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Interesting Celent report on future of Spot FX trading technology & platforms

Posted on January 2, 2016 by Paul Blank

Just finished reviewing an interesting Celent report by Brad Bailey, on evolving spot FX market structure and technology trends in light of changes in global regulation, a blurring of traditional liquidity pools and the ongoing competitive landscape.

Brad touches on a number of the themes we have covered here over the year, but it’s always good to have someone else’s perspective on them.

The themes covered being: Continue reading →

Filed under: FX, MDP, OTC, Paul Blank, Regulation, Single-Dealer Platforms, Survey Results, Technology Trends | 1 Comment »

EBS and FXall looking to service Corporate Treasurers – so where does that leave bank SDPs?

Posted on August 3, 2015 by Paul Blank

The two main FX platform providers, ICAP’s EBS BrokerTec and ThomsonReuters have both announced new multi-dealer offerings to better service corporate treasurers.

EBS BrokerTec has announced they are integrating ICAP’s My Treasury, their fully disclosed relationship based multi-product, multi-bank, multi-fund, multi-currency solution for corporate treasurers into the EBS platform. The new offering will be called EBS Treasury, and will be available later this year.

EBS Treasury will offer: FX spot, FWD, Swaps, with FX pricing from EBS Direct. Trading will be provided by Streamed RFQ (request for stream), which is a new addition to EBS Direct’s execution functionality. The streamed RFQ will allow banks to stream tailored prices to corporates. EBS Treasury will improve efficiency for corporates that currently source FX liquidity and money market products from multiple providers. EBS Treasury will be designed to integrate seamlessly into existing treasury management systems.

Justin Meadows, CEO of MyTreasury, said: Continue reading →

Filed under: FX, MDP, Paul Blank, Single-Dealer Platforms | Leave a comment »

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

Posted on July 28, 2015 by Paul Blank

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 →

Filed under: FX, MDP, Paul Blank, Single-Dealer Platforms, Survey Results | Leave a comment »

Why SDPs should provide TCA tools for buy-side clients

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 »

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

Posted on July 29, 2014 by Paul Blank

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 →

Filed under: FX, MDP, Paul Blank, Single-Dealer Platforms, Survey Results | 1 Comment »

EBS, Reuters/FXall and CLS Mar14 FX vols (FXall record high)

Posted on April 9, 2014 by Paul Blank

The three main OTC FX platforms have now reported their Mar 2014 volumes.

Whilst Reuters matching saw a small drop in volumes and EBS a small rise, FXall saw strong growth. Hitting a new all time high, driven by record volumes in Chinese CNH on the back of recent intervention by the Chinese authorities to halt the one way bet on a continually rising Yuan.

FXall: $132bln/day, up 8.2% on the $122bln/day in Feb 2014, and some 20% up compared to Mar 2013 level of $110bln/day.

Reuters Matching: $110bln/day, down 2.7% on the $113bln/day in Feb 2014, and still some 16% down compared to Mar 2013 level of $131bln/day.

EBS: $88.4bln/day, up 5.9% on the $83.4bln/day in Feb 2014, but still a 26.6% down compared to Mar 2013 level of $120.4bln/day.

Hotspot: to be added once released.

FX volumes for Reuters, FXall and EBS- March 2014
(Chart indexed based at Jan 2011)

CLS value of trades submitted: $2,675bln/day, up 3.9% on the $2,575bln/day in Feb 2014, and 3.68% up compared to Mar 2013 level of $2,580bln/day.

CLS number of instructions submitted: 1,155,507, up 0.4% on the 1,150,663 in Feb 2014, and -5.12% down compared to Mar 2013 level of 1,217,817.

Filed under: FX, MDP, Paul Blank, Web trading technology | 1 Comment »

Value vs cost of FX liquidity provision

Posted on February 28, 2014 by Paul Blank

Interesting article in FX Week, about banks pulling their liquidity provision back from a number of multi-bank platforms due to the high cost fee structures on those platforms.

According to Kurt Vom Scheidt, COO of Markets in Saxo Bank, speaking on a conference panel at FX Invest Europe in Frankfurt…

“With banks struggling to make adequate returns across the board, connections to expensive trading platforms are on the chopping board”

He further commented that…. Continue reading →

Filed under: FX, MDP, Paul Blank, Single-Dealer Platforms | 3 Comments »

BofE FX Survey data: $2,234bln/day (12% down from Apr, but 11% up YonY) – worth reading

Posted on January 28, 2014 by Paul Blank

The Bank of England today released their latest semi-annual FX turnover survey results for October 2013.

Highlights on overall London FX volumes

Total FX vols down 12% since Apr at $2,234bln/day (up 11% YoY)
FX Swaps account for 50% of total FX vols (up from 42% in Apr), highest share since Apr 09
FX Spot account for 34% of total FX vols (down from 39% in Apr), lowest share since Apr 09
Spot FX vol down 24% from Apr at 767bln/day (5% higher YoY)
Spot USD/JPY vols 48% lower than Apr at $119bln/day (still 2nd most traded curr pair)

Execution via Multi-Dealer Platforms (MDP) and Single-Dealer Platforms (SDPs) both down approx 9% since Apr

SDP vols – 9% (still up 21% YoY), driven by +31% increase in use by Reporting Dealers and +14% by other banks
MDP vols -10% (up 53% YoY), driven by +77% rise in Non-Bank Financial Institutions

Detailed analysis and charts on the figures follows below. Continue reading →

Filed under: FX, MDP, Paul Blank, Single-Dealer Platforms, Survey Results | 2 Comments »

EBS and Reuters/FXall Oct13 FX vols released

Posted on November 7, 2013 by Paul Blank

The three main OTC FX platforms have now reported their Oct 13 volumes.

All three platforms saw decline in daily volumes in October, with Reuters and EBS both recording multi year (record low) trading volumes.

Reuters matching and conversational dealing platforms showing the largest fall, down $13bln/day (-11.8%) at $97bln/day from $110bln/day in September, and also showing the largest YoY drop of -19.2%.

EBS which as we reported earlier this week, also hit new all time lows in daily volumes which were down $4bln/day ( -5.2%) at a new low of $77bln/day, a drop of -16.8% YOY.

Whilst FXAll volumes were $5bln/day (-4.5%) lower at $106bln/day down from $111bln/day in September, although still up some 12.8% YOY.

Filed under: FX, MDP, Paul Blank | 2 Comments »

BofE FX Survey Data shows record $2,547bln/day (very interesting read)

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.

Highlights

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

Continue reading →

Filed under: FX, MDP, Paul Blank, Single-Dealer Platforms, Survey Results | 2 Comments »

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