Author Archives: Paul Blank

About Paul Blank

A career working in financial markets. Early career as an FX Trader, before moving on to e-Trading platforms and Fin-Tech solution providers. This blog looks at how evolving regulatory landscape impacts market participants across the capital markets, e-trading platforms/venues.

EuroMoney 2018 FX Survey…Go XTX!

EuroMoney 2018 FX survey results released this week show JPMorgan are for the first time #1 in FX, but the real story is the absolutely astonishing performance from XTX Markets, now ranked #3 in global FX. XTX Markets are the … Continue reading

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Major platforms see increases in Feb volumes

All the major FX platforms have now reported their Feb 18 vols, with SpotStream leading the way up 10% to a new all time record of $28.8bn/day, whilst HotSpot also recorded a new all time record of $44.2bn/day. Reuters Spot … Continue reading

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Major platforms deliver strong Jan volumes

All the major FX platforms I track reported strong Jan 18 vols, lead by EBS up a whopping 58% to $93.2bn/day (up from $65.5bn/day in Dec). Both Hotspot (now owned by CBOE) and SpotStream hitting new all time high volumes. … Continue reading

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Results of Oct 17 Semi Annual FX Surveys

Latest semi-annual FX survey data from top central banks (FX Joint Standing Committees) show that in Oct 17 FX average daily vols (ADVs) for the top six FX centres was $4.28tn/day, an drop of –6.2% from Apr 17, although up +3.4% year … Continue reading

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Global FX code ‘Last-Look’ (Principal 17) updated.

As mentioned previously, The Global Foreign Exchange Committee (GFXC), has updated their guidance around ‘trading in the last-look window’ – Principal 17 of the Global Code of Conduct, as a result of market feedback. The previous version of the code included the … Continue reading

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Credit Suisse fined $135m for FX abuse

The New York State Department of Financial Services (DFS), has fined Credit Suisse $135m for ‘Unsafe, Unsound and Improper Conduct’. The transcript of the order makes for depressing reading, when we see the extent of the improper conduct and abuse of … Continue reading

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GFXC to change Principal 17 (Trading in last-look window) after market feedback

In last week’s post, we looked at the feedback received from the market by the Global Foreign Exchange Committee (GFXC) to Principal 17 of the FX Global Code of Conduct, which discusses ‘trading in the last-look window’. In light of … Continue reading

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Major FX platforms report weak Oct volumes

All the major FX platforms I track reported weak Oct volumes, with EBS leading the way down -17% drop in ADV to $80.6bn/day ($97.4bn/day in Sept). The drops come after strong Sept figures, but still leaves most platforms with small … Continue reading

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RIP….Last-look? Depends who you ask

Back in 2015, just before the publication of the Fair and Effective Markets Review (FEMR) report, that led to the FX Global Code of Conduct, I wrote that it was time to Say goodbye to last look. A few months … Continue reading

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How the network effect is solving challenges in bond liquidity

The fixed income landscape is very fragmented, at last count there were around 137 fixed income venues (according to John Greenan’s blog post). Reduced balance sheets due to Basel III, and lower leverage ratios have resulted in sell-side firms losing their … Continue reading

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Market-Making under MiFID II SI regime, no more Matched Principal Trading

What’s going to happen to market-makers that operate a mix of ‘principal’ and ‘risk-less matched principal’ after new Systematic Internaliser (SI) regime comes into effect next year under MiFID II? Systematic Internalisers (SIs) must operate as a bi-lateral principal based business. … Continue reading

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FinTech, innovation in Cap Markets – research by Opimas

An interesting research report caught my eye this week, although it was published in Aug by Opimas entitled FinTech Spending and Innovation in Capital Markets. The report splits FinTech players into three categories: Capital markets players are indeed bullish on the … Continue reading

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Outlook for Wholesale Banks & Asset Managers – Oliver Wyman research

Another excellent research report from Oliver Wyman called Wholesale Banks & Asset Managers, subtitled The World Turned Upside Down Oliver Wyman see a reversal of fortunes for Wholesale Banks and Asset Managers. The effects of Quantitative Easing (QE) and bank regulation drove a more than $100BN divergence in revenues since 2011, … Continue reading

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Major FX platforms report strong Sept volumes

The major FX OTC platforms have now all reported their Sept volumes. After a slow summer, all the major platforms have reported strong rises in Sept, as shown in the table below. FastMatch lead the way with an impressive 28% … Continue reading

