Articles by Michael Watt
FX market participants express concern and confusion over Sef trading
Trading on swap execution facilities in the US was introduced in a cloud of confusion and uncertainty. The market seems to have recovered from the initial shock, but there are concerns that Europe’s take on Sef trading will do longer-lasting damage. By…
Lynn Challenger talks to FX Invest
Michael Watt asks Lynn Challenger, managing director of global trading at Mellon Capital Management, about the ups and downs of 2013, the merits and demerits of FX trading styles, and his outlook for 2014
Systematic FX traders search for solutions after tough year
Some say systematic trading’s reliance on macro events and its slaveish dependence upon automation produces inconsistency, but is discretionary trading any better? Maybe a combination of both could be the answer. Michael Watt reports
SEB reclaims Scandi award after a one-year hiatus
The ongoing strength of the Swedish krona has been a challenge for Sweden's exporters, but SEB returns to form this year to win the award for Scandinavian currencies
ACT hires UBS's Meyer to run structured products venture
ACT Currency Partner continues its expansion with the launch of an FX structured products offering, managed by a veteran of UBS
Systematic strategies will bounce back, say managers
Despite the recent bankruptcy of FX Concepts, some currency managers believe systematic investment strategies could soon make a comeback
Standardisation needed in Sef reporting conventions
Sefs agree a lack of clarity on reporting requirements has created an inconsistent and fragmented view of trading activity
FX Concepts pays price for not adapting strategy
Bankruptcy of the currency management firm is due to its failure to react to new market realities, say competitors and insiders
Chaotic birth of Sefs drives NDF trading off platforms
The first two weeks of Sef trading have seen some trading volume in non-deliverable forwards migrate to single-dealer platforms and voice brokers to avoid the rules
US political gridlock puts EM currencies in stasis
EM currencies could still be badly affected by US default, say traders
FX Concepts teeters as clients exit and AUM plummets
Assets under management at FX Concepts have continued to fall and the fund's chief strategist confirms the board's ideas haven't worked so far
Oanda acquires Currensee copy trading platform
FX copy trading platform will strengthen Oanda's product offering
CFDs gain reprieve from CVA threat
The reports of CFDs’ demise were greatly exaggerated, writes Michael Watt. Far from being killed off by the CVA charge, they have probably been saved by one of the clauses in the new rule
FX structurers take advantage of high-cost hedging in other asset classes
FX structurers are trying to tempt clients away from high-cost asset classes such as rates and credit by replicating the hedges on offer there through proxy instruments, but will buy-side participants trust the correlations to hold up when the worst…
State Street's Collin Crownover talks to FX Invest
State Street Global Advisors’ head of currency management talks to Michael Watt about his view of 2013 so far, the future of central bank involvement in the direction of major global currencies, and the impact of new regulation on the FX market
Volcker rule curtailing FX liquidity, say buy-side participants.
Investors say foreign exchange market-makers are already trimming risk appetite ahead of the Volcker rule ban on proprietary trading in the US. But, while liquidity in emerging market and frontier currencies has suffered, other market participants…
Currency managers caught out by dollar rise against EM currencies
Immediate future of emerging market currencies in the hands of the Federal Reserve amid QE tapering expectations
Shadow of Cyprus crisis remains cast on retail FX
Some retail brokers in Cyprus claim the recent crisis has driven concentration of clients among larger firms, but others argue there is little data to support this
Royal Bank of Scotland to exit CFD trading
RBS informed customers this week that its marketindex CFD business will close in November
FX structurers see mixed demand for cross-asset hedges
Increased hedging costs in rates and credit has led some investors towards FX structured products, but some remain concerned that correlation may not hold up
Rates volatility buoys hopes for currency forwards desks
Banks are preparing for a return of investor appetite for FX forwards, driven by the prospect of interest rate hikes, but some face challenges when it comes to expanding their teams as a result of the Libor scandal. Michael Watt reports
Saxo Bank adds ruble pairs to options platform
USD/RUB and EUR/RUB will be added today as the Danish bank answers increasing client demand for the ruble
Buy side scales back on yen positions as volume dips
Market participants report a significant decline in investor and corporate appetite for the yen, following the rush to the currency in the first quarter