AFME LIQUIDITY CONFERENCE FX MARKET STRUCTURE
|
|
- Angelina Carr
- 8 years ago
- Views:
Transcription
1 AFME LIQUIDITY CONFERENCE FX MARKET STRUCTURE 25 FEBRUARY 2015 FINANCIAL SERVICES
2 CONFIDENTIALITY Our clients industries are extremely competitive. The confidentiality of companies plans and data is obviously critical. Oliver Wyman will protect the confidentiality of all such client information. Similarly, management consulting is a competitive business. We view our approaches and insights as proprietary and therefore look to our clients to protect Oliver Wyman s interests in our proposals, presentations, methodologies and analytical techniques. Under no circumstances should this material be shared with any third party without the written consent of Oliver Wyman. Copyright Oliver Wyman
3 Overview The FX market has evolved into a highly sophisticated ecosystem Rapid volume growth and electronification Specialized roles and a wide range of actors Many different ways to access pricing and execution However a number of pressure points are emerging Economic pressures Focus on market conduct Focus on market structure This raises questions and challenges for all FX market participants Strategic questions over where to compete in the value chain, and where to share costs Questions over where to innovate new execution models, new collaborations A need for new policies and internationally coordinated frameworks to govern conduct A need for the industry to proactively shape the next phase of market structure change 2
4 FX trading volumes underwent a step change in the mid-2000s as the market re-ordered around electronic platforms and infrastructure upgrades Overall electronic vs. voice executed turnover $ BN Phase I Gradual adoption Phase II Rise of Multi Dealer Platforms and CLS Phase III Rapid electronification Phase IV E trading ecosystem 5, % 1,182 ~95% 1,527 ~90% 1,239 ~85% 1,934 ~35% ~65% 3,324 ~45% ~55% 3,971 ~60% ~40% ~65% ~35% EBS launched (1992) FX Connect launched Autobahn launched as execution tool (1996) Launch of Currenex (1999), FXall (2001), Hotspot (2002) CLS starts operations (2002) SDP development by banks; BARX launched (2001) Dealer SDP upgrades (additional functionality, products) Tier-2 bank SDP roll-outs Increasing use of algorithms and automated trading 1. Total FX turnover for Spot, Forwards and FX swaps contracts for 1992 Source: BIS, FRBNY FXC, BoE FXJSC, Oliver Wyman estimates 3
5 Volume growth over recent years has been driven by trades between financial participants, with roughly two trades per end user transaction BIS stated global FX daily turnover $ BN 6,000 5,000 4,000 3,000 2,000 1, ,934 53% 33% 14% ,324 42% 40% 18% 2007 Between reporting dealers 3,971 39% 48% 13% 2010 Other financial participants to reporting dealers Non-financial participants to reporting dealers 5,345 39% 53% 9% 2013 Oliver Wyman estimated break down of volumes by counterparty type 2013 Participant type End users with indirect access Share of turnover ~5% Large corporates 10 15% Buy side FX hedgers 10 15% Central banks ~1% FX traders ~10% Banks ~55 60% End user flow 1 $ TN 30 32% Financial flow $3.9 TN 68 70% 1. Includes Oliver Wyman estimate of end-user flow to BIS non-reporting dealers and specialist distributors which is not included in BIS survey figures 2. Total merchandise trade, exports, US dollar at current prices Source: BIS, WTO 4
6 Voice SDP Voice SDP The market structure that has evolved to support end users is complex, with a number of key developments over recent years Six key trends in recent FX market structure evolution 1 Shift in mix of client execution flow towards MDPs FX traders and liquidity providers 1 End users 2 Rise of non bank risk takers and algorithmic trading 3 Growth in specialist providers Specialist distributors MDPs Other dealers 4 Pressure on non tier 1 dealers and banks 5 High levels of internalisation in core businesses Prime Broking Tier 1 dealers Electronic platforms 6 Lower volumes on interdealer platforms Voice Inter dealer brokers Price taker relationship Varying price maker/taker relationship 5
7 1. Client execution flow mix Multi-dealer platforms have grown 3 4 times faster than other channels Client volume executed through voice, single and multi-dealer platforms 1 % of ADV 100% Turnover CAGR ( ) Voice share down 16% Share has declined as flow products migrate to e- channels Still dominant in more complex/less liquid products 80% 60% Voice 6% Single-dealer platforms (SDP) flat share since 2008 Have retained share overall as banks continue to invest in functionality Growing competition between SDP providers top 5 share 62% in 2013 vs. 85% in % SDP 12% Multi-dealer platforms (MDP) share up 16% since 2008 Growing competition between MDP providers top 5 share 77% in 2013 vs. 91% in % 0% MDP FX trader focus MDP end user focus 31% 48% FX trader focused 9% increase in share from 2008 Examples: FXAll, Currenex, Hotspot Offer low latency and colocation FX end user focused 7% increase in share from 2008 Examples: FX Connect, 360T Primarily target end users 1. Based on BoE FXJSC sample, and excluding those volumes executed via interdealer broking platforms Source: BoE FXJSC, Euromoney, Oliver Wyman estimates applying Euromoney market shares to BoE FXJSC data 6
