Skip to main content
RSS Feed

Latest FX News

JP Morgan Hires Herschmann Debra Herschmann has joined JP Morgan as head of corporate and investment bank user experience. She joins from Goldman Sachs, where she established and led the global user experience design practice responsible for delivering commercial and highly usable client-facing, front office, and enterprise products. Prior to that, Herschmann was at Lehman Brothers where she was responsible for UX delivery of LehmanLive and Point. At JP Morgan, Herschmann will be responsible for ensuring clients get a consistent experience on the bank’s platforms across asset classes, and as markets change or open up.
JP Morgan Names Markets Execution Management JP Morgan has created a markets execution team, which will focus on providing clients with electronic distribution of macro (including futures and options and Neovest) markets products across multi-channels. The new team will be jointly led by Richard James, who has moved from his role as head of currencies and emerging markets execution services, and Peter Ward, who was previously head of futures and options execution services. Both men will report to David Hudson, JP Morgan's head of markets execution.
Second SEC Departure as Luparello Exits Just weeks after Securities & Exchange Commission (SEC) head Mary Jo White exited the US regulator, the SEC is set to lose a second senior figure. Stephen Luparello, director of the Division of Trading and Markets, will leave the agency before the end of this year. He was named director of the office in February 2014. The SEC says Luparello played a key role in enhancing the transparency and strengthening the integrity of US markets, including the operation of trading platforms, clearing agencies, and broker-dealers.
Capitalab Launches Compression for FX Options Capitalab, an entity within BGC Partners, has launched a multilateral portfolio compression service for FX options, as well as for interest rate caps and floors. Since June 2016, five FX options compression runs have been executed, in USD/JPY and EUR/USD, with the participation of respectively five and seven FX options dealers. In the last three interest rate options compression runs organised by Capitalab, participants have also included caps and floors, together with swaptions. Caps and floors – options on Libor and Euribor forward rates - are known to be capital intensive, because of their large notionals.
CFTC Collects $1.3 Billion from Enforcement Actions The Commodity Futures Trading Commission (CFTC) says in financial year 2016 it filed 68 enforcement actions, which addressed a sweeping range of misconduct and market harm, and obtained orders totaling approximately $1.29 billion in restitution, disgorgement, and penalties. Along with new enforcement actions, the CFTC says it aggressively pursued litigation in over 100 cases, including significant and complex cases charging manipulation, spoofing, and unlawful use of customer funds, and won liability verdicts in both jury and bench trials in US District Courts.
CFTC Extends Relief on Reporting Rules The Commodity Futures Trading Commission (CFTC) has issued a time-limited no-action letter that extends relief provided to certain CFTC-registered swap dealers (SD) and major swap participants (MSP) in CFTC Letter No. 15-61. The latest no-action letter states that the commission’s Division of Market Oversight will not recommend the CFTC take an enforcement action against a non-US SD or a non-US MSP established in Australia, Canada, the European Union, Japan or Switzerland, that is not part of an affiliated group in which the ultimate parent entity is a US SD, US MSP, US bank, US financial holding company, or US bank holding company, for failure to comply with the swap data reporting requirements of Part 45 and Part 46 of the CFTC’s regulations (SDR Reporting Rules), with respect to its swaps with non-US counterparties that are not guaranteed affiliates, or conduit affiliates, of a US person.
Connolly Joins Icap Stuart Connolly has joined Icap as head of client product development for its Post Trade Risk and Information (PTRI) division. He joined Monday (21 November) in what is a newly created role, will report to Jenny Knott, CEO for PTRI and will be based in London. Connolly will work with each of PTRI's businesses to leverage data and develop client data services through the identification of real life client use cases. Icap says he will provide insights and partner with the relevant data analytics teams in PTRI to build and launch a variety of complementary data services interoperable with PTRI's businesses.
ICBC Adopts Thomson Reuters Solution Industrial and Commercial Bank of China’s (ICBC) Singapore branch has adopted Thomson Reuters FX e-commerce solution Electronic Trading to strengthen its presence in the foreign exchange market. Thomson Reuters says ICBC is the first Chinese bank to adopt this solution, which provides efficient market making capabilities and allows ICBC to price CNH and other G10 currencies across Asia with various branches, interbank clients and corporate clients. “As China's largest bank and the official CNH clearing bank of Singapore, ICBC Singapore is committed to offering a full range of integrated financial services in the CNH and other key currencies to our clients," says Zhang Weiwu, general manager of ICBC Singapore.
Brown to Run GTX SEF GTX, the institutional arm of Gain Capital, says it has appointed Ed Brown as CEO of GTX SEF, its swap execution facility. Brown joins with over 25 years’ experience in the financial services industry, most recently he headed strategic initiatives at EBS BrokerTec, having also served in a variety of senior roles in Icap’s electronic trading division. He left Icap in August 2015. At Icap, Brown focused on regulatory matters related to OTC derivatives with a particular emphasis on the Dodd Frank Act and served as a board member of the Wholesale Market Brokers’ Association Americas.
Liquidity Conditions “Here to Stay” – Survey A new survey of hedge funds finds that almost half of respondents believe that decreased market liquidity “is a secular shift that is here to stay”. The study was conducted by State Street in partnership with the Alternative Investment Management Association (AIMA). It finds that regulations stemming from the 2008 financial crisis, coupled with historically low interest rates and slow rates of growth in the global economy, have constrained the ability of many banks to perform their traditional roles as market makers, which in turn has impacted broader market liquidity conditions.