Skip to main content
RSS Feed

Articles tagged by Brexit

Post-Brexit Uncertainty Dominates Markets Continued market uncertainty following the UK’s vote to leave the European Union vote has led to a flight to safe haven currencies and raised questions about the future of financial regulation, although corporates appear to be coping well with ...
Scandis Under Pressure from Brexit, but Risk Appetite Coming Back Risk aversion generated by the Brexit vote has seen Scandinavian currencies more than others coming under pressure along with sterling. In particular, the Norwegian krone and Swedish krona have been hit by the downward trend. However, market analysts contacted by ...
BoE Expects Monetary Policy Easing in Summer: Carney The Bank of England (BoE) is expecting that some “monetary policy easing will likely be required over the summer” as the “economic outlook has deteriorated” on the back of the UK voting to leave the EU, the BoE governor Mark ...
CTA Performance Solid Following UK Referendum Result Societe Generale Prime Services’ CTA Indices show positive performance for commodity trading advisors in the two full days of trading after the UK referendum results – Friday 24 June and Monday 27 June.  In the immediate aftermath of the result on Friday, when ...
Brexit Vote Boosts FXSpotStream Volumes to Record High FXSpotStream (FSS) is the latest multibank FX platform to report record trading volumes following the spike in activity caused by the UK’s referendum decision to exit the European Union. In June, FSS recorded a new all-time service record for ...
Brexit to Have Negligible Impact on ISDA Agreements Britain’s decision to leave the European Union (EU) will have little or no impact on ISDA agreements, legal experts said on a webinar last week. Speaking about the impact of the Brexit decision on the legal framework for derivatives ...
Brexit: Winners and Losers With the dust having settled somewhat following the UK’s historical referendum decision to leave the European Union, there are some clear winners and – unfortunately – some losers emerging in the aftermath. It should be noted that this list is by ...
Dissecting the Impact of a Brexit The UK’s referendum decision to leave the European Union has led to wild swings in the valuation of sterling, and caused significantly increased volatility in many other currencies. But while analysts, strategists and economists will spend the next few ...
BoE Warns of Market Fragility After Brexit Vote A further deterioration in investor appetite for UK assets, together with a potential rise in the number of vulnerable households and increased fragility in financial markets are among the main risks that the Financial Policy Committee of the Bank of ...
…As UK Small Businesses Exposed to Currency Risks Approximately two thirds of small businesses in the UK are exposed to currency risks following the Brexit vote, according to East & Partners, a banking market research and analysis firm. The firms’ research shows that in the first half of 2016 all “...
Icap CEO “Cautiously Optimistic” Despite Macro Uncertainty Michael Spencer, the group CEO of Icap, claimed to be “cautiously optimistic” about his firms’ future prospects despite heightened uncertainty surrounding the macroeconomic outlook for the UK and the global economy. In a trading statement for the period April 1 2016 to ...
Brexit Response Highlights Changing Nature of FX Liquidity The FX industry proved resilient in the wake of the volatility caused by the Brexit vote while also illustrating the changing nature of liquidity within the market, according to speakers on a Profit & Loss webinar last week. “One of the ...
BoE Surprisingly Maintains Rates at 0.5%, Expects Stimulus Measures in August In a surprise move the Bank of England’s Monetary Policy Committee overwhelmingly voted to maintain bank rates at 0.5% Thursday, although it said it expects to take some stimulus measures in August. At its meeting ending July 13, the MPC voted ...
CLS Volumes Surge in June The average daily input value submitted to CLS was $5.19 trillion in June, up 12.6% from the previous month and up 3% year-on-year. Average daily input volume submitted to CLS, combining the settlement and aggregation services, was 1.16 million in June. This represents a 20% ...
Old Lady “Not a Nurse to Markets”, Says BoE Economist The Bank of England (BoE) will not ease interest rates just to appease the expectations of the market or to reassure consumers and businesses following the Brexit vote, warned Martin Wheale, an external member of the Monetary Policy Committee (MPC) ...
FlexTrade Promises Brexit Certainty with New Frankfurt Office FlexTrade Systems opened an office in Frankfurt, Germany, in order to offer local sales and service to the company’s growing German-speaking client base. The new office will be in the same building as the Frankfurt stock exchange.  “The initial ...
BoE Announces Brexit-Induced Stimulus Package The Bank of England’s (BoE) Monetary Policy Committee (MPC) has voted unanimously in favour of a 25 basis point cut in Bank Rate to 0.25%. It also voted for a new Term Funding Scheme to reinforce the pass-through cut in Bank ...
Analysts Predict Further Rate Cuts After BoE Stimulus Expect further rate cuts from the Bank of England (BoE) as Governor Mark Carney shows that he is willing to let sterling continue depreciating, say analysts. “The package of stimulus announced by the Bank of England has prompted a significant ...
UK Financial Regulation Faces Post-Brexit Equivalence Dilemma Financial regulations, particularly for benchmarks, are likely to be materially aligned in the UK and rest of Europe by the time Brexit is completed, however obtaining “equivalence” status for the UK might not be quite as straightforward, a number of ...
CLS Volumes Ease in July The average daily input volume of instructions submitted to CLS, combining the settlement and aggregation services, fell 9.7% month on month in July, standing at 1,050,046. However, year on year volumes were less changed, decreasing by just over 1.7%. Meanwhile, the average daily ...
All Quiet on the FX Front – But for How Long? The UK referendum on European Union membership brought with it a wave of volatility and uncertainty, however FX markets have rather settled back since the initial shock. Implied volatility levels are at almost two year lows – lower in fact that ...
No Surprises: BoE Holds Rates Steady The Bank of England’s (BoE) Monetary Policy Committee (MPC) has voted unanimously to maintain the measures it introduced in its Brexit-induced stimulus package announced in August. This means that it will hold the Bank Rate at 0.25% and continue with the programme of sterling non-financial investment-grade corporate bond purchases totalling up to £10 billion, financed by the issuance of central bank reserves. The MPC also voted unanimously to continue with the programme of £60 billion of UK government bond purchases to take the total stock of these purchases to £435 billion, financed by the issuance of central bank reserves.
CLS Data Reflects Broader FX Slowdown Data from CLS shows that its average daily input volumes for August were down 15.9% month-on-month, which is consistent with a broader decline in trading activity across the multibank FX platforms last month. The average daily input volume submitted to CLS, combining the settlement and aggregation services, was 883,368 in August, down from 1,050,046 the previous month and the 1,170,313 recorded in August 2015. However, average daily input values were flat – down just 0.2% month-on-month to $4.68 trillion from $4.69 trillion in July 2016.
Survey: SMEs Struggle with FX Volatility Managing FX volatility is the most common problem facing small and medium enterprises (SMEs) when making international payments, according to a new survey from Afex. Of the more than 500 SME respondents to the survey, 43% cited managing FX volatility as the biggest challenge to making international payments, which Afex claims highlights the role that the range of hedging products has in helping firms to manage their FX exposures. The next biggest challenge, according to the survey results, was the cost of making payments and ensuring that payments are made correctly, which 26% and 18%, respectively, cited in their responses.
UK SMEs Unprepared for Impact of Brexit on FX Costs UK small- and medium-sized businesses (SMEs) remain exposed and unprepared for the economic impact of the Brexit vote on their FX costs, according to a survey by EarthportFX, a cross border payment network. Despite the fact that 77% of survey respondents acknowledged the need to change their approach towards foreign exchange hedging in the face of highly volatile currency markets and the depreciation of the pound following the UK's decision in June to leave the EU, 80% admit they have made no changes to their hedging strategies.