8 2. Non-bank risk takers There are a range of different types of non-bank liquidity provider Evolution of proprietary trading in FX Overview of non-bank liquidity providers (NBLP) 1. Rise of the non-bank liquidity provider Porting of technology and risk management techniques from the equities markets to FX Initially focused on entry into e-idb channels to facilitate risk recycle from the large dealers 2. Beginning of High Frequency Trading Rapid decrease in latency on platforms coupled with high messaging capacity Migration of futures focused NBLPs to FX Rise of taking strategies and rebalance from pure market making 3. FX as an asset class Platforms emerge dedicated to customer segments Entrance by hedge funds and NBLPs focused on systematic strategies (rather than latency) Access now democratic as platforms open to non-dealer channels NBLPs now have ~8 13% share of spot volumes Source: Oliver Wyman estimates Strategy Market maker Speculative strategies Aggressive takers Systematic strategies Description Automated market making in a small number of highly liquid pairs Low latency critical for risk management Opportunistic trading algorithms geared towards taking advantage of market conditions as they arise Focus on low latency price arbitrage opportunities (on individual platforms or across platforms) Makers and takers characterised by less latency sensitivities Significantly lower messaging volume and longer holding periods Est. % of NBLP volume (spot) ~30 35% ~30 35% ~25 30% ~5 10% 7
9 3. Specialist distributors Specialist distributor transaction volume has doubled since 2007 to ~$0.2 TN Estimated specialist distributor volume transacted ADV, $ TN Example specialist distributor business models Model Proposition/Offering Description CAGR ~10 15% ~0.2 Traditional MTO 1 Transactional FX products Travel cards White-label offering Retail FX trading platform Main focus on retail, private, business segments More sophisticated products, competitive pricing Also provide white-label solution to distribution partners to expand reach ~0.1 ~80% ~80% Corporate P2P players Spot FX White-label offering Spot FX E-commerce services Peer-to-peer FX offering, also for business users Transparent and straightforward pricing (typically fee-based) Disruptive model, infringing bank/mto space ~20% ~20% Retail M-payment providers/teleco m partnerships Digital wallet Mobile payments platform Partnerships with banks (e.g. La Caixa) and card networks (e.g. Visa) Money Transfer Organisation Source: BIS, Oliver Wyman proprietary data and analysis 8
10 Other dealers The market share of the top-10 dealers has remained relatively stable post-crisis, following a period of consolidation over Market share of client turnover across all FX products by dealer ranking % 37% 10% 17% 36% 26% 24% 23% 12% 17% 19% 19% 44% 13% 44% 13% 45% 15% 13% 11% 12% 12% 13% 12% 12% 12% 13% 23% 49% 11% 22% 55% 8% 8% 8% 20% 18% 18% 61% 61% 62% 10% 23% 25% 24% 22% 55% 11% 52% 9% 55% 9% 57% Turnover 1 CAGR ( ) Others 6% Next dealers Next 6 10 dealers Top 1 5 dealers 16% 19% 21% Perspectives The larger dealers share of client volumes increased substantially over , movements have been more modest in recent years Business models for mid-sized and smaller dealers have remain more pressured Large fixed cost base and flat revenues pressuring economics Harder to extract value from market making Pressure from specialists on franchise flows Overall 17% 1. Based on BIS reporting dealer volumes transacted with non-financial participants and other financial participants Source: Euromoney, BIS, Oliver Wyman estimates based on using Euromoney market shares and BIS global turnover data 9
11 5. Internalisation Internalisation levels differ widely across instruments within FX Product Client flow matching 1 (estimated based on BIS data) Oliver Wyman trend view Comments Spot ~70% More efficient matching engines have increased dealer ability to match client flows Forwards ~65% Concentration of market share has increased naturally offsetting clients flows to dealers Lower matching due to tenor, start date differences and prevalence of bespoke contracts FX swaps ~20% Client flow needs to be actively risk managed through inter-dealer hedging Additional inter-dealer flow due to overall liquidity/risk management needs of banks Options Not meaningful given inter dealer hedging is primarily through delta 1 products with much lower inter dealer flow in higher order greeks Looking only as BIS option volume data indicates low proportion of inter-dealer hedging Does not capture delta hedging flows Typically risk is warehoused due to complex, bespoke option structures 1. Defined as 1 (Inter-dealer hedging transaction volume/total client transaction volume) Source: Oliver Wyman estimates based on BIS FX Triennial Survey
