Opinion
Voice brokers are adapting to survive
The decision by Icap to move voice-broking staff from the majors to emerging markets shows that the company has realised that the FX landscape is evolving rapidly and is ready to evolve with it. It also demonstrates that the role of the voice broker will…
Preparing for a return to volatility
Persistently low levels of volatility have made it tough to trade the currency markets since late august. Simon Derrick, head of currency strategy at Bank of New York in London, investigates whether the past few months have been anomalous, and how to…
Proportionate regulation is the key
The move by the US and UK regulators to work in closer co-operation can only be a good thing for the market as a whole.
Margin trading – an untapped opportunity
Brian Maccaba , executive chairman of Cognotec, highlights the huge growth in web-based FX margin trading and argues that banks cannot afford to ignore the opportunities that this presents
Complacency leads to a hard landing
Going against consensus view, Sharada Selvanathan , currency strategist at BNP Paribas in Singapore, advises preparing for a hard landing in the US economy
Icap should get the options ball rolling
The FX Week Europe Congress was the biggest and best yet. The brightest star among many was Michael Spencer, chief executive of Icap, who explained his plans to expand his business into electronic FX options.
Staying a step ahead of the pack
Icap's move to shift the emphasis of its voice-broking capabilities to emerging markets is indicative of how the company has achieved its current dominant position as a global force in money broking.
Taking advantage of variance swaps
Loïc Henry, head of structuring at Calyon in Paris, suggests using variance swaps to trade non-directional strategies in an environment of low volatility
M&A flows – the Aussie angle
Sharon Yeshaya, FX strategist at Morgan Stanley in New York looks at the effect the current M&A cycle will have on the Australian dollar
Businesses must move with the times
Fear of the unknown often prevents businesses from achieving their potential.
Hedging ahead of takeover activity
Stephane Knauf, Global Head of FX Structuring at Citigroup in New York, proposes deal-contingent forwards and options to hedge risks ahead of a potential cross-border acquisition
London lords it over continental rivals
London remains the heart and soul of the foreign exchange industry, with its position as the global financial capital of the world confirmed by a report published by International Financial Services, a London-based research firm.
Headwinds are set to hinder the rand
Razia Khan, senior economist at Standard Chartered in London says the fundamentals for the rand are not supportive despite a recent rally
How to play gravity-defying USD/JPY
Peter Luxton, Global Markets Adviser and Shant Movsesian, Senior Options Analyst at Informa Global Markets advise taking dollar bulls into account when trading on potential weakness
You can judge a book by its cover
Market participants of all shapes have access to a bewildering choice of platforms on which they can transact their FX business. There is a huge financial gap between the multi-billion dollar hedge fund and the hobby investor who wants to trade with a…
Managing exposure to forex volatility
Manuel Deijk in the structured FX team at UBS looks at a selection of quantitative methods applied in the implementation of FX risk management policies
Real strength set to continue
Gray Newman, senior Latin American economist at Morgan Stanley in New York, says that the Brazilian unit will be supported by interest rates and continuing growth
Human touch will always be needed
Markets have been on the move again this week. Comments from retired Fed chairman Alan Greenspan about the US housing market and noise surrounding China's reserve policy ensured that the greenback at last broke through the 1.26–1.28 range that it had…
Decoupling is key to Asian strength
Stephen Jen, head of currency research for Morgan Stanley, and Charles St-Arnaud, acting Asian currency strategist in London, say Asian currencies will strengthen once Asia decouples from the US
CLS: a slow adopter, sticking fast
The move by CLS into China reflects well on the settlement system. The fact that the bank-owned utility spent more than two years diligently negotiating Bank of China’s (BoC) path to becoming a shareholder shows it is genuine about welcoming emerging…
Missing links in Korea and Taiwan
Mirza Baig and James Malcolm, FX researchers at Deutsche Bank in Singapore, examine the relationship between the Korean won’s surplus and changes in the Taiwanese dollar
The underrated value of a quiet market
History shows that times of strife produce the greatest technological innovations. The First World War hastened the use of aircraft as a practical technology rather than a hobby for the wealthy. The Second World War sped mankind’s journey into space and…
Black clouds over the greenback
David Woo, head of global FX strategy at Barclays Capital in London, looks at the threats to the US dollar from Chinese trade and a weak housing market