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Quarter-ends add $184bn to FX swap costs, study finds
A new research paper suggests the widening of bid/ask spreads at quarter-end could be generating as much as $184 billion in additional transaction costs within the foreign exchange swaps market.
The paper, “Foreign Exchange Swap…
US dealers slam capital hit on clearing for unreal CVA risk
US banks warn that proposed prudential regulations could force them to capitalise a risk from their clearing clients that may not even exist. Sources say it could increase costs for end-users of cleared products, and potentially reduce…
As T+1 looms, non-US firms consider out-of-hours trading
Asset managers outside the US are looking to automate foreign exchange trades to help meet tighter cutoff times for settling the transactions.
The impending transition from T+2 to T+1 settlement in the US in May presents a logistical…
Trend following struggles to return to vogue
For quant investors, a bimodal distribution in data is often a good thing – pointing to a sharp distinction between two possible outcomes, a clear signal, in other words. Except when the binary split occurs among the signals themselves.…
Dealers inch closer to clearing of FX forwards
Markets usually need a carrot or a stick to encourage meaningful change. For interest rate derivatives, the post-crisis reform plan that stemmed from 2009’s Group of 20 meeting became the stick that pushed swap trading onto clearing…
Dealers braced for Taiwan swaps clearing mandate
International banks are rushing to become clearing members at Taiwan Futures Exchange (Taifex) ahead of an expected directive from Taiwan’s financial regulator that will make it mandatory for banks to centrally clear their New Taiwan…
Why last look needs a new look
For what seems like an eternity, the controversy surrounding last look practices has hung over the foreign exchange industry like a dark cloud. The practice involves a liquidity provider (LP) rejecting or requoting a trade after receiving…
Kings and kingmakers in the Ucits FX forwards market
Vanguard, JP Morgan Asset Management and BlackRock are the largest buy-side users of foreign exchange forwards among European investment funds, with HSBC the top dealer, according to exclusive new data from FX Markets’ Counterparty Radar…
Citi and JP Morgan vie to extend collateral optimisation to CCPs
Two of the largest US banks are backing new initiatives aimed at optimising collateral posted to clearing houses.
In November, JP Morgan expanded its CCP Margin Exchange service to 13 clearing houses via a tie-up with Baton…
IMC appoints head of FX trading
Ramon Puyane is set to join IMC Trading as its head of foreign exchange trading, following a break from the industry.
Puyane will start at the Dutch market-making firm on April 1, reporting to European managing director Thomas Besselink.…