12 6. Interdealer platforms The market share of traditional electronic interdealer broker venues has declined as new execution platforms emerged Share of EBS and Reuters in overall spot FX turnover % of global ADV Share¹ 59% 69% 72% 51% 55% 53% 38% 36% 33% Aggregate IDB volumes have declined on an absolute basis 30% 25% 20% 15% 25% 26% 20% 20% 19% 17% 14% 13% 13% The share of Reuters and EBS of reported BIS spot trades has halved since % 5% 0% Q Emergence and growth of non bank liquidity providers (e.g. HFTs) along with MDP growth has provided impetus to trade smaller sizes across venues Spot ADV $ BN Reuters EBS CAGR Reuters % New venues with latency floors have emerged for risk management EBS % 1. Share of spot traded between BIS reporting dealers, Source: Celent, BIS, Company websites 11
13 Looking ahead we expect continued change as the market adjusts to competitive and regulatory pressures Theme Key elements 1 Focus on conduct Defining acceptable behaviour for sales and traders Determining appropriate pricing levels for different channels/clients 2 3 Market regulation Implementation of mandated clearing, margining, SEF/OTF execution and trade reporting for various (non-spot) products New funding and operational costs Economic pressures Bank-wide pressures on cost, balance sheet and risk capacity Continued competition from non-bank distributors, market makers and technology providers 4 Focus on market structure Focus on concentration, market stability and tail risks Concerns around benchmarks and reference prices Debate around the future role of agency models 12
14 This raises questions and challenges for all FX market participants Strategic questions over where to compete in the value chain, and where to share costs Questions over where to innovate new execution models, new collaborations A need for new policies and internationally coordinated frameworks to govern conduct A need for the industry to proactively shape the next phase of market structure change 13
15 QUALIFICATIONS, ASSUMPTIONS AND LIMITING CONDITIONS This report is for the exclusive use of the Oliver Wyman client named herein. This report is not intended for general circulation or publication, nor is it to be reproduced, quoted or distributed for any purpose without the prior written permission of Oliver Wyman. There are no third party beneficiaries with respect to this report, and Oliver Wyman does not accept any liability to any third party. Information furnished by others, upon which all or portions of this report are based, is believed to be reliable but has not been independently verified, unless otherwise expressly indicated. Public information and industry and statistical data are from sources we deem to be reliable; however, we make no representation as to the accuracy or completeness of such information. The findings contained in this report may contain predictions based on current data and historical trends. Any such predictions are subject to inherent risks and uncertainties. Oliver Wyman accepts no responsibility for actual results or future events. The opinions expressed in this report are valid only for the purpose stated herein and as of the date of this report. No obligation is assumed to revise this report to reflect changes, events or conditions, which occur subsequent to the date hereof. All decisions in connection with the implementation or use of advice or recommendations contained in this report are the sole responsibility of the client. This report does not represent investment advice nor does it provide an opinion regarding the fairness of any transaction to any and all parties.
How To Understand The Evolution Of Foreign Exchange Trading
Electronic Trading and the Australian Foreign Exchange Market Alexandra Heath and James Whitelaw* The introduction of electronic broking to the foreign exchange market in the early 199s signalled the start
More informationThe Modern Foreign Exchange Market
fxpa www.fxpa.org Foreign Exchange Professionals Association The Modern Foreign Exchange Market Key Concepts Foreign exchange (FX) is a global market in which any two currencies can be traded against each
More informationForeign Exchange Contact Group The future of the e-forex. Macalli Louis. Frankfurt, 10th June 2009
Foreign Exchange Contact Group The future of the e-forex Macalli Louis Frankfurt, 10th June 2009 The future of the e-forex From the phone-based FX to the e-forex : main features and short term issues.
