Are regional banks ready to offer mobile trading?

Top tier banks have been offering mobile solutions to their institutional clients for a while now, ranging from research and indicative pricing, through to enabling clients to manage existing and in some cases placing new orders. With early compliance and security concerns having been addressed, banks such as Citi and JP Morgan are providing full mobile click and trade functionality.

But what about regional banks, what is their attitude towards mobile trading for corporate customers?

Here at Caplin, we are certainly seeing interest from a number of Continue reading

BofE FX Survey data: FX vols recover in April 14 at $2,758bln/day (+6.6% on Oct 13, and -8.8% YonY) – interesting trends

The Bank of England today released their latest semi-annual FX turnover survey results for April 2014.

Highlights on London FX volumes for April 2014

  • FX vol  of $2,758bln/day, +$171bln/day, which is +6.6% from Oct13 (although still -8.8% YoY)
  • MDP vol of +15% from Oct13 at $362bln/day (+4% YonY)
  • SDP vol -8% from Oct13 at $309bln/day (-16% YonY)
  • Ratio of SDP/MDP vols at new low of 85% from 107% in Oct

Below are full details, charts and some interesting observations on the data. Continue reading

Caplin’s ‘award winning technology’ helping regional banks accelerate delivery of SDPs

We have discussed before how regional (commercial) banks have been ‘upping their game’, investing in talented e-commerce people, enhancing their back-end pricing technology and importantly investing in new client facing single-dealer platforms (SDPs).

As a result of this focused investment, regional banks have been steadily gaining market share, sometimes at the expense of the large global banks as they deliver ever greater value to their client franchise through their SDPs.

This trend can be clearly seen in the chart below Continue reading

FICC broken business model? Barclays down.

Further evidence that the FICC business model of investment banks appears to be ‘broken’ came today with Barclays announcing a 41% decline in FICC revenue.

By contrast UBS, who also reported today, and who for the past two years have been scaling back much of their FICC business reported a small 8% drop in FICC revenues compared to Q1 2013. With its Investor Client Services (ICS) group (slide 12 in the results), which includes Fixed Income, FX rates and credits, showing a very impressive 30% increase on 4th quarter 2013.

The confluence of regulatory changes coming from Dodd Frank and EMIR as well as the increased capital costs under Basle and the ban on proprietary trading imposed by Volcker rules, have resulted in investment banks recalibrating their operating models. Many are pulling back from or ceasing to operate in capital-intensive businesses.

As a result, banks like Continue reading

Danske Bank launches new SDP

Danske Bank has launched a new Single-dealer platform, and joins the growing rank of regional banks investing in SDPs designed to protect and grow their client franchises, by creating a strongly branded client-centric ‘relationship channel’ for their clients.

According to EuroMoney’s 2013 FX league tables, Danske are ranked 22nd globally, and according to Danske’s website are the top ranked FX bank in Scandanavia.

The new FX single-dealer platform called Danske OneTrader , is aimed at their corporate and institutional clients, and was unveiled last month at the ACI conference in Berlin.

Talk of the new platform came just over a year ago when Continue reading

Deutsche partners with FIREapps and how SDPs can help

Deeper the insight a bank has into their corporate customers cash-flows and exposures the better the FX hedging solutions they can provide. However, even large multinational corporates often struggle to identify exposures in a timely manner.

So it’s interesting to see that Deutsche bank the global leader in FX has partnered with FIREapps to provide customers with solutions that identify and manage their overall currency exposures. FIREapps integrates with customers enterprise resource planning (ERP) systems, and Deutsche integrates with FIREapps.

According to Fabio Madar, Global Head of Corporate FX Sales at FIREapps:

Continue reading

Regional Banks investing in SDPs

We have discussed here a number of times how regional (commercial) banks have been ‘upping their game’, and investing in talented e-commerce people, better back-end pricing technology and importantly investing in new client facing single-dealer platforms (SDPs).

This investment enables the regional banks to better service their commercial clients and provide differentiated ‘workflow’ based solutions, that not only protects, but has been instrumental to them growing their client franchise, and gaining market share at the expense of the top global FX banks.

So, it’s interesting to see this theme is being picked up by Continue reading


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