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
The overturning of Mark Johnson’s fraud conviction in July could indicate that dealers do not owe fiduciary duties to their counterparties when pre-hedging large transactions, according to lawyers. Johnson, former head of foreign exchange cash trading at HSBC, was accused of wire fraud involving Scottish energy company Cairn over a $3.5 billion dollar/sterling transaction. In
The investors who aren’t fretting over Trump’s stat sulk – FX Markets Skip to main content End of drawer navigation content Some see dismissal of statistics agency chief as an assault on US institutional integrity; for others it offers a chance to throw off outdated methods When the US Bureau of Labor Statistics revised down
As developed countries continue to rack up deficits, the big question looming over markets is, who will buy the growing pile of sovereign debt? Hossein Zaimi, global head of macro at Barclays, doesn’t have the answer, but he is pretty sure the prevailing view in financial and government circles is wrong. “The sustainability of the
One question we’ve been discussing on the reporting desk lately is the difference between US president Donald Trump’s impact on the foreign exchange markets in his current term compared with his first. Take yourself back eight years and there are some parallels. For example, Trump’s frequent, unpredictable tweets about US trade policy with China in
It’s a known but unproven assumption that predatory trading during the 4pm London time fixing window for benchmark currency rates – mostly from high-speed hedge funds and prop desks – can lead to worse prices for clients. What’s less clear is what to do about it. A new paper, jointly authored by Deutsche Bank’s Roel Oomen
CME boosts FX access via new vendor partnerships – FX Markets Skip to main content End of drawer navigation content Tie-ups with Trading Technologies and Integral to bring new liquidity into EBS and Spot+ venues CME Group is establishing ties with key vendors to expand the distribution of primary market foreign exchange liquidity from EBS
Standard Chartered launches spot crypto market-making – FX Markets Skip to main content End of drawer navigation content Bitcoin and ethereum to trade off the bank’s FX desk, but questions remain on capital treatment Standard Chartered has launched a spot crypto trading business, making it the first bank to go live with a spot crypto