More informationNew York Workers Compensation Trends
New York Workers Compensation Trends June 2015 Oliver Wyman QUALIFICATIONS, ASSUMPTIONS AND LIMITING CONDITIONS This report is for the exclusive use of the Oliver Wyman client named herein. This report
More information2016 Triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Market Activity Frequently asked questions and answers
20 January 2016 2016 Triennial Central Bank Survey of Foreign Exchange and OTC Derivatives Market Activity Frequently asked questions and answers Table of Contents A. Risk categories... 3 1. Foreign exchange
More informationTrends in e-fx Options Market August 2007
Trends in e-fx Options Market August 2007 Lars Hakanson Stephane Malrait Table of Contents e-options Market Picture The e-trading Ratio vs. Voice The e-trading Ratio vs. Voice per Geographical Zone e-options
More informationCONSULTATION DOCUMENT
EUROPEAN COMMISSION Directorate General Internal Market and Services FINANCIAL MARKETS Securities Markets Brussels, 10 April 2014 Disclaimer CONSULTATION DOCUMENT FX FINANCIAL INSTRUMENTS This document
More informationHigh Frequency Trading in FX
High Frequency Trading in FX While regulatory scrutiny continues to Figure 2: Electronic Trading Adoption in FX build in the U.S. equity market driven by populist-led political pressures, High Frequency
More informationHIGH VELOCITY VOLUME COMPLEXITY. Addressing the challenges of Big Data in FX
HIGH VELOCITY VOLUME COMPLEXITY Addressing the challenges of Big Data in FX The big data challenges that face traders in foreign exchange are the sheer volume of trading, amount of data and number of execution
More informationHow To Understand The Trading Environment In Russia
ACI Russia Global Trends in FX ecommerce Ben Ernest-Jones Solution Architect, Capital Markets Progress Software 17 Oct 2012 Progress Apama Background Progress Software (NASDAQ: PRGS), $500M+ Revenue Apama
More informationExecution methods in foreign exchange markets 1
Paola Gallardo Alexandra Heath paola.gallardo@bis.org heatha@bis.org Execution methods in foreign exchange markets 1 Over the past decade or so, the spread of electronic trading has brought about significant
More informationFX Trading: A Changing Landscape FX Trading and Technology Trends in 2011
FX Trading: A Changing Landscape FX Trading and Technology Trends in 2011 OVERVIEW Rules of swap trading regulations in the Dodd-Frank Act are expected to be finalized in 2011. As the initial deadline
More informationOMG Global Conference April 23/24 2007. Electronic market making efficient and robusts operations. Godfried De Vidts Director of European Affairs
OMG Global Conference April 23/24 2007 Electronic market making efficient and robusts operations Godfried De Vidts Director of European Affairs Highlights ICAP has created a powerful combination: the world
More informationSeptember 2015. A Message to Morgan Stanley s Institutional Fixed Income Clients. Re: Fixed Income Trading Practices and Information
September 2015 A Message to Morgan Stanley s Institutional Fixed Income Clients Re: Fixed Income Trading Practices and Information This letter is part of our ongoing effort to provide transparency to our
More informationTen years after the arrival of electronic FX, Single-dealer platforms: staying ahead in the FX game FEATURE. Focus on client service
Single-dealer platforms: staying ahead in the FX game numerous factors driving clients to single-dealer FX platforms. Firstly there is the speed and reliability of execution which are more critical factors
More informationMiFID/MiFIR: The OTF and SI regime for OTC derivatives
MiFID/MiFIR: The OTF and SI regime for OTC derivatives The International Swaps and Derivatives Association (ISDA) would like to take this opportunity to set out its views on the elements of European Commission
More informationTHE WORLD MARKETS COMPANY PLC DESCRIPTION OF SERVICES AND CONFLICTS OF INTEREST DISCLOSURE STATEMENT MARCH 1, 2015
THE WORLD MARKETS COMPANY PLC DESCRIPTION OF SERVICES AND CONFLICTS OF INTEREST DISCLOSURE STATEMENT MARCH 1, 2015 The World Markets Company plc (the World Markets Company ) provides a global foreign exchange
More informationFX Trading: A Changing Landscape
FX Trading: A Changing Landscape FX Trading and Technology Trends in 2011 1 This report is based on an online survey conducted by StreamBase Systems in 2011. Overview Rules of swap trading regulations
More informationInternational Finance Prof. A. K. Misra Department of Management Indian Institute of Technology, Kharagpur
International Finance Prof. A. K. Misra Department of Management Indian Institute of Technology, Kharagpur Lecture - 7 Features of Foreign Exchange Market Good morning, today we will discuss features of
More informationDevelopment of the Client-Focused, Capital-Efficient Business Model
Development of the Client-Focused, Capital-Efficient Business Model David Mathers, Chief Operating Officer, Investment Bank at the Goldman Sachs European Financials Conference, Madrid, June 10, 2010 Cautionary
More informationRetail FX Margin Trading. Hjalmar Schröder / Reto Stadelmann
Retail FX Margin Trading Hjalmar Schröder / Reto Stadelmann August 2007 Agenda for today 1 What is Retail FX Margin Trading? 2 Size and Growth of Retail FX 3 Views on trends in Retail FX and their Implications
More informationThe Impacts of Electronic Trading on the Front Office
The Impacts of Electronic Trading on the Front Office Mark Dearlove April 2007 Outline Fears vs. Reality US Treasury Markets the impact of electronic execution on volume Foreign Exchange building a franchise
