Renminbi options volumes plummet as vol grinds lower – FX Markets Skip to main content End of drawer navigation content USD/CNH volumes fell 84% in 2025 as PBoC currency management took hold The Chinese renminbi was only a few years ago considered among the most actively traded currencies in foreign exchange options. But volumes have […]
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
Wild dollar swing upended FX options hedges – FX Markets Skip to main content End of drawer navigation content Banks chased vol higher as last week’s EUR/USD surge knocked out barrier trades The selloff in the US dollar last week against the yen and euro forced many foreign exchange options dealers to hurriedly buy back
Will lifer exodus kill Taiwan’s NDF market? – FX Markets Skip to main content End of drawer navigation content Traders split over whether insurers’ retreat from FX hedging is help or hindrance The Taiwan dollar non-deliverable forward (NDF) market is the second largest in the world. But dig beneath the surface and the market has
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
US mutual funds slash short euro positions at record pace – FX Markets Skip to main content End of drawer navigation content Counterparty Radar: Pimco cut $4.6bn of EUR/USD puts in Q3 amid changing stance on dollar direction US mutual fund and exchange-traded fund managers cut $7 billion of euro/US dollar FX options positions during
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
Demand for protection against a selloff in key Latin American (LatAm) currencies has been rising steadily since December, as investors look to protect their carry trades from geopolitical impacts and dealers try to pare back tail risks. Foreign exchange options notional volumes in Brazilian real and Mexican peso reached $8.2 billion and $3.5 billion, respectively,
Rollercoaster year for FX traders ends with G10 volatility and hedging flows back where they started Source link
US insurers turn to short-dated FX forwards as notionals rise – FX Markets Skip to main content End of drawer navigation content Counterparty Radar: Trades under three months make up nearly 60% of total positions, up from just a third in 2022 US insurers ramped up their use of short-dated FX forwards to manage currency
The crypto market has endured its share of sharp corrections, but the October 10 liquidation event, with nearly $19 billion erased in hours, marked an important turning point. The scale was historic, but the outcome was not the systemic breakdown that defined 2022. Instead, it was a real-time stress test that the market, broadly speaking,
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
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
If the first half of 2025’s currency markets were characterised by record-breaking months of volumes and volatility, the back half of the year has been defined by a range-bound US dollar, promoting an environment for carry trades in emerging markets (EM), particularly in Latin America, to take off. Positioning in these strategies normally builds when
The Bank for International Settlements’ quarterly review, published today (December 8) finds market exuberance amid corporate bankruptcies, and gold losing its ‘safe haven’ status as its surging price correlates with that of equities. Hyun Song Shin, who leads economic work at the BIS, told a press conference on December 6: “What we definitely can say quite
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
A senior Singapore regulator has warned that Asia’s likely move to T+1 settlement must be carefully managed to avoid introducing new risks into the region’s financial infrastructure. Ian Chung, executive director of the markets, infrastructures and intermediaries department at the Monetary Authority of Singapore, said he saw a move to T+1 settlement as inevitable for
