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of statistics agency chief as an assault on US institutional integrity; for others it offers a chance to throw off outdated methods When the US Bureau of Labor Statistics revised down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
Jive Investments quicksteps towards hedged returns – FX Markets Skip to main content End of drawer navigation content Brazilian fund manager uses combo of options and forwards to push down hedging costs compared with plain NDF strategy The currency volatility that followed the Covid-19 pandemic in 2020 led to some tricky conversations for Brazilian private
CEO David Mercer on what the Genius Act means for markets, and where the venue’s FX business goes next Source link
The turmoil from US president Donald Trump’s ‘liberation day’ tariff announcements rattled global foreign exchange, interest rate and equities markets, where it triggered significant volatility and negatively impacted liquidity conditions. Understanding how execution strategies behave under such conditions is critical for market participants to navigate future turbulent periods. In BestX’s latest study, “Empirical statistics of
Taiwanese life insurers are expected to increase foreign exchange hedging after recent tariff-driven market volatility led to losses on their US dollar-denominated assets. Despite fears that the Taiwan dollar’s recent rally might be more than a short-term fluctuation, high hedging costs have so far delayed action – even as a lack of domestic investment alternatives means
Macro investors are struggling to find good trades ahead of the July 9 deadline for the Trump administration’s 90-day tariff pause, choosing instead to focus on the ‘day-to-day’. Traders are having to navigate multiple discrete risk events, such as central bank, G7 and Nato meetings, before the tariff pause ends, and are unsure whether the
Bank FX market-makers ramp up AI usage – FX Markets End of drawer navigation content Skip to main content Barclays applies tech to predictions, while HSBC and ING look at pricing accuracy Bank foreign exchange market-makers are increasingly using machine learning and artificial intelligence technology to improve their pricing predictions and sharpen levels shown to
In April, after the markets chaos that followed ‘Liberation Day’, Mads Gosvig, who heads asset allocation at the UK’s Railpen pension fund, asked his team to assess the case for an emerging markets premium on US assets. Gosvig’s intention was to provoke discussion, he says. But the task reflected a genuine disquiet, matched at other
Deutsche Bank is shifting gears on its proprietary foreign exchange trading platform, offering access to certain workflow elements via third-party platforms – as clients continue to migrate towards these venues. For years, banks have tried to divert FX traffic from the multi-dealer platforms by offering value-added services. But their efforts have not slowed down the
The deal contingent (DC) hedge market has been making a comeback, after President Trump’s chaotic tariff policies in April led to a sharp dropoff in public merger deal activity amid the widespread economic uncertainty. “The tariff discussions and news flow saw a lot of timelines pushed out, but I feel deals are coming back in
It takes a market-wide crisis to know how stable the underlying pipework is that supports it. In the $7.5 trillion foreign exchange market, the measure of its stability is liquidity. This was put to the test last month, as intraday volatility triggered by president Donald Trump’s tariff announcements on April 2 resulted in an explosion
