expand Markit’s customer base among banks, brokers and asset managers in the FX markets.

Brad Levy, managing director and head of Markit’s Processing division, said:

“DealHub is a great company and highly complementary to Markit’s growing FX processing business.  This acquisition adds depth to our FX offering while bringing an exciting set of trading solutions to Markit.  Connecting DealHub’s technology to our network will accelerate centralisation of FX trade processes, making it easier for customers to transact.”

Dealhub

Peter Kriskinans, founder and chief executive officer of DealHub, said:

“We are excited about joining Markit since our businesses are so complementary.  Markit’s scale and global reach will allow us to better support our customers and will also accelerate innovation and further development of our technology.”

DealHub’s customers include global banks, regional banks, interdealer brokers, FX electronic trading venues and asset managers.  The company has approximately 55 people based primarily in London, with additional offices in New York and Singapore.

FX Platforms: July 15 volumes down ranging from -5.5% to -26% for major platforms, as summer doldrums take hold.


The summer slowdown in FX platforms volumes has certainly kicked in, with all platforms showing falls in Jul15.

Among the Top Tier platforms, falls ranging from Reuters Spot with $101bn in July the fourth consecutive monthly fall in volumes (lowest since Jul 14), down -6.5% from the $108bn in June, EBS at $82.1bn in July (lowest since Jun 14), down a far larger -18.6% from the $101bn in June and CME Futures (now included in my analysis) with $91.6bn in July (lowest since Aug 14), down a massive -26% from the $123bn in June.

However, all the Top Tier platforms still show year on year gains, ranging from Reuters +2.3% to EBS up +16.3% and CME up a huge +25.7% compared to Jul 14.

Whilst among the second tier platforms, Continue reading

HotSpot FX to offer free trading till year end, whilst ADV hit 2.5 yr low


BATS Global Markets, who bought HotSpot FX earlier this year, has today announced plans to offer free FX trading till the end of the year once their new European matching engine when it goes live next month.

BATS has a reputation for driving low-cost execution, and this move is part of their initiative to drive down the costs of execution as the look to gain market share.

According to Chris Concannon, CEO of BATS: Continue reading

EBS and FXall looking to service Corporate Treasurers – so where does that leave bank SDPs?


The two main FX platform providers, ICAP’s EBS BrokerTec and ThomsonReuters have both announced new multi-dealer offerings to better service corporate treasurers.

EBS BrokertecEBS BrokerTec has announced they are integrating ICAP’s My Treasury, their fully disclosed relationship based multi-product, multi-bank, multi-fund, multi-currency solution for corporate treasurers into the EBS platform. The new offering will be called EBS Treasury, and will be available later this year.

EBS Treasury will offer: FX spot, FWD, Swaps, with FX pricing from EBS Direct. Trading will be provided by Streamed RFQ (request for stream), which is a new addition to EBS Direct’s execution functionality. The streamed RFQ will allow banks to stream tailored prices to corporates. EBS Treasury will improve efficiency for corporates that currently source FX liquidity and money market products from multiple providers. EBS Treasury will be designed to integrate seamlessly into existing treasury management systems.

Justin Meadows, CEO of MyTreasury,  said: Continue reading

New management team at merged EBS BrokerTec


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

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