FXall Q3 results out, and covered here by LeapRate, including an updated IPO registration. LeapRate highlight the continuing decline in margins, as shown here.
FXall Operating Margins – under pressure (charts from LeapRate)
FXall SEF: Separately, the NFA will provide regulatory services for FXall’s SEF offering, in preparation for when rules have been formally completed.
My view: Although, as previously mentioned, we see single dealer platforms continuing as preferred channel through which buy-side firms access liquidity, whether provided by banks directly, or routed to SEFs where mandated. To date, 99% of FXall volume consists FX spot, fwds and swaps, all of which are exempt from SEF mandates.
Bank ownership: Under SEF rules, bank ownership is limited to under 25%, so will be interesting to see whether the current FXall bank shareholders each of which hold 5.1% (BNP, Citi, Credit Agricole, CS, Goldman, HSBC, MS, RBS – although the top three FX banks, Deutsche, UBS and BarCap are not shareholders in FXall) will cash in, or stay onboard to have a stronger influence on possible intermediation of their bank-client relationships, as mentioned here in could FXall become too big.
Filed under: Dodd Frank, FX, MDP, Regulation, SEF, Single-Dealer Platforms |
SingleDealerPlatforms.Org 
[…] interestingly, I asked just that question on 5th December following the release of FXall Q3 figures here, where I […]
[…] have background on items on the FXall IPO here, here and here Share this:EmailDiggStumbleUponTwitterFacebookPrintLinkedInLike this:LikeBe the first to like this […]