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Who Are The Potential Buyers of Nex? There was a fair amount of chatter about the future of Icap (soon to become ‘Nex’) at the recent Profit & Loss Forex Network Chicago conference, with much of it centering around likely purchasers of the company once it sells its global wholesale broking and information business (IGBB) to Tullett Prebon. “The other broader question hanging around the firm as it transitions into Nex is whether [CEO Michael] Spencer is priming the new entity for a sale,” Profit & Loss noted in an article published prior to the conference last month. It seems that many of the attendees of Forex Network Chicago had, in their own minds at least, decided that the answer to this question was that the firm is indeed up for sale. The speculation then turned to who would be interested and able to buy the firm.
Have Buy Side Firms Been Asleep at the Wheel? In recent years the sell side has justifiably been criticised for its behaviour in the FX market. But should regulators and market participants be taking a closer look at how the buy side operates in this market? Galen Stops reports. The FX industry has been rocked by a number of scandals in recent years and in many cases the implications of these scandals is only now coming home to roost. Two of the largest custodian banks in the world, BNY Mellon and State Street, have agreed $714 million and $530 million settlements, respectively, related to allegations they systematically set disadvantageous rates for their customers in contrast to their claims to be achieving best execution for them.
The FX Consolidated Tape: A Perennial Chicken and Egg Problem At this point it is widely known in the FX market that there is an initiative underway, being spearheaded by FastMatch, to build a consolidated tape for FX, similar to the one that exists in equities. But given the differences ...
The Future of FCMs: Adapting to Survive The plight of Futures Commission Merchants (FCMs) in recent years has been well documented. But can they adapt to survive and where are there parallels with the changes taking place in FX prime services? The FCM business model has been ...
As RMB Internationalises, Questions Arise Around Settlement A turning point year for the Chinese currency, 2015 foretold a new era for the RMB. As the currency gains in prominence, China faces decisions around settlement mechanisms, which will be crucial to its acceptance as a truly international currency. Galen ...
NBIM Steps into the Last Look Debate In the latest issue of its Asset Manager Perspective, Norges Bank Investment Management investigates the role of last look in FX markets. The fund acknowledges that the practice “serves a legitimate need” of liquidity providers and can improve liquidity available ...
Under the Hood of the LCH.Clearnet, CLS Partnership LCH.Clearnet and CLS announced plans this summer to launch a service for clearing deliverable FX products. But how exactly will the new system work and is there really demand for this type of service? Galen Stops investigates. In August, ...
Mind The Gap

16:55 September 16th 2015 in Analysis, Industry

Mind The Gap

Is the continued technological evolution of the FX market opening up gaps in banks’ risk management capabilities? Galen Stops takes a look. The numerous benefits that technology has brought, and continues to bring, to the FX market have been well ...
Does Bitcoin Have a Future in Financial Services? With financial services firms currently tripping over each other to highlight the potential applications of blockchain technology, Galen Stops looks at what this means for Bitcoin’s chances of entering the financial mainstream. There are very few topics within the ...
FX NDF Client Clearing Begins on SEFs: More to Follow? The first centrally cleared FX NDF client trade took place on a Swap Execution Facility (SEF) last month, potentially paving the way for more clearing activity and more competition in this segment of the market.Despite no regulatory mandate to ...