Liquidity drought’s conflicted Cassandras
Information trumps execution
Structural problems and over-leverage mean the focus will switch to Asia for the next global currency moves.
July 2015 |
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Final implementation of MiFID II is now just under 18 months away, yet the systems required to comply with the APA regime for pre- and post-trade reporting have not yet been built. Time is running out for the industry to assess the implications of these rules and to build the systems to comply, says Chris Leonard-Appleton at Thomson Reuters.
Euromoney can reveal more details emerge about IG’s alleged failures to deliver best-execution practice on Black Thursday.
P2P FX is rapidly gaining traction in the retail space, but even providers acknowledge it will take time to achieve significant volumes at the upper end of the corporate market.
While the central bank has ruled out further currency devaluation, markets continue to price in a weaker naira and the prospect of weak foreign capital inflows.
CLS, the provider of settlement services for FX, is inching closer to bringing the Hungarian forint into the fold of currencies it settles. This is just one of a catalogue of projects the group is working on, as it extends its settlement reach further across the FX world.
Six months have passed since the Swiss National Bank (SNB) scrapped its EUR/CHF 1.20 floor on January 15, unleashing a torrent of volatility and burning traders across the globe. What lessons should we remember from one of the craziest days in currency markets?
Renminbi internationalization a big opportunity; commodities counterbalance bank retreat.
The headline results of Euromoney's 2015 foreign exchange survey show the leading banks have been remarkably consistent, despite the upheavals in the sector. But, beneath the surface there are changes that will transform the competitive landscape of the industry. Deeper analysis of the survey results demonstrates that’s already starting to happen.
In the absence of an industry-wide consensus on faster settlement, availability of real-time FX conversion is likely to remain patchy – challenging the growth of immediate payments in corporate banking.
Lawyers and hedging consultants are reporting a rise in mis-selling accusations from companies in the travel and leisure sector, over complex currency derivatives sold to them by their banks and brokers. These cases are in their infancy, but are predicted to rise as the mis-selling scandal broadens from interest-rate hedging products to forex products.
Inertia around the mandating of FX activity on swap execution facilities (SEFs) by the Commodity Futures Trading Commission (CFTC) continues to favour Europe as a trading location.
The widespread practice of internalisation in foreign exchange has officially come under fire from regulators for a lack of transparency and is fast losing its shine, but it remains crucial to the smooth running of the world’s largest market.
While hedge funds increase their use of algorithms, corporates continue to execute only modest volumes.
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Banks are making steady progress in cleaning up their foreign-exchange businesses in the wake of regulatory investigations into rigging currency markets, according to the chair of the Financial Stability Board’s (FSB) FX benchmarks group Guy Debelle.
A lack of attractive investment opportunities in pure currency hedge funds means investors looking for FX exposure might be forced to invest elsewhere.
View full results from Euromoney's 37th annual survey of liquidity consumption within the global FX markets.
Fintech start up aims to spot market rigging, using clues in how traders talk, not what they say
An in-depth guide to global currency wars; how Beijing is seeking to globalize the renminbi, through currency swaps and trade-financing facilities; the rise of the offshore bond market; and how fee-hungry banks are salivating at the prospect of the RMB’s growth.
Demand for single-dealer platforms continues to drive adoption of platform-as-a-service (PaaS) in the FX space, allowing smaller players to compete with the top-tier firms in pre- and post-trade services.
FX managers see growth in active currency hedging and alpha-generating FX funds in the years ahead.
Providers of FX transaction cost analysis (TCA) are proof ‘it’s an ill wind that blows nobody any good’, as they aggressively promote their services to institutional clients after fixing scandals.
In addition to facilitating more efficient payments, corporate cards can also help treasurers reduce their FX costs.
China’s bid to join the currencies in the IMF’s SDR basket is more than a footnote of interest only to economists. Policymakers should take note.
The benefits of in-house banks are evident to companies with businesses in multiple countries and substantial FX exposure, although implementation challenges can be considerable.
Banks cannot afford to ignore the potential value of using insights from data analytics to personalize their FX services.
A number of extreme market events in recent months, combined with ultra-loose monetary policy by the world’s leading central banks, have changed the relationships between many asset classes, including the euro, Swiss franc, yen and sterling.
Market volatility has impacted FX risk-management processes, although differing approaches to technology investment means the effect on market participants has been uneven.
After years of modest growth, currency hedged exchange-traded funds (ETFs) are capitalizing on the travails of the euro and yen.
A review of EMIR reporting is under way as the industry lobbies regulators to move to single-sided reporting for OTC derivatives and remove the reporting requirement for exchange-traded derivatives. What’s more, cross-border harmonization of derivatives regulation is way off.
A series of market disasters in recent years, culminating in the SNB’s decision to abandon its peg to the euro, have forced banks to reconsider their commitment to the prime brokerage (PB) business, leaving many smaller hedge funds and other clients in the cold – but a new generation of providers is taking their place, promising to revolutionize the business.
As the Bank of England (BoE) prepares to publish its final report on fair and effective FICC markets on Wednesday, a senior official acknowledges there is little support to extend exchange trading beyond what is mandated by the G20.
Opportunity for banks same as in FX; Goldman investment ‘a positive signal’
Recent currency movements have highlighted the limitations of the forward as a hedging option for emerging market (EM) currencies.
Opinion is divided on the extent to which private-bank clients should be encouraged to consider FX as an asset class and to look at strategies to generate returns from currency volatility. In any case, most private-bank clients are dollar bulls.
The Swiss National Bank has been under sustained fire in its attempt to defend its euro peg in recent years. Accordingly, the shift in the long-defended policy regime has shocked markets and will have far-reaching implications for the euro, eastern Europe and private banking, among other things. Euromoney investigates.
The journey to financial process transformation DONG Energy
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Transparency in the FX industry
Looks Can Be Deceiving
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