Posted on September 8, 2013 by Paul Blank
The Bank of International Settlements (BIS), has released the latest 2013 Triennial Survey survey of global FX market volumes (the most authoritative survey of global FX market activity)
Headline items from the survey are:
- Global FX turnover was 34% higher in April 2013 than in April 2010, with average daily turnover of $5.345 trillion/day compared to $3.971 trillion/day
Daily FX volume by product ($ billions)
Filed under: FX, Paul Blank, Survey Results | 2 Comments »
Posted on August 5, 2013 by Paul Blank
What’s the value to a bank of seeing client FX flows?
Any FX trader worth their salt, will swear there is value in seeing ‘certain’ client flows, and greater value if you see it first, and can act on it fast!
Intuitively we know this value derives from the intelligence asymmetry gained by the trader or more correctly today, by the bank’s pricing engines, in terms of their ability to rapidly analyze client flows, and ‘deduce’ trends based on historic flows from that client, and the aggregate of flows from that client’s segment and integrating or matching those against uncorrelated flows from different client segments.
Filed under: FX, OTC, Paul Blank, Survey Results | 1 Comment »
Posted on July 31, 2013 by Paul Blank
An excellent update to Tabb Group’s SEF barometer has just been published, which was based on a survey of over 150 participants (from dealers, buy-side and vendors).
Key findings are:
- Discontent is high on the final outcome of the swap rules, but consensus is low on the reasons why
- Exchanges are perceived to benefit the most from the new rules, as product standardization drives the swaps market closer to order book trading and accelerates the migration to swap futures (more…)
Filed under: CCP, CFTC, Dodd Frank, Paul Blank, Regulation, SEF, Single-Dealer Platforms, Survey Results, SWAPS | 1 Comment »
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 May 9, 2013 by Paul Blank
Three of the main FX platforms have now reported their April volumes.
Reuters and FXall showed slight falls in volumes, whilst EBS showed a modest 7% increase on March.
The reported volumes are as follows:
EBS continuing the strong recovery that started in January and saw volumes rise 7% to $128bln/day.
Reuters (including spot matching and dealing platforms) reported a modest dip of 1% to $130bln/day, whilst FXall showing a 2% drop to $108bln/day.
Filed under: FX, Survey Results, Web trading technology | Leave a Comment »
Posted on May 9, 2013 by Paul Blank
Yet again the ‘Mighty Deutsche Bank’, takes ’1st place for an impressive 9th consecutive year (2013-05), in the 2013 EuroMoney FX Survey rankings.
- Deutsche take 1st place for 9th consecutive year, and for first time since 2008 reverses the fall in market share, with a 4.26% YoY rise to 15.18% (14.56% last year), compared to 21.7% in 2008.
- Citi continues to power ahead, with market share up 21.53% YoY to 14.90% (12.26% last year), compared to 7.49% in 2008 (see here for Citi Velocity post which is built on Caplin’s technology)
- Bank America Merrill Lynch (BAML) enter the top ten, up 2 places with a 27.80% YoY gain to 3.08% (2.41% last year)
- Eight of the top twelve banks see fall in market share YoY (lead by Credit Suisse, down to 3.7% from 4.68% last year, a near 21% YoY drop) (more…)
Filed under: FX, Survey Results, Web trading technology | 4 Comments »
Posted on March 21, 2013 by Paul Blank
The report, released yesterday by the Office of the Comptroller of the Currency (OCC) shows US commercial bank trading revenues were $4.4bln in 4th quarter, 73pct higher than the $2.5bln in Q4, 2011.
Summary of the report:
- U.S. commercial banks trading revenues of $4.4 bln in the fourth quarter, 73% higher than $2.5 bln in the fourth quarter of 2011.
- Trading revenues in Q4 of 2012 were 17% lower than Q3 of 2012 revenues of $5.3 bln.
- Credit exposure from derivatives decreased in the Q4. Net current credit exposure fell 3%, or $13 billion, to $386 billion. (more…)
Filed under: OTC, Paul Blank, Survey Results, SWAPS, Web trading technology | Leave a Comment »
Posted on March 7, 2013 by Paul Blank
For a second year running, Barclays has demonstrated its strength in the rates business by taking top place in the EuroMoney 2013 Global Rates Survey.
Whilst a number of banks continue to scale back their FICC activities on the back of tougher regulation from Dodd Frank and higher Basel III capital requirements, banks like Barclays are continuing to invest in their e-trading, portfolio pricing models, and clearing capabilities. (more…)
Filed under: CFTC, Dodd Frank, OTC, Paul Blank, Survey Results | Leave a Comment »
Posted on February 12, 2013 by Paul Blank
The Association for Financial Markets in Europe (AFME) are holding their 8th annual European Market Liquidity Conference in London this Wednesday.
It’s an excellent networking event with great speakers and topics (see here for our comments on last year’s conference) ,which this year include:
Filed under: MiFid, Paul Blank, Regulation, Survey Results | 1 Comment »