Conflicting interpretations of European digital assets legislation are hindering the development of euro-denominated stablecoins, according to Don Wilson, chief executive of DRW Holdings. As a result, Wilson said European capital will continue flowing into US dollar stablecoins, which typically invest in US Treasuries, and away from European government bonds. “European [regulators] have expressed some concerns about […]
Emir rule delay leaves Simm paperwork gathering dust – FX Markets End of drawer navigation content Skip to main content Mid-year refresh triggers Emir 3.0 authorisation process despite unfinished regulatory standards The first mid-year recalibration of the standard initial margin model under a new semi-annual regime will trigger a requirement for European firms to submit
Standard Chartered has hired John Newman as global head of rates and foreign exchange trading. Newman joined the UK bank last month and is based in London, according to his LinkedIn profile. A spokesperson for Standard Chartered confirmed the appointment. Newman joins after 24 years at UBS, where he held several global trading roles. Most
European asset managers and pension funds are adding more currency hedges to their US equity portfolios following a breakdown of the so-called ‘dollar smile’. The greenback typically appreciates when US stocks are booming or under extreme stress. For foreign investors, the phenomenon – known as the dollar smile – offers a natural hedge against sharp
European financial institutions are concerned that any renewed escalation of trade tensions with the US could spill over into actions that would limit their ability to source dollar funding. A chief risk officer (CRO) at a European wealth manager says this scenario remains “extreme”, but not impossible. “One of the scenarios I have been starting
US president Donald Trump’s whipsawing tariff policies created a perfect storm for foreign exchange options dealers, as hedge funds rushed to short US dollar positions while systematic volatility sellers and large macro funds sat on the sidelines. The ensuing volatility left traders wondering if they had slipped into the wrong desks, or even another dimension.
The sharp fall in the US dollar following President Donald Trump’s “liberation day” tariffs announcement saw intense activity on foreign exchange options desks, leaving dealers rushing to buy volatility to re-hedge EUR/USD books as spot surged. “It was manic… it almost made the Turkish lira [moves] irrelevant,” says one head of FX derivatives at a
In the US, March Madness is synonymous with the annual knockout college basketball tournament, known for its unpredictable results and stunning turnarounds. But the country has seemingly exported this concept to its foreign policy in the past month, with shifting tariff threats, territorial disputes and abortive peace talks with Russia putting foreign exchange on the
New CME venue aims to provide easier access to FX futures liquidity, but some worry about its stability in choppy markets Source link
A growing number of market-makers and traders say price discovery for several key G10 currencies has already shifted to CME’s foreign exchange futures markets and away from primary venues for certain pairs. In particular, some senior figures say futures contracts have become the primary pricing reference point for the Commonwealth currencies – Australian dollar, Canadian
TD Securities and Goldman Sachs made the largest ranking moves among dealers serving the FX forwards market for European retail funds during the first half of last year. The Canadian bank gained $14.4 billion in notional from trades with Ucits funds, increasing its market share to 9.5% from 7% and becoming the second-largest dealer in
Corporates turn to structured notes to juice cash returns – FX Markets End of drawer navigation content Skip to main content Dual currency notes find favour with treasurers under pressure to boost yields amid higher rates Some corporate treasurers are taking advantage of more volatile foreign exchange and interest rate markets to invest their foreign
Non-bank market-maker XTX Markets has hired Sam Brook for its European foreign exchange and equities trading team. Brook joins from NatWest Markets, where he spent nine years in the UK bank’s electronic FX trading unit, primarily working on the buildout of its e-FX market-making desk. As part of the Europe, Middle East and Africa distribution
Foreign exchange losses have begun to mount for some of the largest global corporates, with the likes of Amazon, Apple and Nike reporting revenues negatively affected by continued US dollar strength in the fourth quarter. Since September, the dollar has risen by as much as 7% against many G10 and emerging market currencies, reducing the
Corporates eye complex FX hedges as carry costs mount – FX Markets End of drawer navigation content Skip to main content Leveraged forwards and options-based structures entice treasurers facing rates uncertainty and FX volatility The shake-em-up economic policies trailed by new US president and so-called “disruptor-in-chief” Donald Trump have left corporate treasurers on both sides
Consultation papers are like tea leaves or runes: observers study them for clues to future actions or events. Such is the case with Iosco’s latest consultation paper on the controversial practice of pre-hedging. The document, released last November, has raised niggling concerns among market participants that the global standard-setter may be weighing tighter rules on
Draft recommendations proposed by international regulators to address controversy over the practice of dealers pre-hedging client orders have largely copied guidance already set out in industry codes. That’s good news for advocates of pre-hedging who may have feared stricter guidance, but has left its critics wanting more. “When it comes to the competitive request-for-quote scenario,
