Posted on November 7, 2013 by Paul Blank
The three main OTC FX platforms have now reported their Oct 13 volumes.
All three platforms saw decline in daily volumes in October, with Reuters and EBS both recording multi year (record low) trading volumes.
Reuters matching and conversational dealing platforms showing the largest fall, down $13bln/day (-11.8%) at $97bln/day from $110bln/day in September, and also showing the largest YoY drop of -19.2%.
EBS which as we reported earlier this week, also hit new all time lows in daily volumes which were down $4bln/day ( -5.2%) at a new low of $77bln/day, a drop of -16.8% YOY.
Whilst FXAll volumes were $5bln/day (-4.5%) lower at $106bln/day down from $111bln/day in September, although still up some 12.8% YOY.
Filed under: FX, MDP, Paul Blank | 2 Comments »
Posted on July 30, 2013 by Paul Blank
The Bank of England today released their latest semi-annual FX turnover survey results for April 2013.
- Record Daily FX vol of $2,547bln, +26% on Oct 2012, (+26% YoY)
- Spot vols +38% to $1,006bln/day
- Rise driven by huge increase in USD/JPY activity up over 100% to $503bln/day – 2nd most active curr pair traded
Execution via Single Dealer Platforms (SDPs) still exceeds Multi Dealer Platforms (MDPs), but MDP volumes surging
- SDP vols + 32% driven by +58% increase in use by Reporting Dealers and +18% by banks
- MDP vols +69% driven by +77% rise in Non-Bank Financial Institutions and +71% by reporting dealers
Filed under: FX, MDP, Paul Blank, Single-Dealer Platforms, Survey Results | Leave a Comment »
Posted on July 17, 2013 by Paul Blank
Latest research from GreySpark looks at the regulatory and structural changes that are impacting the global FX market, and draws some interesting conclusions.
The report Trends in FX Trading 2013 (which I haven’t seen, other than in abstract here) looks at the evolution of market structure and reasons behind the decline in dominance of the wholesale dealer-dealer platforms (D2D), and the rise in importance of the dealer-client (D2C) platforms, both Single-Dealer Platforms (SDP) and Multi-Dealer Platforms (MDP).
From what I can see, the paper draws the conclusion that these trends will lead to the development of an equity style All-to-All (A2A) market structure, presumably characterised by central limit order books (CLOBs). Possibly driven by regulation and capital efficiency needs, making it less attractive for banks to market make, although not sure that should follow?
As the abstract from the report states: (more…)
Filed under: BIS, FX, MDP, Paul Blank, Single-Dealer Platforms, Survey Results, Web trading technology | 1 Comment »
Posted on March 25, 2013 by Paul Blank
Asian Investor has an interesting article regarding the rise of fixed income trading on SDPs.
Although Bloomberg is still the dominant FI platform in the region (trading up to 70% of volumes), Asian Investors are starting to migrate flows to Single-Dealer Platforms for US Treasuries and Sovereign bonds.
According to Gavin Ottery, head of fixed income e-commerce sales at UBS in Hong Kong.
Hundreds of clients in Asia-Pacific have migrated from voice to electronic for both regional and global cash products, and electronic fixed income trading volumes in the region continue to increase year-on-year, with 2012 being a record year. (more…)
Filed under: Dodd Frank, MDP, OTC, Paul Blank, Single-Dealer Platforms | 1 Comment »
Posted on March 10, 2013 by Paul Blank
Three of the main multi-bank FX platforms have now reported their Feb volumes.
Reuters and EBS showed continued strength, whilst FXall (also owned by Reuters) recorded a new monthly record.
Filed under: FX, MDP, Paul Blank, Web trading technology | 1 Comment »
Posted on February 18, 2013 by Paul Blank
Reuters, FXall and EBS have now all released their FX vols for Jan 2013, with a strong bounce in volumes.
The largest increase coming from (more…)
Filed under: FX, MDP, Paul Blank | Leave a Comment »
Posted on February 8, 2013 by Paul Blank
FX week has a story here about Multi bank FX Options platform SurfaceExchange in acquisition talks with potential suitors.
FX options, fall under the Dodd Frank SEF mandate, and (more…)
Filed under: Dodd Frank, FX, MDP, OTC, Paul Blank, SEF, Single-Dealer Platforms | Leave a Comment »
Posted on January 30, 2013 by Paul Blank
The Bank of England today released their latest semi-annual FX turnover survey results for October 2012.
- Daily FX vol $1,919bln, down 6% on April 2012, (7% down YoY)
- Spot vols down 6% to $678bln/day
Execution via Single Dealer Platforms (SDPs) continues to outperform Multi Dealer Platforms (MDPs).
Filed under: FX, MDP, Paul Blank, Single-Dealer Platforms, Survey Results, Web trading technology | 7 Comments »
Posted on October 19, 2012 by Paul Blank
Bloomberg’s multi dealer platform FXGO is seeing surge in FX volumes (up 79% YTD, and 65% YoY) according to Tod Van Dam, Bloomberg’s Global Head of FX.
Such performance comes against a backdrop of research from the likes of Celent that Single Dealer Platforms best positioned to dominate FX market, and (more…)
Filed under: Dodd Frank, FX, MDP, Paul Blank, Single-Dealer Platforms, Web trading technology | Leave a Comment »
Posted on October 4, 2012 by Paul Blank
New research from Celent confirms Caplin’s long-held view that Single Dealer Platforms (SDPs) will dominate the FX markets.
Contrary to those predicting that Dodd Frank and Mifid II would signal the death of SDPs, Caplin’s position as outlined in our recent white paper, SDPs in a cleared world is that SDPs will remain the dominant ‘relationship channel of choice’ for clients. (more…)
Filed under: FX, MDP, Paul Blank, Regulation, SEF, Single-Dealer Platforms | 7 Comments »