Dealers expect an increase in deal contingent foreign exchange hedging activity in 2025, in conjunction with heightened takeover deals from corporates and private equity firms in the latter part of the year. “We’ve certainly seen an uptick in deal contingent hedging,” says Edmund Carroll, head of FX, rates and commodities corporate client solutions at UBS. […]
The London gold market is facing a mounting structural crisis. Bullion banks that lend precious metals to producers and each other moved over 200 tonnes of gold to New York in January in response to US President Donald Trump’s tariff threats, leaving the London market desperately short of physical supplies. Dealers in London routinely borrow
TD Securities and Goldman Sachs made the largest ranking moves among dealers serving the FX forwards market for European retail funds during the first half of last year. The Canadian bank gained $14.4 billion in notional from trades with Ucits funds, increasing its market share to 9.5% from 7% and becoming the second-largest dealer in
Corporates turn to structured notes to juice cash returns – FX Markets End of drawer navigation content Skip to main content Dual currency notes find favour with treasurers under pressure to boost yields amid higher rates Some corporate treasurers are taking advantage of more volatile foreign exchange and interest rate markets to invest their foreign
Non-bank market-maker XTX Markets has hired Sam Brook for its European foreign exchange and equities trading team. Brook joins from NatWest Markets, where he spent nine years in the UK bank’s electronic FX trading unit, primarily working on the buildout of its e-FX market-making desk. As part of the Europe, Middle East and Africa distribution
Foreign exchange losses have begun to mount for some of the largest global corporates, with the likes of Amazon, Apple and Nike reporting revenues negatively affected by continued US dollar strength in the fourth quarter. Since September, the dollar has risen by as much as 7% against many G10 and emerging market currencies, reducing the
Funds tap options on FX vol amid tariff disruptions – FX Markets End of drawer navigation content Skip to main content Dealers say vanillas, digitals and knockouts on realised vol increasingly used to navigate Trump news flow Hedge funds are increasingly taking out complex options structures that speculate on pricing of foreign exchange volatility levels
Corporates eye complex FX hedges as carry costs mount – FX Markets End of drawer navigation content Skip to main content Leveraged forwards and options-based structures entice treasurers facing rates uncertainty and FX volatility The shake-em-up economic policies trailed by new US president and so-called “disruptor-in-chief” Donald Trump have left corporate treasurers on both sides
Deutsche Bank has appointed Richard James from JP Morgan to run its foreign exchange single-dealer platform, AutobahnFX. James will be responsible for the growth and distribution of the bank’s electronic FX client offering for cash and derivatives, as well as algorithmic execution on the platform. He will be based in London and report to Ollie
A new framework for handling disruption events is at the core of work being carried out by the International Swaps and Derivatives Association to update its foreign exchange and currency option definitions, which is expected to be finalised this year. Much of the focus on drafting the new definitions, which have not been updated since
Does no-hedge strategy stack up for mag seven mavericks? – FX Markets End of drawer navigation content Skip to main content At Amazon, Meta and Tesla, the lack of FX hedging might raise eyebrows, but isn’t necessarily a losing technique The so-called magnificent seven – the seven largest US tech companies that famously make up
South Korea’s FX reforms working amid political crisis, dealers say – FX Markets End of drawer navigation content Skip to main content Martial law presented first test for reforms aimed at boosting deliverable KRW market Foreign exchange activity in the wake of South Korea’s political crisis indicates recent reforms aimed at bringing more Korean won
Amazon, Meta and Tesla reject FX hedging – FX Markets End of drawer navigation content Skip to main content FX Markets study shows tech giants don’t hedge day-to-day exposures Amazon, Meta and Tesla – three of the so-called magnificent seven tech firms that drive US stock market performance – decline to hedge their day-to-day foreign
Can you rent a liquidity provider? And not just any liquidity provider, but one like JP Morgan or Deutsche Bank, to gain access to their huge client franchises? This idea was raised during the FX Markets Europe conference in London on December 3 (if you weren’t there, you missed an excellent event). In outline, the
Franklin Templeton has become the largest user of foreign exchange options among US mutual funds, taking the top spot from Morgan Stanley Investment Management for the first time since the end of 2020. The California-based fund manager increased notional volumes by around $340 million during the third quarter of 2024, taking the total size of
