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LATEST ARTICLES

  • The Securities and Exchange Commission (SEC) rejected an exchange’s request to list what would have been the first bitcoin exchange-traded fund (ETF), but it might not be long before such a digital currency fund becomes reality, say commentators.
  • A recent settlement between Citibank and the South African Competition Commission relating to FX manipulation could portend further lawsuits in several other jurisdictions, including the US and UK, but the prospects for potential claimants rely heavily on the outcome of the European Commission’s own investigation.
  • The traditional request-for-quote method of FX trading is far from going the way of the typewriter, even as volatility has boosted activity in all-to-all liquidity providers, whose transparency makes the practice of last look impossible.
  • CLS and TriOptima have marked a milestone in the development of the triReduce CLS FX Forward Compression Service by expanding it to allow a greater number of trades to be compressed.
  • Conventional wisdom says the UK’s forthcoming exit from the European Union will be bad for the pound, but after a year in which the UK currency has lost a fifth of its value on a trade-weighted basis, there are some in the FX markets who say the worst impacts of Brexit are already priced in.
  • The dollar’s multi-year bull run might last a couple more months, but its fundamental underpinnings are weakening.
  • Performance analysis solutions, once so pricey only the biggest banks could afford them, are becoming more widely used for FX strategies as regulations demand greater due-diligence processes and sell-siders are under pressure to prove they are giving clients value for money.
  • The Financial Conduct Authority’s (FCA) regulatory sandbox has been a hit with market participants and regulators alike, giving firms whose services were never anticipated by existing rules the chance to test out new features without fear of fines or enforcement action.
  • After a long period of dormancy, the Canadian dollar appears to have turned a corner in recent trading, as rising oil prices and a booming economy boosted appetite for the currency. But investors tempted to go long the loonie should beware hidden dangers in the Canadian economy, analysts say, including a housing bubble that could be set to burst.
  • Although use of mobile devices to place FX orders is growing steadily among retail traders, demand from sell-side institutional traders has stalled because of compliance and functionality restrictions.
  • FX market-maker XTX Markets is placing its bets on trade transparency, making a new tool available to the buy side that will, for the first time, enable them to calculate the cost of trades rejected by market-makers.
  • The story of convicted Trader A – Tom Hayes – lays bare the actions of a few cliques that masterminded the headline-grabbing Libor scandal, but despite Hayes’ conviction it is still notoriously difficult to pin blame on individual traders even if a firm admits wrongdoing.
  • The long-awaited addition of hedging functionality to online trading application MetaTrader 5 (MT5) appears to have convinced at least retail FX customers that, seven years after its launch, it might at last be time to trade up their trading platform.
  • The growing popularity of social FX trading has some platform providers worried that inexperienced traders are taking excessive risks through strategies they don’t fully understand.
  • One of the US president’s oft-repeated election promises was a tax holiday to encourage US corporations to bring assets held abroad back onshore – if he delivers, the dollar is likely to strengthen considerably against the currencies in which those assets are held, says Nomura.
  • Call it what you will – currency war, competitive devaluation, currency manipulation, currency intervention – but central banks are knee-deep in the trenches as they battle to lower their exchange rates and boost their economies.
  • The Czech currency came under sustained upward pressure in the middle of January, as investors piled in on bets that faster inflation would spur the central bank to abandon a cap that has kept a lid on the koruna for the past three years.
  • Only a week into Trump taking office, it is too early to make concrete predictions about what the FX market can expect, but the acting chairman of the CFTC has outlined some of his priorities, which could provide clues.
  • Australian banks are increasing their commitment to electronification, spurred on by aggressive competition from non-bank market makers – particularly for spot FX business.
  • The Euromoney FX Survey 2017 is our 39th annual survey of liquidity consumption in the global FX markets.
  • On a day many expected would see the pound sink to new depths, the currency instead responded to news that the UK would be leaving the single market by posting its best performance since the referendum – but whether the day marked a turning point or a mere relief rally, nobody can be sure.
  • JPMorgan’s decision to adopt a newly launched trade analytics service for its market-leading currencies business highlights the need for independent validation of execution quality in foreign exchange, according to the service’s co-founders.
  • A challenging inflation outlook, sluggish economic activity and the steep slide in the value of the lira look set to force the Turkish central bank to oppose the wishes of its president and hike interest rates.
  • Corporate use of algorithmic FX trading appears to be bucking the trend of lower overall levels of corporate FX activity.
  • Volatile markets, political noise and a culture revamp will be the top themes in foreign exchange for 2017, predict currency experts. Disruptive fintech firms will continue to make headway in a market that is rapidly changing in light of rising pressure on traditional market makers such as banks and demands for greater transparency
  • Although the market for FX options has become more competitive, limitations around liquidity, costs and the availability of pricing data continue to deter many corporates.
  • The painstakingly gradual loosening of US monetary policy continued this week, with the second rate rise in the cycle coming one year after the first, but the Fed gave markets something to think about by indicating it expects to raise rates three times in 2017.
  • 2016 will be remembered as the year the people punished politicians at the polls, unleashing a torrent of volatility in financial markets, with currencies taking a huge hit. Here are the biggest currency stories of 2016.
  • Many banks are leaning heavily on their single-dealer platforms to improve the efficiency of their FX business, although there is no guarantee that this approach will be sustainable in the long term
  • Thomson Reuters has entered a partnership with BestX to provide its buy-side clients with execution cost analysis functionality. It goes beyond what is envisaged in recent regulatory guidance for transaction cost analysis, allowing fund managers to refine their trading activities to reduce costs rather than simply meet compliance requirements