Tag: Foreign exchange

  • Positive M&A outlook could boost deal contingent hedges

    Positive M&A outlook could boost deal contingent hedges


    Dealers expect an increase in deal contingent foreign exchange hedging activity in 2025, in conjunction with heightened takeover deals from corporates and private equity firms in the latter part of the year.

    “We’ve certainly seen an uptick in deal contingent hedging,” says Edmund Carroll, head of FX, rates and commodities corporate client solutions at UBS. “Compared to 2022 the number of DC trades is magnitudes higher now, simply because of the far higher deal flow.”

    As of March 4, the total year

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  • HSBC appoints Benihasim as global FX head

    HSBC appoints Benihasim as global FX head


    Volkan Benihasim has been named global head of foreign exchange, emerging markets rates and commodities at HSBC.

    Benihasim takes over from Richard Bibbey, who has relocated from Hong Kong to London to become global head of institution sales in the markets and securities services division. Benihasim was previously global head of FX cash and emerging markets rates in Hong Kong, and will remain in the city-state in his new role.

    According to an internal HSBC memo seen by FX Markets, he will look to

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  • FX defs look to calculation agents for close-out rates

    FX defs look to calculation agents for close-out rates


    Calculation agents will play a bigger role under the International Swaps and Derivatives Association’s new foreign exchange definitions, while the definition of “impossibility” in disruption events will also be updated.

    Isda is updating its rule book for trading FX derivatives, after the Russian invasion of Ukraine in 2022 exposed flaws around the management of disruption events and disrupted price sources.

    Deepak Sitlani, a partner in the derivatives and structured products group at law firm

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  • Funds tap options on FX vol amid tariff disruptions

    Funds tap options on FX vol amid tariff disruptions















































    Funds tap options on FX vol amid tariff disruptions – FX Markets






    Dealers say vanillas, digitals and knockouts on realised vol increasingly used to navigate Trump news flow


    FX-volatility-Getty-1484494449

    Hedge funds are increasingly taking out complex options structures that speculate on pricing of foreign exchange volatility levels across several currencies linked to US president Donald Trump’s tariffs.

    Investors have increasingly looked to incorporate vol-linked knockouts in vanilla FX options to cheapen them up and avoid crowded barrier zones. Others have looked at options directly on realised volatility, including spread trades across multiple currencies.

    “We continue to see a very inverted

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  • Corporates eye complex FX hedges as carry costs mount

    Corporates eye complex FX hedges as carry costs mount


















































    Corporates eye complex FX hedges as carry costs mount – FX Markets



    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 of the Atlantic nervously eyeing their cost of foreign exchange hedging.

    FX volatility has spiked amid continued threats by Trump of tough tariffs on Canada, Mexico, China and the European Union. Meanwhile, interest rate differentials between the US and Europe are expected to widen as analysts forecast higher-for-longer rates from the Federal

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  • LCH expects to boost deliverable FX clearing with new adds

    LCH expects to boost deliverable FX clearing with new adds

















































    LCH expects to boost deliverable FX clearing with new adds – FX Markets






    Onboarding of dealers and link-up with CLS could swell interbank deliverable FX clearing volumes


    LSEG-HQ-AlamyD6JDTK

    LCH ForexClear is entering the next phase of its deliverable interbank foreign exchange forwards clearing service. As some of the largest dealers prepare to join, their business could combine with an initiative to join the CLS main settlement session to significantly boost FX clearing volumes.

    Dubbed ‘FX smart clearing’ and launched in partnership with Quantile – a fellow post-trade business within the London Stock Exchange Group – the service combines compressions, overlay trades and selective

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  • Isda to finalise drafting updated FX definitions this year

    Isda to finalise drafting updated FX definitions this year


    A new framework for handling disruption events is at the core of work being carried out by the International Swaps and Derivatives Association to update its foreign exchange and currency option definitions, which is expected to be finalised this year.

    Much of the focus on drafting the new definitions, which have not been updated since their inception in 1998, concerns updating the classification of disruption events and fallbacks for deliverable FX transactions, such as spot, FX forwards and

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