Posted on July 23, 2015 by Paul Blank
FX SpotStream the multi-bank platform has joined the growing number of platforms that are releasing new HTML5 trading GUIs.
The platform, which runs as a market utility is owned by a consortium of leading FX banks, providing multi-bank direct Api and GUI infrastructure to enable top-tier liquidity providers to easily and at low-cost distribute their liquidity to downstream price takers.
According to Alan Schwarz, SpotStream CEO: Continue reading
Filed under: EBSDirect, FX, HTML5, smartTrade, Web trading technology | Leave a comment »
Posted on July 23, 2015 by Paul Blank
Higher costs of regulatory capital, has resulted in a massive reduction in bond inventory held by primary dealers, and as a result, banks have been withdrawing from capital-intensive market making operations and embracing so-called ‘capital lite’ agency type operating model.
According to a report from McKinsey and Greenwich Associates, broker-dealers will need to leverage e-trading technology far more to assist their clients in liquidity discovery and help them with trade execution, as it has become increasingly difficult to find the ‘other side of the trade’. As can be seen from the graph below Continue reading
Filed under: Corporate Bonds, Regulation, Web trading technology | 2 Comments »
Posted on July 13, 2015 by Paul Blank
The majority of single-dealer platforms (SDPs) – especially those of regional banks, provide mainly principal (rather than agency) based pricing to clients. That’s where the bank takes the other side of the trade (even if the bank covers the trades by back-to-back hedging with their liquidity providers), making their money on the spread, rather than helping the client achieve the best execution for the transaction, and charging a commission for the service.
Whilst corporate and non-financial clients will happily use SDPs, we are seeing Continue reading
Filed under: FX, MDP, Paul Blank, Single-Dealer Platforms, TCA, Web trading technology | Leave a comment »
Posted on July 12, 2015 by Paul Blank
The major OTC FX platforms have now reported their Jun 15 volumes.
In terms of spot FX, EBS and FastMatch show decent 5%+ gains, whilst Reuters spot volumes fall 1.8% to their lowest levels of 2015. The Reuters-EBS gap continues to narrow (smallest gap of 2015), showing spot flows continuing to move from Reuters to EBS. And I would suspect the gains show continued attraction of EBSDirect, providing banks with tailored disclosed liquidity aggregation feeds for their pricing engines.
Notably, EBSDirect has just added two new regional bank liquidity contributors, (Standard Bank and Metallinvestbank), broadening the appeal of the EBSDirect feed outside of G10 to include EM currencies.
Commenting on the contributions from the respective banks Continue reading
Filed under: FX, Paul Blank, Web trading technology | 1 Comment »
Posted on July 2, 2015 by Paul Blank
Last month’s publication by The Fair and Effective Markets Review FEMR, set out 21 recommendations to help restore trust in the wholesale Fixed Income, Currency and Commodity (FICC) markets.
Recommendation 4b stated:
….”As part of that work, improve the controls and transparency around FX market practices, including ‘last look’, ‘time stamping’ and ‘internalisation’
the report suggested that the Bank of International Settlements (BIS), and national central banks including the Bank of England lead that effort, fully covered in section 4.3.3 of the report.
I thought it would be worth briefly looking at these three practices and then gathering some very unscientific feedback from readers in the form of quick poll, and so below I have set up a poll, asking the same question to both buyside and sellside readers, with probably too simplistic a question, which is: “Which of the following practices are most open to abuse, resulting in sub-optimal client execution?”. Continue reading
Filed under: FX, Internalisation, Paul Blank, Web trading technology | Leave a comment »
Posted on June 18, 2015 by Paul Blank
I seem to have missed this last month, but interesting nonetheless to see that MTS has relaunched and re-branded the Bonds.com platform they acquired for $15m last year as MTSBondsPro and have now launched a HTML5 version of the platform.
Here are a couple of comments from an interview with MTS Markets CEO, Mark Monahan in Waters Technology that bring a smile: Continue reading
Filed under: HTML5, Paul Blank, Web trading technology | Leave a comment »
Posted on June 8, 2015 by Paul Blank
The WSJ ran a story last week that privately held FX multi-dealer platform 360T which provides FX trading services to over 1,700 institutional clients, and which back in 2012 sold a stake to private equity firm Summit Partners, could be in the process of being sold, with a suggested price tag of around €600m ($750m). Reuters carries a story saying that Jefferies have been hired to handle the sale, which is expected to complete before the summer.
Update on 16 June: Reuters news wires talking about Deutsche Boerse being the possible buyer for 360T.
Unlike the other major platforms, 360T does not publish average daily volumes (ADV), so it’s a little difficult to compare them.
However, back in 2103, Carlo Kolzer, CEO of 360T was quoted in FX Week saying that Continue reading
Filed under: FX, Paul Blank, Web trading technology | Leave a comment »