Is FX heading for Equity style ‘All-2-All’ market?


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: Continue reading

Fixed Income trading in Asia on Single Dealer Platforms on the rise


Asian Investor has an interesting article regarding the rise of fixed income trading on SDPs.

Although Bloomberg is still the dominant FI platform in the region (trading up to 70% of volumes), Asian Investors are starting to migrate flows to Single-Dealer Platforms for US Treasuries and Sovereign bonds.

According to Gavin Ottery, head of fixed income e-commerce sales at UBS in Hong Kong.

Hundreds of clients in Asia-Pacific have migrated from voice to electronic for both regional and global cash products, and electronic fixed income trading volumes in the region continue to increase year-on-year, with 2012 being a record year. Continue reading

FX multibank platforms mixed Feb volumes figures


Three of the main multi-bank FX platforms have now reported their Feb volumes.

Reuters and EBS showed continued strength, whilst FXall (also owned by Reuters) recorded a new monthly record.

Continue reading

Leading FX platforms report strong increases in volumes


Reuters, FXall and EBS have now all released their FX vols for Jan 2013, with a strong bounce in volumes.

The largest increase coming from Continue reading

FX Options Platforms


FX week has a story here about Multi bank FX Options platform SurfaceExchange in acquisition talks with potential suitors.

FX options, fall under the Dodd Frank SEF mandate, and Continue reading

Latest BofE FX survey data: FX vols down 6%, SDPs continue to outperform MDPs


The Bank of England today released their latest semi-annual FX turnover survey results for October 2012.

Highlights

  • Daily FX vol $1,919bln, down 6%  on April 2012, (7% down YoY)
  • Spot vols down 6% to $678bln/day

Execution via Single Dealer Platforms (SDPs) continues to outperform Multi Dealer Platforms (MDPs).

Continue reading

Whilst SDPs thrive, Bloomberg’s FXGO is MDP to watch


Bloomberg’s multi dealer platform FXGO is seeing surge in FX volumes (up 79% YTD, and 65% YoY) according to Tod Van Dam, Bloomberg’s Global Head of FX.

Such performance comes against a backdrop of research from the likes of Celent that Single Dealer Platforms best positioned to dominate FX market,  and Continue reading

Single Dealer Platforms best positioned to dominate FX market (Celent Research)


New research from Celent confirms Caplin’s long-held view that Single Dealer Platforms (SDPs) will dominate the FX markets.

Contrary to those predicting that Dodd Frank and Mifid II would signal the death of SDPs, Caplin’s position as outlined in our recent white paper, SDPs in a cleared world is that SDPs will remain the dominant ‘relationship channel of choice’  for clients. Continue reading

FXSpotStream- now live


FXSpotStream, the multibank FX aggregation Consortium ‘Utility’ we first covered back in May, today announced that they are now live for client trading.

The service was built using SmartTrade’s technology platform.

Press release is here

Thomson Reuters to buy FXall for $625mln cash


Under the definitive agreement, slated to close in the third quarter, Thomson Reuters will pay $22 per share for Nyse-listed FXall, which closed at $15.70 a share on Friday. Continue reading