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.
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.
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 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 ...
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 ...
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
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, ...
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 ...
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 ...
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 ...