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Global FX vols up driven by UK

Latest semi-annual FX survey data from top central banks (FX Joint Standing Committees) show that in Apr 17 FX average daily vols (ADVs) for the top six FX centres was $4.56tn/day, an increase of +5.5% from Oct 16 and +7.5% … Continue reading

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EuroMoney 2017 FX ranking some interesting trends

The latest 2017 EuroMoney FX survey ranking has been published. The market has moved on from ‘flow monsters’ seeking market share at all costs. Today with balance sheet constraints, reduced risk appetite and tougher leverage ratios, quality and profitability of … Continue reading

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FX Global Code of Conduct

It’s finally been released, the 76 page FX Global Code of Conduct, developed by the Bank of International Settlements (BIS), in conjunction market participants and working groups, to provide a common set of guidelines to promote the integrity and effective functioning … Continue reading

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Relative price paid for FX ECNs

Pan European Exchange EuroNext, is paying $153m to buy 90% of FX ECN Fastmatch full details here According to the press release the rationalise for the purchase is given as: The transaction to strengthen Euronext’s product and geographic diversification and … Continue reading

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Regional banks upping their game in FX

Since almost forever, the global top tier banks have dominated the FX markets. One only needs to review the EuroMoney FX bank rankings to see the global elite ‘flow monster’ top ten are pretty much the same group today as … Continue reading

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Top tier FX Platforms Mar 16: Reported weak results, EBS volumes sharply lower -18.4%

In terms of Spot FX, all the major platforms delivered lower results in Mar  16. EBS -18.4% to $83.7bn/day ($102.6bn/day in Feb 16), down -26.9% compared to Mar 15 level of $114.5bn/day Reuters spot -6.3% to $104bn/day ($111bn/day in Feb 16), down -21.2% compared to Mar 15 of $132bn/day The … Continue reading

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FX platform vols for March 16

Second tier FX volumes reported weak volumes figures in Mar 16, with Hotspot  showing a -19% fall to $26.4bn/day, whilst FastMatch reported a smaller decline of -9% to $10.1bn/day. Table showing Second Tier platforms: Hotspot, Fastmatch vols for Mar 16 Meanwhile the only top-tier platform to … Continue reading

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The Capital Markets’ Industrial Revolution

Interesting comparison from GreySpark in their latest research report. Comparing the digital transformation of investment banking to the automation of manufacturing processes in industries such as motor and aircraft manufacturers. Their report draws analogies, between investment banking, and the motor and aircraft industries, which … Continue reading

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FX platforms reported drop in Feb 16 vols, led by Reuters spot down -10%

In terms of Spot FX, all the major platforms delivered lower results in Feb 16. EBS -1.2% to $102.6bn/day ($103.8bn/day in Jan 16), up +9% compared to Feb 15 level at $94.1bn/day Reuters spot -9.8% to $111bn/day ($123bn/day in Jan 16), -2.6% compared to Feb 15 at $114bn/day The … Continue reading

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Deloitte 2016 Global FX survey

An interesting FX survey from Deloitte provides insight into the challenges corporations encounter when managing currency risk and possible causes (and solutions) for these challenges, as well as FX risk management structures, strategies, and processes adopted by companies across the globe. … Continue reading

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Electronic trading in fixed income markets: report by BIS – worth reading!

An interesting report (well worth reading), published in January by The BIS (Bank of international settlements), looks at the impact of ‘electronification’ of the fixed income markets. The report was based on structured interviews with market participants,  and a survey of electronic … Continue reading

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Mandatory Swaps Trading on SEFs increases liquidity and lowers costs – BofE reseach!

Some interesting findings from a paper from the Bank of England, which looked at the impact of mandatory trading on swap execution facilities (SEF), for interest rate swaps (IRS) as required under Dodd Frank Act. The paper looked at transactional data … Continue reading

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The continual rise of non-bank market-makers

Looking at the rise of alternative, or non-bank market makers, armed with market leading technology, talented etrading techies from sell-side firms and teams of razor-sharp quants, these firms are now providing deep consistent liquidity to the market in a capacity previously … Continue reading

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Say goodbye to ‘last-look’ in FX?

It’s about time, that the practice in FX of liquidity providers having a ‘last look’ before accepting a trade – a legacy from the old days of phone quoting, when the dealer took one ‘last look’ at pricing before accepting a trade … Continue reading

Posted in liquidity, Opinion, regulation, Uncategorized | 1 Comment