Feature/Trading
FX Focus - EM currency markets face fragmented 2014
Emerging markets were rattled by the Federal Reserve’s talk of tapering its quantitative easing programme in 2013. Will 2014 see more of the same? Or will emerging market currencies dance to a different tune?
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…
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
Political risk biggest challenge for Mena investors
Unable to predict the outcome of current turmoil in Syria and Egypt, investors have mixed outlooks for the Mena region over the coming months
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…
Demand for new FX trading platforms boosts providers
New trading platforms are being created to fill the gap between incumbent providers and the more niche areas of the market. Saima Farooqi looks at some of them
Taking HFT to task
As a small group of high-frequency traders (HFTs) rise to prominence as market-makers in spot FX, the reliability of their prices during times of market stress has been called into question – so much so that electronic trading platforms are taking steps…
Currency carry trade losses overshadow diversification benefits of currency
Currency manager Ugo Lancioni says investors still scarred by losses linked to carry trades are missing out on the diversification benefits of other strategies. Saima Farooqi reports
Offshore deliverable renminbi derivatives market grows despite fall in trade volumes
Despite a fall in offshore renminbi trade volumes, dealers say corporates are making increasing use of CNH forwards and options markets to hedge price exposure. Joti Mangat investigates
The future frontier of FX trading
At the FX Week USA conference in New York on July 10, FX Week gathered together three recipients of the e-FX achievement award – Jas Singh at Thomson Reuters (2009); Clifford Lewis at Currenex (2010); and Gil Mandelzis at EBS (2012) – to discuss the…
Single-dealer platforms win out in electronic FX options trading
Forex option volumes and liquidity are increasing on electronic trading platforms, as providers push through the operational and competitive challenges of delivering streaming, executable prices to a diverse customer base. Despite apparent regulatory…
Seeking a better benchmark for currency manager performance
With more mainstream advisers offering access to managed FX investments, bigger and increasingly sophisticated audiences are driving index providers to upgrade benchmarks and make them investable. However, some managers remain unimpressed by the existing…
Taking stock of 2011: Volatile trading
The challenges already thrown at the FX market in 2011 have been multi-faceted, ranging from a tough trading environment in major currency pairs to the preparation for new trading and clearing regulations. In the second of a series of articles taking…
Taking stock of 2011: the euro
The challenges 2011 has already thrown at foreign exchange market participants have been multi-faceted, ranging from a tough trading environment in major currency pairs to the preparation for new trading and clearing regulations. In the first of a series…
All in accord on high-frequency risks
In late June four prime brokers and six ECNs allied together in a major new initiative to better monitor and manage the risks posed by high-frequency trading in the FX market. What motivated the collaborative effort? Farah Khalique reports
Trading platforms prepare for Sef arms race
As the CFTC prepares to close the consultation period on its Sef rulemaking next week, it is still unclear exactly what changes FX trading platforms might need to make to comply with the Sef criteria. How are the potential Sefs preparing? Chiara Albanese…
Social media finds a foothold in FX
Banks are evaluating the value that can be delivered to the foreign exchange business by investing in social media. What are the potential benefits and challenges of using such tools? Chiara Albanese reports
Multi-bank options platforms: the vision versus the reality
New platforms offering multi-bank FX options trading are finding it tough to manage the manual pricing processes of banks and the complex close-out arrangements inherent in options. Farah Khalique reports
Pure FX: Market or mirage?
Pure FX has been the subject of plenty of speculation since it was first mooted last year, but there is still little clarity over whether the project will come to fruition. Some banks and trading platforms say there is no need for the venture
Algo trading could benefit from Sef rules, say participants
Algorithmic trading has gained traction in the FX markets in recent years and some providers say their platforms might comply with the criteria for swap execution facilities in the US. Could they face a growth opportunity when the regulations come into…
Banks raise concerns over liquidity in new FX options ventures
New York-based interdealer broker GFI Group last week completed the launch of its FX options trading platform, joining a handful of entities rolling out such platforms. Will banks provide liquidity to the new ventures? Farah Khalique reports
PPP still has legs in the USD/CAD market
Irene Aldridge, quantitative portfolio manager at Able Alpha Trading, and Steven Krawciw, wealth management executive at Credit Suisse in New York, look at the value of PPP in quant strategies
Prop traders continue shift to independents
The flow of proprietary foreign exchange traders to independent prop trading houses shows no sign of abating, as uncertainty over remuneration and reduced risk appetite continue to plague global banks.
FX prime brokers adjust pricing
The financial crisis has caused foreign exchange industry executives to take a wide variety of steps to adjust to changing circumstances.