LCH’s ForexClear reported its highest stress losses since 2019 in the final quarter of 2025, while the share of initial margin posted by its five largest clearing members rose by 9 percentage points. The UK-based central counterparty (CCP) disclosed a peak stress loss of $1.1 billion under a single-member default scenario, up 42.8% from the […]
Morgan Stanley has cut four London-based foreign exchange salespeople and traders, who were covering real money clients, according to two sources with knowledge of the departures. The Wall Street Journal reported last week that the bank has cut 2,500 jobs in total – around 3% of the workforce – shortly after reporting record profits of
Three characters are causing a crisis of confidence among back-office staff at UK and European banks, brokers and investment firms: T+1. After laying out a roadmap for next year’s switch to one-working-day trade settlement, regulators and industry execs are haggling over the finer details, and companies are under notice to put their plans in place.
LSEG adds market risk optimisation for FX options – FX Markets Skip to main content End of drawer navigation content Tool attracts eight dealers and could be expanded to rates and equity options London Stock Exchange Group’s (LSEG) post-trade division has launched its first market risk optimisation tool, initially aimed at helping foreign exchange options
Dealers might be nearing their capacity for Turkish lira options-based carry trades, as liquidity pressures, market risk and unwind concerns begin to constrain the amount of new trading they can support. The lira carry trade has been a favoured strategy among hedge funds and institutional investors this year, owing to the whopping 40% carry on
e-FX awards 2025 – the winners – FX Markets Skip to main content End of drawer navigation content Barclays, DB and State Street take two wins each, while Citadel, Citi, JPM and BNP also take top slots FX Markets is proud to announce the winners of the e-FX Awards for 2025. The roll of honour
European corporates have been shortening the tenor of their foreign exchange forwards hedges so they can react more quickly to market conditions should spot and hedging costs improve, according to dealers. Banks say corporates that typically might have hedged at the five-year tenor are now looking at monthly rolling strategies, for example. “Our volumes pick
Row breaks out over cause of FX settlement fails – FX Markets Skip to main content End of drawer navigation content One European bank blames T+1 for a 50% jump in FX fails, but industry groups dispute the claims A surprising disagreement has broken out between a large European bank and industry groups tasked with
The popularity of hybrid options is expanding beyond hedge funds, with a growing number of asset managers, pension funds and insurers taking advantage of dislocated correlations between asset classes for yield enhancement and cheap long-term hedging. “The biggest chunk has been with hedge funds, but some of the largest trades have been done with asset
Hugh Stevens has joined Wells Fargo as head of electronic foreign exchange trading for Europe, the Middle East and Africa (Emea). Stevens previously spent over seven years at Standard Chartered in London and New York, most recently as head of e-FX trading for the Americas. He reports to Chad Berner, head of electronic and G1O
Confidence in a continued gold price rally has enticed hedge funds back into hybrid options trades, after erroneous bets on US equities led to a pause in activity. Hybrid options, which use correlation between two or more assets to cheapen the cost of convex bets, have become a hedge fund staple for trading macro events.
Entering 2025, the prevailing macro theme throughout the investment community was that the US dollar would continue its dominant path. Years of US exceptionalism – driven by a booming equity market and a resilient labour market – had cemented the dollar as a must-have hedging tool in most portfolios. For example, if there was a
Former ECB Supervisory Board member speaks about Covid-19 and Credit Suisse shocks, regulation debates, the rise of non-banks and what makes tech projects succeed Source link
Fool me once, shame on you. Fool me twice, shame on me. It’s a maxim on many traders’ minds as they try to gauge the authenticity – or otherwise – of US president Donald Trump’s pronouncements. When news broke on July 16 that Trump had drafted a letter to remove Federal Reserve chair Jerome Powell, the
Crackdown on FX vendors could raise costs for dealers – FX Markets Skip to main content End of drawer navigation content MTF designation could cost aggregators and EMSs $3m to set up and $1m in annual maintenance Vendors that must register as multilateral trading facilities (MTFs) may end up passing increased regulatory costs on to
Investors hope US rate cuts will lower FX hedging costs – FX Markets Skip to main content End of drawer navigation content European investors in US assets set to boost hedge ratios as implied yields rise As the US dollar has continued its fall after April’s tariff turmoil, foreign investors in US assets have had
One of the last bastions of cash-only payments in the financial markets is showing signs of wavering. Global banks accepted $325 billion of non-cash variation margin (VM) at the end of 2024, according to the International Swaps and Derivatives Association’s latest margin survey – accounting for a record 31.6% of the roughly $1 trillion in total