More informationFrom desktop to API. Getting the comfort levels to trade the more. - meeting new demand for FX Option platforms FEATURE
From desktop to API - meeting new demand for FX Option platforms Getting the comfort levels to trade the more complex FX products electronically has taken longer than expected but coupled with the recent
More informationJanuary 2016. A Message to Morgan Stanley s Institutional Commodities Clients. Re: Commodity Transaction Practices and Information
January 2016 A Message to Morgan Stanley s Institutional Commodities Clients Re: Commodity Transaction Practices and Information This letter is part of our ongoing effort to provide transparency to our
More informationLeveraging IT to Extend Excellence in the Forex Marketplace
Cognizant 20/20 Insights Leveraging IT to Extend Excellence in the Forex Marketplace Executive Summary As the foreign exchange (FX) market prepares for the next wave of growth, technology has emerged as
More informationTurnover of the foreign exchange and derivatives market in Hong Kong
Turnover of the foreign exchange and derivatives market in Hong Kong by the Banking Policy Department Hong Kong advanced one place to rank sixth in the global foreign exchange market and seventh when taking
More informationTechnology Implications and Costs of Dodd-Frank on Financial Markets. Larry Tabb Founder & CEO TABB Group
Technology Implications and Costs of Dodd-Frank on Financial Markets Larry Tabb Founder & CEO TABB Group CFTC TAC Washington DC March 1, 2011 Contents Workflows High Level Existing High Level Proposed
More informationThe Global Foreign Exchange Market: Growth and Transformation
The Global Foreign Exchange Market: Growth and Transformation William Barker, Financial Markets Department The foreign exchange market is in a period of remarkable transformation that is changing who is
More informationGlobal Corporate Risk Management
Global Corporate Risk Management Survey July 2012 Contents Barclays/ACT Corporate Risk Management Survey 3 Interest rates pre-hedging 21 Survey findings Hedge accounting 22 Risk management objectives and
More informationE-Trading: The Future of Forex Options
From desktop to API - meeting new demand for FX Option platforms By Frances Maguire With all other instruments traded electronically and with new technology available for trading FX options, interest is
More informationIsolating the real merits of fully outsourced hosting and FX connectivity services
Isolating the real merits of fully outsourced hosting and FX connectivity services Opportunities in FX trading are enormous, but the risks are also considerable. In the current low volatility environment,
More informationFX Trading: The Next Generation FX Trading and Technology Trends in 2010
FX Trading: The Next Generation FX Trading and Technology Trends in 2010 Emily Fraser Voigt, Freelance Journalist Table of Contents 3 FX Trading and Technology Trends in 2010 Survey 5 Broker Systems 7
More informationFX Trading and Technology Trends 2012
FX Trading and Technology Trends 2012 FX algorithms for trade execution are on the rise and here to stay. With the rapid growth of electronic trading and proliferation of trading platforms, multi-bank
More informationIntroducing Best Practices to Aggregation an EBS Consultation
Introducing Best Practices to Aggregation an EBS Consultation Gil Mandelzis, CEO June 2013 Copyright 2013 EBS Service Company Limited. All rights reserved. No part of this document may be reproduced or
More informationMarket Analysis The Nature and Scale of OTC Equity Trading in Europe April 2011
Association for Financial Markets in Europe The Nature and Scale of Equity Trading in Europe April 2011 Executive Summary It is often reported that the proportion of European equities trading that is over-the-counter
More informationFX & MIFID ECB FX Contact Group
FX & MIFID ECB FX Contact Group Richard Haynes Fixed Income Sales & Trading Compliance Department Citigroup 21 November 2007 FX & MIFID Introduction MiFID Overview What FX instruments are within scope
More informationBriefing note. Importance of derivatives for end-users. 4 September 2014. Association for Financial Markets in Europe
Association for Financial Markets in Europe Briefing note Importance of derivatives for end-users 4 September 2014 Executive summary The proposed FTT is expected to significantly increase the cost of derivative
More informationElectronic Trading in Australian Financial Markets
Electronic Trading in Australian Financial Markets Introduction Electronic trading of financial assets, such as bonds, equities and foreign exchange, was virtually non-existent 20 years ago but has grown
More information3. The Foreign Exchange Market
3. The Foreign Exchange Market The foreign exchange market provides the physical and institutional structure through which the money of one country is exchanged for that of another country, the rate of
More informationForeign Exchange Risk Management
Foreign Exchange Risk Management Perry D. Mehta Federal Reserve Bank of Richmond, Charlotte Office perry.mehta@rich.frb.org Seminar for Senior Bank Supervisors from Emerging Economies Washington, DC October,
More informationA practical guide to FX Arbitrage
A practical guide to FX Arbitrage FX Arbitrage is a highly debated topic in the FX community with many unknowns, as successful arbitrageurs may not be incentivized to disclose their methodology until after
More informationMarkets Committee. Electronic trading in fixed income markets
