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Nasdaq prepares to launch own FX platform

Posted on August 26, 2015 by Paul Blank

Exchanges can’t seem to get enough of FX!

Following the recent spate of exchanges buying FX platforms (Deutsche Boerse buying 360T, BATS Global Trading buying Hotspot, and talk of ICE buying FastMatch), we now hear Nasdaq is readying the launch of their new FX platform.

So, what’s the attraction?

Well, for one thing size, at $5.3tn/day, it’s by far the largest globally traded market. It’s predominantly a bilaterally traded OTC market, highly liquid and although decentralized and fragmented into multiple liquidity pools, is nonetheless very efficient and increasingly electronically executed.

The size and liquid nature of the market play to the scale and efficiency of exchange infrastructure.

But, this is about more than size. Continue reading →

Filed under: FX, Paul Blank, Regulation, Single-Dealer Platforms, Web trading technology | Leave a 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 »

Regional banks upping their game, as Standard Bank rolls out an award winning SDP

Posted on May 1, 2015 by Paul Blank

We often comment on how regional banks are upping their game, and investing in new single-dealer platforms (SDPs) to enable them to better serve, protect and grow their client franchise.

With that in mind, it was great to see that Standard Bank’s newly upgraded SDP eMarketTrader has just been voted ‘Best Super Regional Bank SDP’ in the Profit & Loss 2015 Digital FX Awards.

According to Profit & Loss editor Colin Lambert:

For the first time in three years a new entrant joined the winners’ circle: Standard Bank.

Banks continued to invest in what remains their number one channel for connecting with clients.

It is heartening to see so many banks outside the top 10 investing in their technology also – a single dealer platform will be vitally important for these institutions if they are to service their core client base going forward.”

This is a big achievement for Standard Bank, as the ‘winners circle’ is made up of Continue reading →

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

Regional banks looking at Fixed Income SDPs

Posted on October 28, 2014 by Paul Blank

The evolving regulatory regimes and mandates of Dodd-Frank, Volcker Rule, EMIR, MiFid II and Basel capital reforms are designed to increase transparency, reduce risk and drive OTC derivatives markets onto transparent and regulated markets and platforms.

As a result banks are radically changing, (and indeed cannibalizing) business models within the fixed income (FICC) businesses, pulling back or even withdrawing from more capital-intensive inventory based market-making activities in products such as credits as they move towards what is called a ‘capital light operating model’.

Banks are now specialising around core skills, value propositions and client franchise, with a reduction in those willing to be flow banks, whilst others specialise in execution capabilities around an agency model. As a result, clients will be offered execution services from banks that will be a blend of principal/agency, bilateral/cleared, all of which requiring investment by dealers in new technology and connectivity pipes to execution venues such as SEFs, post-trade reporting (TR) repositories, central clearing houses (CCPs) and more.

So, what’s happening in Europe in terms of fixed income e-trading, and in particular what’s the future for single-dealer platforms in fixed income? Continue reading →

Filed under: Paul Blank, SEF, Single-Dealer Platforms, SWAPS | Leave a comment »

New Caplin white paper ‘Trading On The Move’

Posted on October 12, 2014 by Paul Blank

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 →

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

Regional banks upgrading single-dealer platforms to protect and grow market share (according to new research from Celent)

Posted on October 7, 2014 by Paul Blank

Interesting new research paper from Celent; FX Trading Platforms: Models Converge, and Competition Heats Up, examines trends in the FX markets, the blurring of traditional market structure boundaries, the evolution of Single-Dealer Platforms, and looks at the growing competition between platforms.

Some of the themes the paper are: Continue reading →

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

Are regional banks ready to offer mobile trading?

Posted on August 18, 2014 by Paul Blank

Top tier banks have been offering mobile solutions to their institutional clients for a while now, ranging from research and indicative pricing, through to enabling clients to manage existing and in some cases placing new orders. With early compliance and security concerns having been addressed, banks such as Citi and JP Morgan are providing full mobile click and trade functionality.

But what about regional banks, what is their attitude towards mobile trading for corporate customers?

Here at Caplin, we are certainly seeing interest from a number of Continue reading →

Filed under: FX, Mobile, Paul Blank, Single-Dealer Platforms | 1 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 »

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