Trading
FX vol markets shrug off US election fears
Vols are trading below their pre-election levels despite uncertainty over result
HKEX to clear SOFR cross-currency swaps from early 2021
Legacy Libor cross-currency swaps could move to SOFR discounting at the same time
FX volatilities fall on receding US election fears
Polls point to a decisive Biden win – though some worry market is being complacent
FX headwinds cancel out HSBC’s Q3 RWAs cut
Portfolio reductions reaped $10.8 billion of RWA savings
PBs seek remedy for credit addiction in FX
Group set up after big Citi loss considers limit-checking hub, among other options
Time to reverse the fragmentation of FX liquidity
Vikram Srinivasan, head of spot product at 360T, argues that using technology to reverse the trend of liquidity fragmentation in FX will ultimately benefit market participants
On dealer and currency choices, big US funds differ
Pimco, Vanguard and other fund giants account for up to 60% of forwards trades – but have very different hedging needs and dealer panels
Kaufmann joins NatWest as FX structuring head
UK bank hires former UBS and Barclays structuring chief
Citi promotes Perkins and Wilson to top clearing post
US bank creates clearing co-head role in wake of Kemp’s retirement
Forward momentum: the new world of NDF trading
NDF landscape is changing as trading volumes drive electronification and algo execution – but challenges remain
Argentina allows peso to fall faster
Central bank increases repo rate as currency falls and inflation rises, despite severe GDP contraction
Filings reveal biggest FX forwards dealers
Counterparty Radar: Group of four banks executed 47% of sector’s trades during second quarter
Taiwanese central bank asks for smaller dollar trades
Large dollar orders may slow down foreign exchange transactions, central bank says
An end to the loveless marriage with the US dollar?
Covid-19 represents an unexpected shock that could cause further US dollar decoupling, which could show up in next week’s Cofer data release, writes Gary Smith of Tabula Investment Management
FX swap volumes set to rise on China govvies index inclusion
Traders expect greater use of FX derivatives if FTSE Russell adds bonds to the WGBI this week as expected
The importance of minimising market impact
Market impact is a nuanced subject – one industry veterans are well aware of. But, with fundamental changes over the past decade shifting how FX markets function, a swath of new service, technology and liquidity providers has emerged. David Fineberg,…
How Shell integrated FX algos into its corporate treasury mix
Interview: oil giant puts up to 50% of spot flows through algos, explains FX head Michael Dawson
Nomura targets US in FX rebuilding effort
Return of volatility sees Japanese bank rehire in New York and focus global business on Asian pairs and FX options
MUFG: Covid response could spur e-FX shift in Japan
FX head says operational agility during pandemic could lead to greater electronification
FX research bounces back amid volatility
Dealers report sharp rise in client demand for research
Bargain-hunting equity hedgers turn to FX
Currency options are cheap relative to stock index puts, but correlations are uncertain
FX unlimited: how Eaton Vance tackles credit constraints
Interview: Clearing has allowed firm to add 50% more LPs, says veteran trading head O’Brien
RMB hedging comes onshore as regulators liberalise FX market
Foreign investors turn to CNY for bond hedges as rule changes spur more competition
How did markets fare with volatility in the new liquidity landscape?
By all accounts, markets have been relatively subdued for the past few years. Simon Campbell, group head of trading at CMC Markets, discusses how – while there have been occasional flurries of volatility around Brexit, the US elections and the trans…