China acts to slow yuan gains by scrapping FX forward hedge cost – FX Markets Skip to main content End of drawer navigation content PBoC to remove 20% reserve ratio as it aims for ‘reasonable and balanced’ renminbi The People’s Bank of China is to scrap its reserve ratio for foreign exchange forwards sales in […]
CME outage sparks FX soul search – FX Markets Skip to main content End of drawer navigation content How November’s halt exposed fragile wiring of new futures-led market structure Foreign exchange futures account for roughly 2% of total spot and outright forwards volume. Yet when CME Group’s futures exchange and the EBS spot venue went
FX options API trading takes off at quant hedge funds – FX Markets Skip to main content End of drawer navigation content Systematic players behind surge in direct execution, say dealers In the fast-paced world of spot foreign exchange trading, dealers send a constant stream of prices to some of the most active market participants
For banks seeking to retain and grow their FX business, a superior client experience is critical. With unprecedented access to real-time pricing data and a queue of liquidity providers, clients now demand speed, transparency and responsiveness from their sales coverage. Yet many banks still rely on fragmented systems, manual workflows and spreadsheets that quietly erode
LatAm FX carry trade shrugs off geopolitical fears – FX Markets Skip to main content End of drawer navigation content Clients in regional carry positions remain undeterred by US interventions, say dealers Increased geopolitical instability in Latin America in recent weeks has failed to dissuade investors from putting on foreign exchange carry trades linked to
Nomura has hired Mark McMillan as its global head of electronic foreign exchange, based in London. In the newly created role, McMillan will oversee the bank’s electronic FX business, encompassing trading, sales, quant and strats, according to an internal memo seen by FX Markets. Chris Torrington, global head of eFX trading and Ben Robson, global
Hedge funds are being given new ways to act as indirect liquidity providers in FX markets by placing passive resting orders against banks’ internal liquidity pools. How dealers should then make use of such orders, though, presents a complicated question. In a December paper, quants at HSBC and Imperial College London give an answer. The group worked out
CME futures outage caused FX spot pricing problems – FX Markets Skip to main content End of drawer navigation content At least one non-bank was forced to pull prices, and NDFs also affected The absence of pricing information from CME’s futures contracts during the outage on November 28 caused major problems for some foreign exchange
I’ve just achieved – or endured? – the milestone of 10 years on an institutional FX trading desk. Either way, it feels like the right moment for a little reflection. Let’s start with an assumption: this morning I tapped in with my contactless card for the Elizabeth line, sipped canned matcha, scrolled TikTok and started
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
The increasing shift of foreign exchange spot market volumes into liquidity providers’ internalisation engines has made real-time visibility into the true magnitude of volumes traded in the market more and more difficult. During intense periods of high volatility, such as April’s tariff turmoil, liquidity providers noted that the flows they internally match within their client franchises
Nomura eyes FRTB models expansion for FX desks – FX Markets Skip to main content End of drawer navigation content With rates desks all now on FRTB internal models, markets head says FX is next Nomura is looking to gain approval to use internal models to calculate its foreign exchange desks’ capital requirements under new
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
When Citi’s global head of foreign exchange, Flavio Figueiredo, took on the top role in Citi’s global FX unit in the summer of 2023, priority number one was a strategic reset for the business. An internal review had identified gaps with peers in FX options and electronic trading, as well as with specific client segments
ANZ Bank HQ in Melbourne, Australia ANZ’s Group of 10 foreign exchange forwards activity skyrocketed with Pimco in the second quarter this year, with the Australian bank executing several chunky trades that ultimately made it the asset manager’s largest counterparty. Throughout 2024, the bank averaged $1.9 billion of G10 forwards trades with Pimco. But in
Hedge funds switch yen bets after Japan election shock – FX Markets Skip to main content End of drawer navigation content Takaichi victory forces unwinds and a move to topside trades, while barriers give dealers a headache The surprise outcome of the Japanese election has led to a U-turn among many macro hedge funds that
Hedge funds are continuing to run Hong Kong dollar carry trades despite a rise in local interest rates, albeit on a much-reduced scale compared with earlier in the year. Dealers, however, expect a big resurgence in these positions should spot once again hit the bottom of the currency’s trading band, which would force authorities to
