Row 1 - Latest/Ad/FXSurvey/Surveys/Ad

Brazil’s currency hit an all-time low nominal value on November 18, closing trading at R$4.20 to the dollar.

Implementation of FX transaction cost analysis (TCA) appears to have stalled, with the impracticality of conducting analysis across every available venue encouraging many parties to rely on venues or dealers to measure execution, despite concerns over transparency and impartiality.

Corporates often perceive options as an expensive means of hedging FX risk compared with forwards, but a number of market developments have increased their attractiveness as a tool for reducing currency exposure.

Esma no longer feels it needs to impose EU-wide leverage limits on the FX contracts for difference (CFDs) market, but there is little evidence to suggest its efforts to protect retail traders have done anything other than push business offshore.

Corporates' increasing need to use treasury resources more efficiently has persuaded BNP Paribas to partner with fintech Kantox to offer a new dynamic hedging solution to clients.

While spot volumes remain below 2013 levels, the latest BIS triennial central bank survey notes that FX markets have recovered from the decline recorded in 2016 on the back of strong growth in swap and forward transactions.

It has just received a very public vote of no-confidence from non-bank liquidity providers, but concerns around transparency are yet to outweigh the perceived benefits of last look.

Cash flow at risk and earnings at risk can help ensure FX risks are reported correctly, but treasurers need to do more to convince senior management to move away from tried and trusted methods that are no longer fit for purpose.

Other players are expected to follow Goldman Sachs and BNP Paribas in introducing algos designed to source both internal and external liquidity for FX NDFs, despite limited liquidity in many non-deliverable currencies.

A reluctance to dispense with legacy technology, combined with heightened regulatory oversight and changing liquidity provision from banks, has seriously complicated the execution management system (EMS) selection process for FX traders.

Questions about Deutsche Bank's restructuring multiply with each tactical shift, increasing the premium placed on any areas of real success – such as its Autobahn platform.

While Euromoney turns 50 this year, our first big survey was launched 40 years ago – and to this day, the FX survey remains the benchmark for the foreign exchange industry. We look back on four decades of data to analyze how the market and the competitive landscape have changed.

While the ability to run simulations based on hypothetical future as well as historic data is appealing, there is no guarantee that testing algos against both types would make them operate more efficiently in stressed market environments.

Citi’s latest global corporate benchmarking survey shows that companies are worryingly complacent about their potential exposure to emerging market currencies and remain reliant on manual processes to manage risk.

The recent withdrawal of Stater Global Markets from the prime-of-prime broker market has underlined the need for providers to continue to prove their value to clients.

Space constraints in data centres, coupled with cost considerations, have encouraged firms to seek creative solutions to the challenge of getting access to the main liquidity hubs.

The lack of a unified approach to circuit breakers in the FX market is said to be reinforcing loyalty to OTC trading and stifling enthusiasm for exchange-based activity, despite the protections such mechanisms can offer.

While all the conditions for increased corporate enthusiasm for foreign exchange hedging appear to be in place, uneven demand suggests lack of consensus on how best to manage currency volatility.

The absence of a regulatory imperative has not deterred FX traders from increasing their use of transaction cost analysis tools, in turn increasing the pressure on brokers at a time when margins are already thin.

The 100-day mark of Brazil’s new president, Jair Bolsonaro, has recently passed; no one – not even the government itself – pretended the time had been well spent.

FX prime brokers are expected to adapt to the pricing challenges of uncleared margin rules, but it remains far from clear whether these rules will push the market definitively in the direction of central clearing.

Humanitarian crises are emerging market issues and local banks are the best way to distribute aid. Banks should make it easier and cheaper to get funds to them.

Determining when a client is in distress is not always a straightforward process – banks and FX platforms need to have processes in place to ensure losses are not compounded.

Bundling FX and non-FX services has become an established strategy for smaller prime brokers seeking a foothold in a market where the barriers to entry remain dauntingly high.