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

Central Bank FX Survey data: What’s happening to eFX ratios? Comparing London and NY


In my previous post, I looked at the Bank of England (BofE) FX semi-annual FX survey data.

In this post, I want to look at some of the interesting changes in eFX ratios – the proportion of total FX that is traded electronically, that is the sum of single+Multi-dealer+ECN as a percentage of total volume. We will look at London and NY, and compare and contrast overall eFX ratios, and eFX ratios by product and by client segment. Continue reading

BofE FX Survey data: London FX vols down 8% in Apr 15, whilst USD/CNY vols +25% (now 9th largest curr pair)


The Bank of England today released their latest semi-annual FX turnover survey results for Apr 2015.

Highlights on London FX volumes for Apr 2015

  • Total FX vol  of $2,481bn/day, fell -8% compared to the record level seen in Oct 2014, but still showed a +5% YoY gain
  • Spot FX vol fell -13% to $973bln/day compared to Oct 2014, although still up some +24% YonY
  • USD/CNY activity increased by 25% in April 2015 to $43bln/day, a new record high, and is now the 9th largest FX pair.
  • USD/JPY vol fell -25%, returning back to October 2013 levels.
  • MDP vol fell –16% compared to Oct 2014 at $406bn/day (+12% YonY)
  • SDP vol fell -12% from Oct 2014 at $276bln/day (still down -11% YonY)
  • Ratio of SDP/MDP vols rose slightly (in favor of SDPs) to 68%, compared to the low of 65% seen in Oct 2014

Volumes never really recovered following the Swiss National Bank’s EURCHF event in January. Below are full details, charts and some interesting observations on the data. Continue reading

Poll results: Last look, lack of time-stamp and internalisation of flows – Which practice is most open to abuse?


A few weeks ago, we explored last look’, ‘time stamping’ and ‘internalisation’three practices that The Fair and Effective Markets Review FEMR, felt needed improved controls to help restore trust in FICC markets.

At the end of the post, I opened a poll asking buyside and sellside readers: “Which of the three practices are most open to abuse, resulting in sub-optimal client execution?”

The results, though limited and highly unscientific, are nonetheless interesting, as they highlight the almost diametrically opposite opinions of buyside and sellside. Buyside readers, overwhelmingly thought that the practice of ‘last-look’ was most open to abuse.

Whereas sellside readers, who are at the sharper end of this, felt that although last-look was open to abuse, ‘lack of time stamping orders/trades ‘was far more likely to result in sub-optimal client execution.

Poll results on Sellside practicesPoll results from unscientific and limited study asking “Which of the three practices are most open to abuse, resulting in sub-optimal client execution?”

EuroMoney 2015 FX Rankings: Citi #1 again, but top banks continue to lose market share


The annual EuroMoney FX ranking for 2015 have just been released, and they make interesting reading.

Key findings from the EuroMoney 2015 survey:

  • Citi takes 1st place, for the 2nd year running, with a market share of 16.11% (slightly up from 16.04% in 2014) and more than doubling its 7.49% share from 2008. (see here for Citi Velocity post which is built using Caplin technology)
  • JPM sees largest gain in market share of top 15 up 2.1% to 7.65% (5.55% in 2014)
  • UBS see biggest fall in market share of top 15 down -3.58% to 7.3% (10.88% in 2014)
  • Share of top 5 banks shows largest fall down -5.34% to 53.71% (59.05% in 2014)
  • Share of client volume executed electronically 53.2% (up from 40% in 2011) and first time a majority executed electronically
  • HSBC #1 in corporate FX flow (Citi loses top place held since 1976)

But what stands out again, is that the Continue reading

CLS FX Settlement platform Mar15: Vols up +5.7% to $5,150bln/day


The CLS settlement system has reported an +5.7% increase in the average daily value of FX trades settled through their platform in Mar 15, taking volumes back up to $5,150bln/day.

The monthly increase being far lower than that reported last week by the major FX spot platforms which saw increases ranging from 15% to 22% for the major platforms.

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

New Caplin white paper ‘Trading On The Move’


Caplin Systems has published a new white paper entitled Trading On The Move, which examines the growing demand for, and use of mobile devices in the capital markets.

The paper authored by Patrick Myles, Caplin CTO explores the mobile revolution and looks at how it is being applied to the capital markets.

Drawing on results from a recent Caplin Systems e-Trading survey, the paper identifies current supply-demand imbalances between what the buy-side say they want, and what the sell-side think their clients want, compared to what they currently provide to clients.

Responses from the survey suggested that: Continue reading

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