Offshore speed, onshore depth: a new reality for FX liquidity – FX Markets Skip to main content End of drawer navigation content Stark differences emerge between onshore and offshore pricing during macroeconomic news events, finds LMAX Group’s head of data In foreign exchange spot markets, speed has long been treated as a reliable guide to […]
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
Three characters are causing a crisis of confidence among back-office staff at UK and European banks, brokers and investment firms: T+1. After laying out a roadmap for next year’s switch to one-working-day trade settlement, regulators and industry execs are haggling over the finer details, and companies are under notice to put their plans in place.
Why FX liquidity is harder to read than ever – FX Markets Skip to main content End of drawer navigation content A breakdown of FX execution methods shows how liquidity is truly formed, writes Isomiq’s Jamie Rose The BIS Triennial Survey headline for April 2025 is something that has been widely publicised and talked about:
Hey, buy-side trader – are you active in foreign exchange? Ever been irritated by the lack of control you have when trading via one of the big FX platforms? Occasionally wonder if there’s another way? JP Morgan Asset Management has been there, too, and found a way. The firm does all of its spot, options,
Rollercoaster year for FX traders ends with G10 volatility and hedging flows back where they started Source link
A surge in uncollateralised foreign exchange forwards hedging from buy-side clients could put bank balance sheets under pressure, dealers warn. FX hedge ratios at asset managers and pension funds have not materially increased in 2025, despite the selloff in the US dollar in the second quarter. This may change, though, as narrowing interest rate differentials could
FX markets are undergoing rapid structural change as venue fragmentation, rising technology costs and shifting liquidity patterns reshape how firms trade and access risk. Against this backdrop, the inaugural FX Trading Leaders’ Network examined which developments are helping or hindering execution quality, where transparency is evolving and how market participants can best adapt to an
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
Interbank foreign exchange swaps trading has stagnated since 2022, as banks turn to the forwards market for their short-term liquidity needs, according to the Bank for International Settlements. FX swaps remain the largest segment of the FX market with average turnover of $4 trillion a day as of April 2025, a rise of 6% since
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
Dealers might be nearing their capacity for Turkish lira options-based carry trades, as liquidity pressures, market risk and unwind concerns begin to constrain the amount of new trading they can support. The lira carry trade has been a favoured strategy among hedge funds and institutional investors this year, owing to the whopping 40% carry on
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
Vendor tools offering counterparty suggestions to foreign exchange traders should not replace a firm’s own execution assessments, warn market participants. The products, aimed at cash FX trades, can use firm-specific and communal execution data to help buy-side firms standardise and automate counterparty selection. Major transaction cost analysis (TCA) providers BestX and Tradefeedr each offer a
e-FX awards 2025 – the winners – FX Markets Skip to main content End of drawer navigation content Barclays, DB and State Street take two wins each, while Citadel, Citi, JPM and BNP also take top slots FX Markets is proud to announce the winners of the e-FX Awards for 2025. The roll of honour
The popularity of hybrid options is expanding beyond hedge funds, with a growing number of asset managers, pension funds and insurers taking advantage of dislocated correlations between asset classes for yield enhancement and cheap long-term hedging. “The biggest chunk has been with hedge funds, but some of the largest trades have been done with asset
Hugh Stevens has joined Wells Fargo as head of electronic foreign exchange trading for Europe, the Middle East and Africa (Emea). Stevens previously spent over seven years at Standard Chartered in London and New York, most recently as head of e-FX trading for the Americas. He reports to Chad Berner, head of electronic and G1O