Markets Committee Electronic trading in fixed income markets Report submitted by a Study Group established by the Markets Committee The Group was chaired by Joachim Nagel (Deutsche Bundesbank) January
More informationCh. 6 The Foreign Exchange Market. Foreign Exchange Markets. Functions of the FOREX Market
Ch. 6 The Foreign Exchange Market Topics FOREX (or FX) Markets FOREX Transactions FOREX Market Participants FOREX Rates & Quotations Cross Rates and Arbitrage Foreign Exchange Markets The FOREX market
More informationHeightened Bond Liquidity Risk is the New Normal. Shushanik Papanyan Senior Economist BBVA Research USA
Heightened Bond Liquidity Risk is the New Normal Shushanik Papanyan Senior Economist BBVA Research USA Houston, TX September 10, 2015 The Signs of Weakened Liquidity The erosion of liquidity is more of
More informationHigh Frequency Trading Volumes Continue to Increase Throughout the World
High Frequency Trading Volumes Continue to Increase Throughout the World High Frequency Trading (HFT) can be defined as any automated trading strategy where investment decisions are driven by quantitative
More informationTravelex. Helping customers to send and spend money around the world. March 2014
Travelex Helping customers to send and spend money around the world March 2014 Notice to Recipient THE INFORMATION CONTAINED IN THIS CONFIDENTIAL DOCUMENT ( PRESENTATION ) HAS BEEN PREPARED BY TRAVELEX
More informationG100 VIEWS HIGH FREQUENCY TRADING. Group of 100
G100 VIEWS ON HIGH FREQUENCY TRADING DECEMBER 2012 -1- Over the last few years there has been a marked increase in media and regulatory scrutiny of high frequency trading ("HFT") in Australia. HFT, a subset
More informationTRADING VENUE LIQUIDITY
TRADING VENUE LIQUIDITY IT S QUALITY, NOT QUANTITY, THAT MATTERS AUTHORS Mike Smith, Partner Benjamin Smith, Partner Daniela Peterhoff, Partner Quinton Goddard, Principal CHANGING THE GAME The concept
More informationSeminar. Global Foreign Exchange Markets Chapter 9. Copyright 2013 Pearson Education. 20 Kasım 13 Çarşamba
Seminar Global Foreign Exchange Markets Chapter 9 9- Learning Objectives To learn the fundamentals of foreign exchange To identify the major characteristics of the foreign-exchange market and how governments
More informationTransparency, flexibility and liquidity -
Transparency, flexibility and liquidity - redefining standards in electronic FX options As the FX industry enters into a new era of electronic trading for FX options, Frances Maguire examines the key role
More informationThe Foreign Exchange Market and Central Counterparties
The Foreign Exchange Market and Central Counterparties Mark Manning, Alex Heath and James Whitelaw* The financial crisis has led to considerable efforts to improve risk management practices in financial
More informationELECTRONIC TRADING GLOSSARY
ELECTRONIC TRADING GLOSSARY Algorithms: A series of specific steps used to complete a task. Many firms use them to execute trades with computers. Algorithmic Trading: The practice of using computer software
More informationThe foreign exchange and over-the-counter interest rate derivatives market in the United Kingdom
394 Quarterly Bulletin 2013 Q4 The foreign exchange and over-the-counter interest rate derivatives market in the United Kingdom By John Lowes of the Bank s Statistics and Regulatory Data Division and Tsvetelina
More informationThe Danish Foreign-Exchange Market
33 The Danish Foreign-Exchange Market by Henrik Smed Krabbe, Market Operations Department and Lisbeth Stausholm Pedersen, Economics Department The foreign-exchange market is a market for purchase and sale
More informationInformation Release 1 September 2010. Central Bank Survey of Foreign-Exchange and Derivative Market Activity
Information Release 1 September 2010 Central Bank Survey of Foreign-Exchange and Derivative Market Activity The Central Bank today (Wednesday 1 September) publishes the results of a survey of foreign-exchange
More informationFX Alliance Inc. Sandler O Neill Global Exchange & Brokerage Conference. June 7, 2012
FX Alliance Inc. Sandler O Neill Global Exchange & Brokerage Conference June 7, 2012 Forward Looking Statements The following information contains, or may be deemed to contain, forward-looking statements.
More informationTraiana: Business & Product Overview. Gil Mandelzis - CEO, Traiana Inc. February 2012
Traiana: Business & Product Overview Gil Mandelzis - CEO, Traiana Inc. February 2012 Traiana Background Market leader in post trade, pre-settlement FX, Exchange Traded Derivatives (ETDs), CFDs/Equity Swaps,
More informationFX Strategies. In the Low Yield Environment. Eddie Wang Head of FX Structuring, Asia. Hong Kong October 2010
FX Strategies In the Low Yield Environment Eddie Wang Head of FX Structuring, Asia Hong Kong October 2010 Contents 01 Key Trends 02 FX Hedging Strategies 03 FX Investment Strategies SECTION 01 Key Trends
More informationBank of Canada Workshop on Regulation, Transparency, and the Quality of Fixed- Income Markets
Financial System Review Bank of Canada Workshop on Regulation, Transparency, and the Quality of Fixed- Income Markets Lorie Zorn In February 2004, the Bank of Canada hosted a two-day workshop, Regulation,
More informationForeign Exchange Benchmarks Final Report
30 September 2014 Foreign Exchange Benchmarks Final Report Content Page Executive Summary... 1 Summary of recommendations... 3 1. Introduction to the foreign exchange fix problem... 5 2. The construction
More informationhange reates pportunity.
