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.
FastMatch has made its proprietary algorithmic and transaction cost analysis (TCA) services available to all its subscribers.
The firm has been offering algorithmic trading to asset managers via its AgencyFX product for the past 18 months to satisfy increasing demand from this customer segment for algorithmic execution products.
Now it will be offering it to both buy and sell side users of the platform. Clients using FastMatch algorithms will receive automated TCA reports upon completion of their orders showing the algorithmic execution performance versus arrival price, FastMatch midpoint and other benchmarks.
Edgewater Markets has hired Felipe Alanís Suárez as its head of electronic solutions, based in Mexico City.
In his new role Suárez will be responsible for managing the Edgewater’s recently launched platform, which includes a matching engine in Mexico City's KIO-5 data centre.
He will report to Robert Sanchez, managing director and head of Edgewater’s LatAm business. Suárez joins the firm from Mexican bank, Banorte, where he has worked for 17 years, most recently as deputy director, FX electronic markets.
The Australian Financial Markets Association (AFMA) has announced that it will transfer administration of the BBSW (bank bill swap rate) benchmark rate to ASX. It is the intention of both parties that ASX will administer BBSW from 1 January 2017.
AFMA says ASX was selected following a “highly competitive process” that Profit & Loss understands included Ice Benchmark and Thomson Reuters, which began in July 2016 with a public invitation for interested parties to register their interest as a potential alternate benchmark administrator for the rate setting.
The Depository Trust & Clearing Corporation (DTCC) says that its Global Trade Repository (GTR) has added trade repository services for Newfoundland and Labrador.
With this addition, DTCC says GTR now supports all Canadian provinces and territories.
In an effort to achieve improved risk analysis, all Canadian provinces and territories have adopted harmonised derivatives reporting regulations. These rules require reporting for OTC derivatives transactions, including rate, credit, equity, FX and commodity derivatives.
GTR is anticipated to begin support for public price dissemination in January 2017, across all Canadian provinces and territories, DTCC says.
The Malaysian Ringgit is approaching its lowest trading level against the US dollar since the Asian crisis in 1998 when the country was prompted to introduce capital controls.
In an attempt to stem the outflow of MYR, the country’s central bank, Bank Negara, last week issued a warning regarding offshore NDF trading – a move widely seen as a reintroduction of capital controls – by sending letters to compliance heads at onshore and offshore banks demanding they commit to ceasing offshore trade of MYR NDFs.
Data from CLS Group signals a small drop off in activity in FX markets in October 2016, however year-on-year the data is more positive.
CLS says that the average daily input volume submitted to it, combining the settlement and aggregation services, was 1,015,928 down 2.1% from 1,038,025 in September 2016.
The average daily input value submitted to CLS was $4.92 trillion down 1.4% from $4.99 trillion in September 2016.
Year-on-year was a more mixed picture, in October 2015 CLS reported input volume of 1,056,574, higher that last month, however the value submitted in October 2015 was lower at $4.64 trillion.
With new data showing that RMB trading grew 81.8% over the past three years, Galen Stops looks at the continued development of the currency and the growth of FX trading in the APAC region.
The growth of Chinese renminbi (RMB) trading in the global FX market has been well documented by a variety of sources, whether anecdotally by traders, logically by economists or quantifiably by trading venues and other data providers.
It was therefore no surprise when the latest Bank for International Settlements (BIS) triennial survey showed that the average daily turnover of RMB has grown from $120 billion in 2013 to $202 billion as of April 2016, an 81.8% increase.
The BIS semi-annual survey of OTC derivatives finds that while the interest rate segment continues to dominate outstanding derivatives balances, FX outstandingsd grew strongly driven by sterling and yen contracts.
The BIS says the gross market value of OTC derivatives – that is, the cost of replacing all outstanding contracts at current market prices – rose to $20.7 trillion at end-June 2016 from $14.5 trillion at end-2015.
The market value of foreign exchange derivatives involving the yen and pound sterling more than doubled in the first half of 2016 on the back of sharp moves in the respective currencies.
Sources familiar with the matter say that David Woolcock is joining the Market Practitioners Group (MPG) sub-committee of the BIS Working Group.
The MPG, under the stewardship of CLS’s David Puth, is helping to develop the Global Code of Conduct for FX markets. The work started in mid-2015 in response to the series of scandals that rocked FX markets and the completed Code is due for delivery in six months’ time.
Woolcock is chair of ACI – The Financial Markets Association’s Committee for Professionalism (CFP), the committee that originally created and manages ACI’s Model Code.