CLS was another market mechanism to receive a boost from the US election, with data from the settlement services provider showing the number of instructions submitted and the value settled both rising strongly.
CLS says the average daily input volume submitted, combining its settlement and aggregation services, was 1,167,833 up 15.0% from 1,015,928 in October 2016
The average daily input value submitted to CLS was $4.99 trillion up 1.4% from $4.92 trillion in October 2016.
The volume of instructions rose 21% year-on-year and the value settled was 13.2% higher than November 2015.
Bloomberg Tradebook has released a new cross-asset tool designed to enable firms to trade one security relative to a set benchmark.
In a release issued today, Bloomberg Tradebook claims that this Relative Benchmark Trading (RBT) algorithm will help traders using its PAIR (Pair) platform generate alpha, reduce the costs of trading and better manage risk.
It does this, the firm says, by enabling firms to leverage Bloomberg’s data to help them capture gains from the dynamic relative pricing of securities by tracking the performance of other instruments that drive the price of that stock.
Earthport, which provides a payment network for cross-border payments, says that it is expanding service with Bank of America Merrill Lynch (BAML).
The firm says that the service will add numerous new countries and currencies to the bank’s online and file based banking portal, CashPro, further expanding the bank’s international Automated Clearing House (ACH) payment capabilities.
As a result of this deal, BAML clients will be able to access cross currency payments in more than 60 countries and nearly 25 currencies, expanding upon the relationship between Earthport and BAML that was first announced in 2013.
Integral Development Corp has integrated Linedata's Order Management System (OMS) powered by Longview, with Integral’s InvestorFX.
“We are pleased to partner with Linedata, which delivers flexible and comprehensive asset management solutions to global institutional and alternative communities,” says Harpal Sandhu, CEO, Integral. “InvestorFX is the smartest trading platform available for investment managers today, and we are proud to offer another high-quality option to access it. All users of Linedata OMS are now able to benefit from a seamless integration with InvestorFX.”
The latest Bank for International Settlements Quarterly Report carries a paper, Downsized FX Markets: Causes and Implications, which suggests that amongst the many structural shifts taking place in FX markets, a move towards relationship trading is underway.
The authors suggest that this shift, along with the changes in the composition of market participants and their trading patterns may have “significant implications for market functioning and FX market liquidity resilience going forward”.
The paper notes that trading with non-financial counterparties has fallen 20%, a reflection of reduced global trade flows. It argues, however, that conventional macroeconomic drivers alone cannot explain the evolution of FX volumes or their composition across counterparties or instruments.
Mischa Irsch has joined State Street Global Markets in Boston as an FX sales trader.
Citi’s fourth annual ‘E for Education’ charity campaign has raised $4 million for education-focused charities.
The 10-week global charity campaign stretched across Citi’s offices in the United States, Europe, Middle East, Africa, Asia and Latin America. All proceeds will be evenly divided amongst seven charities.
As was the case in previous years, Citi’s FX business donated $1 for every $1 million of FX transacted electronically.
The campaign featured a series of activities involving local schools including classroom teach-ins by staff, student CV clinics and trading floor visits.
New regulations imposed on banks since the financial crisis could be contributing to “flash crashes”, according to Christopher Giancarlo, a Commissioner at the Commodity Futures Trading Commission (CFTC).
Speaking at ISDA’s Trade Execution Legal Forum, Giancarlo said that when the British pound suddenly dropped 6% against the US dollar in October, this flash crash was exacerbated by a lack of market liquidity.
He continued: “In fact, there have been at least 12 major flash crashes since the passage of the Dodd-Frank Act. The growing incidence of these events shakes confidence in world financial markets.
Jason Vitale has resigned from Deutsche Bank in London, ending a 12-year career at the institution.
Vitale, who was global head of FX prime brokerage and co-head of listed derivatives and markets clearing EMEA, is believed to be leaving for a new position in the industry.
He joined Deutsche Bank from State Street in June 2004 as client service and product development manager in its FX prime brokerage business, before being appointed to the European PB sales team. His role was expended in 2008 to include fixed income prime brokerage and in 2010 he was appointed global head of FXPB. He took on his current role in June 2012.
In a new whitepaper issued today, Thomson Reuters claims that regulators are requiring firms that contribute to financial benchmarks to face increased scrutiny of their record-keeping and information governance policies.
The paper, “Information Governance Reform for Benchmark Submitters”, focuses on the global momentum for regulatory change following the Libor and FX benchmark scandals and examines the challenges submitters now face.
It notes that, because most benchmarks are global and therefore cross jurisdictions, individual benchmarks may have multiple sources of regional regulations. As a result, firms are now required to ensure compliance with an expanded scope of guidelines and relevant jurisdictions.