hange reates pportunity. Fundamental changes in bond market structure have created a new liquidity-scape, and new opportunities to improve execution quality. Trading Venues Fixed Income A market structure
More informationICAP Execution Policy
ICAP Execution Policy August 2013 This Execution Policy is applicable to broker services provided to you by ICAP Group and/or any of its relevant group companies, as notified to you from time to time (
More informationIrish Results of the BIS Foreign Exchange and Interest Rate Derivatives Survey 2013
72 Aisling Menton 1 Abstract The Central Bank of Ireland participated in the most recent survey of global turnover in foreign exchange and over-the-counter single-currency interest rate derivatives. The
More informationImpact of Treasury s OTC Derivatives Legislation on the Foreign Exchange Market. Corporations participate in the foreign exchange market to:
ISDA International Swaps and Derivatives Association, Inc. 360 Madison Avenue, 16th Floor New York, NY 10017 United States of America Telephone: 1 (212) 901-6000 Facsimile: 1 (212) 901-6001 email: isda@isda.org
More informationMiFID II Trading Venues And High Frequency Trading
MiFID II Trading Venues And High Frequency Trading MiFID II Trading Venues And High Frequency Trading This is the third part in a series of Legal Longs on the MiFID II Directive [2014/65/EU] and the Markets
More informationWhy has FX trading surged? Explaining the 2004 triennial survey 1
Gabriele Galati +41 61 280 8923 gabriele.galati@bis.org Michael Melvin +1 480 965 6860 mmelvin@asu.edu Why has FX trading surged? Explaining the 2004 triennial survey 1 The 2004 survey shows a surge in
More informationForeign Exchange Benchmarks
FOREIGN EXCHANGE BENCHMARK GROUP Foreign Exchange Benchmarks Consultative Document 15 July 2014 Content Page Summary of draft recommendations... 3 1. Introduction to the foreign exchange fix problem...
More informationFESE Input to the Commission High Frequency Trading
FESE AISBL Avenue de Cortenbergh, 52 B-1000 Brussels VAT: BE0878.308.670 Tel.: +32 2 551 01 80 Fax : +32 2 512 49 05 FESE Input to the Commission High Frequency Trading Brussels, 23 February 2010 General
More informationThe Foreign Exchange and Interest Rate Derivatives Markets: Turnover in the United States, April 2013. Federal Reserve Bank of New York
The Foreign Exchange and Interest Rate Derivatives Markets: Turnover in the United States, April 2013 Federal Reserve Bank of New York The Foreign Exchange and Interest Rate Derivatives Markets: Turnover
More informationFLOW TRADERS REPORTS RECORD RESULTS IN THIRD QUARTER 2015
For immediate release FLOW TRADERS REPORTS RECORD RESULTS IN THIRD QUARTER 2015 AMSTERDAM, the Netherlands 13 November 2015. Flow Traders N.V. ( the Company or Flow Traders ) (Euronext: FLOW), a leading
More informationAdopting smarter go-to market strategies with FX White Label Services
FX Brokerage Operations FX Brokerage Operations Adopting smarter go-to market strategies with FX White Label Services As new firms enter the FX market, their need for technology, infrastructure and expertise
More informationRISK DISCLOSURE STATEMENT
RISK DISCLOSURE STATEMENT OFF-EXCHANGE FOREIGN CURRENCY TRANSACTIONS INVOLVE THE LEVERAGED TRADING OF CONTRACTS DENOMINATED IN FOREIGN CURRENCY CONDUCTED WITH A FUTURES COMMISSION MERCHANT OR A RETAIL
More informationCURRENCY FUTURES IN INDIA WITH SPECIAL REFERENCE TO CURRENCY FUTURES TRADED AT NSE
CURRENCY FUTURES IN INDIA WITH SPECIAL REFERENCE TO CURRENCY FUTURES TRADED AT NSE Vinayak R. Gramopadhye Assistant professor, ASM s Institute of International Business and Research, Pimpri, Pune-18 Abstract
More informationThis paper sets out the challenges faced to maintain efficient markets, and the actions that the WFE and its member exchanges support.
