Thomson Reuters FX vols for Oct 2014: Down 10.4pct at $373bln/day


Thomson Reuters has released Oct 14 volumes for their FX platforms, which show an overall -10.4% drop in volumes, with Spot FX down a smaller -6.4%, in contrast to the strong performance from EBS last week which showed a healthy +10.2% gain in the same period.

Detailed volumes for the main platforms are now as follows: Continue reading

Regulators hit five leading banks with FX manipulation fines of over $3bln


The US (CFTC), UK (Financial Conduct Authority) and Swiss (Finma) regulators delivered a concerted and coordinated attack on the manipulations that have dogged the FX market for too long. The three regulators have hit five top global FX banks with fines totally over $3bln, but there is certainly more to come.

The banks: Citi, HSBC, JPMorgan, RBS and UBS  (Barclays are negotiating their own settlement with regulators), are all accused of manipulating the FX benchmark fixings, front running client orders and collusion. The authorities have also released what amount to damning transcripts from private FX chat rooms that clearly show that traders at these banks were colluding and front running client orders.

CFTC has released transcripts from the private FX chat rooms used by the traders, whilst the UK FCA provides similar examples of manipulation including a number of videos with graphics explaining what went on in the chat rooms ahead of the fixings, below is a visual from the video Continue reading

EBS & Hotspot FX vols Oct 2014: EBS up 10pct whilst Hotspot down 10pct!


EBS the FX platform owned by ICAP saw a strong performance in Oct 2014, with daily volumes rising 10.2pct to $129.9bln/day, the highest volumes since Feb 13 as volatility returns to the FX markets. Although at same time Hotspot (whose owners Knight Capital Group KCG are looking to sell the platform), saw Oct 14 daily volumes drop by 10.3pct to $34.3bln/day.

Actual figures for platforms are as follows: Continue reading

CLS FX vols Sep 14: Record vols up $1Trn/day (+21.2%) to $5,940bln/day


Confirming the increased vols seem from the major FX platforms, the FX industry settlement platform CLS, today reported Sept 2014 figures, which saw volumes shoot up by $1trn/day to a new record of $5,940bln/day.

Details from the platform and charts are as follows: Continue reading

Platform FX vols Sept 2014: Strong rebound for all major platforms, led by EBS +38%


FX vols of the major platforms showed solid gains in September, led by EBS which was up +37.9%, Thomson Reuters Spot up +34.6%, and Hotspot up+32.3% in Sept.

Detailed volumes were:

EBS $117.9bn/day in Sept, up +37.9% on Aug, and up +45.2% compared to Sept 13 level of $81bln/day.

Hotspot: $38.2bn/day in Sept, up -32.3% on Aug, and up +33.2% compared to Sept 13 level of $29bln/day.

Reuters total: $418bn/day in Sept, up 17.7% on Aug, and up 33.1% compared to Sept 13 level of $314bn/day.

Reuters Spot: $144bn/day in Sept, up 34.6% on Aug, and up 20.5% compared to Sept 13 level of $120bn/day.

Individual volume figures and charts for the platforms are summarized below: Continue reading

Regional banks upgrading single-dealer platforms to protect and grow market share (according to new research from Celent)


Interesting new research paper from Celent; FX Trading Platforms: Models Converge, and Competition Heats Up, examines trends in the FX markets, the blurring of traditional market structure boundaries, the evolution of Single-Dealer Platforms, and looks at the growing competition between platforms.

Some of the themes the paper are: Continue reading

Fixing the Fix – final report from FSB


The Swiss based Financial Stability Board (FSB), has today published their final report and recommendations for Foreign Exchange Benchmarks, which follows an initial consultative report published in July.

The report sets out a number of recommendations for reform in the FX markets and in the benchmark rates that have been identified as pre-eminent by market participants – in particular, the WM/Reuters (WMR) 4pm London fix produced by the WM Company. These recommendations fall into the following broad categories:

  • the calculation methodology of the WMR benchmark rates;
  • recommendations from a review by the International Organization of Securities Commissions (IOSCO) of the WM fixes – this review is included in the report published today, and is also being published separately by IOSCO;
  • the publication of reference rates by central banks;
  • market infrastructure in relation to the execution of fix trades; and
  • the behavior of market participants around the time of the major FX benchmarks (primarily the WMR 4pm London fix).

Summary of recommendations Continue reading

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