LCH’s ForexClear reported its highest stress losses since 2019 in the final quarter of 2025, while the share of initial margin posted by its five largest clearing members rose by 9 percentage points. The UK-based central counterparty (CCP) disclosed a peak stress loss of $1.1 billion under a single-member default scenario, up 42.8% from the […]
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
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
Vendor says automated data collection and cleaning helps corporates plan better hedges, with unexplained P&L moves cut by 87% When a corporate treasury is working out its foreign exchange hedging strategy, it needs to consult forecasted cashflows and revenues, as well as billing and invoices in foreign currencies. But this data is often messy, residing
Market participants desire more transparency when it comes to price discovery and mechanisms in benchmarking foreign exchange swaps and forwards markets, said panellists at the New York Federal Reserve’s FX market structure event. Traders and market venues have been exploring new ways to formulate an electronic FX swaps price discovery venue, but progress has been
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
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
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For most of modern market history, trading flows were seen as little more than the smoke from the fire – evidence of deeper forces at work. Growth, inflation, central banks, geopolitics: these were the “real” drivers of price action. Order books and positioning data simply reflected how investors responded. But that causality has shifted. Flows
Researchers from the Swiss National Bank have shown how a trading strategy that uses fine-tuned large language models (LLMs) to analyse sentiment in the foreign exchange market could outperform traditional language-based artificial intelligence methods. The authors of the SNB working paper, Daniele Ballinari and Jessica Maly, suggest that by fine-tuning LLMs to better understand the jargon
Niche FX crosses pop up in mutual fund options activity – FX Markets Skip to main content End of drawer navigation content Counterparty Radar: Fund filings reveal unusual FX options crosses – some never repeated, many with unclear strategies Over the five years of Counterparty Radar analysis, we’ve typically tracked the biggest trading firms, the
In the first half of 2025, the combination of US tariff announcements and fiscal and monetary policy uncertainty led to volatility in foreign exchange markets not seen since early 2020. During this period, FX central limit order books (Clobs) proved vital to traders for managing their risk, providing market transparency, deep liquidity and execution reliability,
For years, bitcoin was seen as a speculative outlier: volatile, loosely regulated, and detached from the macroeconomic fundamentals that drive traditional asset classes. Today, we’re seeing something different. Bitcoin is not just part of the global investment conversation, it also responds to it in real time. New research from LMAX Group, based on millisecond-level data
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
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
Fnality joins DLT-based PvP FX settlement service – FX Markets End of drawer navigation content Skip to main content Baton Systems and Osttra’s joint payment-versus-payment FX network adds central bank-backed settlement option Baton Systems and post-trade technology vendor Osttra have struck a partnership with Fnality to integrate its blockchain-based payments system to its payment-versus-payment (PvP)
Artificial intelligence has increasingly become an all-encompassing term in financial circles. But in foreign exchange trading, what does it actually mean? Banks have been vocal about how they have used AI for years when developing their execution algorithms, making documentation easier, and in their client chatbots. But from a trading perspective, arguably the more impactful