Understanding High Frequency Trading (HFT) Executive Summary This paper is designed to cover the definitions of HFT set by regulators, the impact HFT has made on markets, the actions taken by exchange
More informationHigh Frequency Trading Background and Current Regulatory Discussion
2. DVFA Banken Forum Frankfurt 20. Juni 2012 High Frequency Trading Background and Current Regulatory Discussion Prof. Dr. Peter Gomber Chair of Business Administration, especially e-finance E-Finance
More informationBest Execution Policy
Black Pearl Securities Limited "the Firm" Best Execution Policy This Best Execution Policy is applicable to Matched Principle Broker (MPB) services provided to you by the Firm and it should be read in
More informationAPT Integrated risk management for the buy-side
APT Integrated risk management for the buy-side SUNGARD S APT: INTEGRATED RISK MANAGEMENT FOR THE BUY-SIDE SunGard APT helps your business to effectively monitor and manage its investment risks. Whatever
More informationCREDITEX BROKERAGE LLP BEST EXECUTION POLICY
CREDITEX BROKERAGE LLP BEST EXECUTION POLICY Version 1.1 The Execution Policy is applicable to broker services provided by Creditex Brokerage LLP ( CBL ). Introduction When providing brokerage services
More informationPowerful tools for investing, speculating or hedging
Powerful tools for investing, speculating or hedging DERIVATIVE MARKET Equity Derivatives Single Stock Futures www.jse.co.za Johannesburg Stock Exchange Single Stock Futures are powerful tools for investing,
More informationActivity in the Norwegian foreign exchange and derivatives markets in April 2013
1 Activity in the Norwegian foreign exchange and derivatives markets in April 2013 Every three years since 1989, Norges Bank has conducted a survey of activity in the Norwegian foreign exchange market
More informationMobile. Autobahn on the move. Since 1996, Autobahn has been connecting clients to Deutsche Bank s innovative electronic product and service offering.
Deutsche Bank www.autobahn.db.com Mobile Autobahn on the move Since 1996, Autobahn has been connecting clients to Deutsche Bank s innovative electronic product and service offering. Autobahn Mobile, Deutsche
More informationExchange Rate - Codes of Best Market Practice and Shared Global Principles 1
30 March 2015 Global Preamble: Codes of Best Market Practice and Shared Global Principles 1 The wholesale foreign exchange (FX) market is a global market used by banks and other institutions, as well as
More informationA user s guide to the Triennial Central Bank Survey of foreign exchange market activity 1
Michael R King michael.king@bis.org Carlos Mallo carlos.mallo@bis.org A user s guide to the Triennial Central Bank Survey of foreign exchange market activity 1 This article provides an overview of the
More informationORDER EXECUTION POLICY
ORDER EXECUTION POLICY Saxo Capital Markets UK Limited is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary
More informationFX Trading and Technology Survey 2014
FX Trading and Technology Survey 2014 EXECUTIVE SUMMARY Regulation is a top concern and major catalyst for change in the FX market. This view reflects the uncertainties and pressures placed on businesses
More informationsmarttrade s FX trading system
TM smarttrade s FX trading system LiquidityFX Multi Platforms Single Dealer Platforms Distribution FIX API Platform Bridges White Label/HTML5 UI Pricing Skews & Spreads Liquidity Shaping Client Markups
More informationIntroduction to Equity Derivatives on Nasdaq Dubai NOT TO BE DISTRIUTED TO THIRD PARTIES WITHOUT NASDAQ DUBAI S WRITTEN CONSENT
Introduction to Equity Derivatives on Nasdaq Dubai NOT TO BE DISTRIUTED TO THIRD PARTIES WITHOUT NASDAQ DUBAI S WRITTEN CONSENT CONTENTS An Exchange with Credentials (Page 3) Introduction to Derivatives»
More informationThe foreign exchange and derivatives markets in Hong Kong
The foreign exchange and derivatives markets in Hong Kong by the Banking Supervision Department The results of the latest triennial global survey of turnover in the markets for foreign exchange (FX) and
More informationTitle VII: Derivatives (Wall Street Transparency and Accountability Act of 2010)
Title VII: Derivatives (Wall Street Transparency and Accountability Act of 2010) Summary: Regulates the previously unregulated, over-the-counter (OTC) derivatives market Requires registration of swap dealers,
More informationSynthetic Financing by Prime Brokers
yale program on financial stability case study 2014-1e-v1 november 1, 2014 Basel III E: 1 Synthetic Financing by Prime Brokers Christian M. McNamara 2 Andrew Metrick 3 Abstract Hedge funds rely on prime
More informationCORTEXFX. For Professional Clients Only
CORTEXFX For Professional Clients Only CORTEX CORTEXFX is BNP Paribas advanced multi-product FX trading platform CORTEXFX is BNP Paribas advanced multi-product FX trading platform. Employing cutting edge
More informationHigh Frequency Trading + Stochastic Latency and Regulation 2.0. Andrei Kirilenko MIT Sloan
High Frequency Trading + Stochastic Latency and Regulation 2.0 Andrei Kirilenko MIT Sloan High Frequency Trading: Good or Evil? Good Bryan Durkin, Chief Operating Officer, CME Group: "There is considerable
More informationSkipping the middle man will you be joining the FX ECN party?
FOCUS Skipping the middle man will you be joining the FX ECN party? E lectronic communications networks (ECNs) have been a prominent part of the foreign exchange market ever since electronic trading started
More information