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April 2011
8 April 2011
The Financial Services Industry is a fast-moving one: there are always new developments, new products, new segments – and, of course, sometimes there are new regulations. In the next few years, we will all face an avalanche of regulatory changes including the proposed EU regulation on OTC derivatives, central counterparties and trade repositories (TRs). This new set of rules, requiring OTC derivative contracts to be registered at a trade repository, is expected to come into force at the end of 2012. It’s time to start getting ready now, says Thilo Derenbach, Deputy Managing Director, REGIS-TR.
8 April 2011
Further to FX-MM’s article on cloud technology last month, Jerry Brunton, Marketing Director, Global Banking & Financial Markets, BT, delves deeper into the application of cloud technology in the trading space, whilst examining the drivers behind the continued growth of cloud technologies among trading firms.
There has been much discussion, coupled with a healthy dose of controversy, about the rapid expansion of the use of cloud technology for professional trading, and in particular, trading in the FX market. At one end of the discussion, there are those who would say that trading in the cloud is still years off – that is to say, when the technology finally achieves the levels of security, reliability, and speed that are necessary for supporting institutional, electronic trading. At the other end of the spectrum, many would argue that we’re already there, with trading in the cloud taking place all around us, as it has done for 10 years or more.
8 April 2011
Since his appointment as CEO of SmartStream in 2009, Philippe Chambadal has transformed the company from a well-respected trade reconciliation vendor into a trusted post-trade processing solutions provider and a strategic partner for banks, broker dealers, asset managers and corporates alike. Eleanor Hill, Editor, FX-MM, talks to Philippe about the company’s plans for 2011 as well as the trends, challenges and opportunities he is seeing in the post-trade arena.
For a man who has spent the past week flying between Dubai, New York and London, Chambadal looks remarkably relaxed and composed as we begin our discussion. Having done my homework, I know that Chambadal is quite a force to be reckoned with intellectually – not only did he co-found Reuters New Media and MetaMatrix (acquired by RedHat), Philippe also led the acquisition of SmartStream in 2007, seeing significant potential in the company.
8 April 2011
From Europe to Japan and on to the Middle East, Dean Peters-Wright, provides analysis on the latest macroeconomic events and the impact they are having on currencies, businesses and economic growth.
Ireland continues to negotiate the scope of its ECB bailout package, as the country’s banks face the scrutiny of the latest stress tests that will ultimately determine the interest rates at which Ireland will pay it back. The spotlight, however, has been taken quite dramatically by Portugal, with Spain backstage ready to come on at any moment and the audience desperately hoping that the curtain will come down long before that.
8 April 2011
During a recent speech in Washington, Dominique Strauss-Kahn, Managing Director of the IMF, called for a new world currency that would challenge the dominance of the dollar, whilst also helping to minimise future financial instability. Eleanor Hill, Editor, FX-MM, looks at the history of supranational currencies and discusses whether the answer to a new world currency unit in fact lies in the UK private sector with the rise of the Wocu.
Global imbalances are back, with issues that worried us before the crisis – large and volatile capital flows, exchange rate pressures, rapidly growing excess reserves – on the front burner once again. Left unresolved, these problems could even sow the seeds of the next crisis,” warned Dominique Strauss-Kahn during an IMF panel discussion on the international monetary system in February this year.
8 April 2011
The use of algorithms in FX is no longer limited to the hedge funds; traditional fund managers and corporate treasurers are now also turning to algorithms for aggregation and smarter order routing and with no centralised exchanges, the use of algorithms to aggregate market fragmentation and find the best price in FX is well established. However, while order types similar to the equities market are being used for automating FX trading, the different characteristics of the FX market mean that the use of algorithms by FX traders is likely to take a slightly different direction. Frances Maguire reports.
8 April 2011
As the extension of credit lines is the main function of a prime broker, the credit crunch, subsequent squeeze and regulatory rethink on the management of credit and counterparty risk have impacted and are still shaping the future role of the prime broker in foreign exchange. Frances Maguire reports.
The single biggest change to FX prime brokerage offerings will be the introduction of mandatory clearing for FX, as outlined in the Dodd-Frank Act last year. FX options and non-deliverable forwards (NDFs), and possibly also all FX swaps and forwards, will need to be cleared through central counterparties (CCPs), similarly to exchangetraded derivatives and equities contracts.
8 April 2011
As the FX prime brokerage market continues to mature, banks can no longer compete on technology alone. Eleanor Hill, Editor, FX-MM, talks to Edward Pla, Managing Director and Global Head of FX Prime Brokerage and Clearing, UBS, about the ways in which banks offering FXPB can gain competitive advantage, whilst also ensuring consistently best-in-class services for their FXPB clients.
8 April 2011
FX prime brokerage is a service that provides multiple benefits for active FX market participants. When using a prime broker, credit is no longer an inhibitor to achieving best price, operations become more efficient, risk management is easier, collateral is optimised and documentation is simplified; and all this is supplied by a dedicated team of market professionals, says Puneet Singhvi, Director of CitiFX Prime & Derivatives Clearing.
8 April 2011
No longer are treasury staff and traders tied to their desks. No longer must decisioning await the return of authorised signatories for transactions to go forward. Moreover, tablets will enable greater uptake of corporate mobile payments and trading – as providers work to improve functionality. Denise Bedell reports.
Mobile technology for payments and cash management is, with a few glowing exceptions, still in the early stages. But the advent of the tablet computer and its uptake in corporate environments will undoubtedly revolutionise how companies can manage payments and manage their physical and financial supply chains going forward.
8 April 2011
Research suggests that one of the most commonly underestimated corporate risks is FX risk, which includes the execution and operational risks associated with foreign exchange transactions. FX-MM examines the steps that pioneering treasurers are taking to regain control of their FX risk and looks at the benefits of automated FX trading via a multi-bank portal.
As is the case with most landmark trends in the finance arena, it is usually the big players who dare to – or can afford to – branch out first. Mid-tier and SME organisations then aspire to these best practice goals and over time, the trend becomes the norm.
8 April 2011
It’s not often that you come across an organsation that has been in the capital markets industry for several decades, but Henyep Capital Markets has an operational history that spans over 30 years. Henyep Capital Markets is the capital markets trading division of global financial conglomerate Henyep Group. In this in-depth broker study, Marios Chailis, Henyep Group’s Marketing Director discusses the company’s current strategy and future growth plans.
8 April 2011
It’s been an unbelievably challenging start to 2011 for the Asia Pacific (APAC) region, with natural disasters occurring at an unprecedented frequency. Nevertheless, as FX-MM discovers, another year of solid growth is expected from the region as the Asian economies continue to drive the global recovery forward and long-term fundamentals remain positive. But what will the cost of reconstruction be in the short-term and how will policymakers respond?
Stretching from China and Hong Kong, across to Japan and down to Australia and New Zealand, the Asia Pacific region is one of today’s most dynamic business and trade territories. Due to the broad availability of cheap labour, in Asia in particular, the region is well known for its manufacturing capabilities, including consumer goods, textiles, electronics and cars. Moreover, the region also boasts some of the world’s most promising emerging economies.
8 April 2011
A leading specialist consultancy in bespoke solutions for Back Office administration of OTC derivatives, riskart has announced the appointment of Dragons’ Desk as its distributor in the Asia Pacific region. Dragons’ Desk is a leading financial technology firm with offices in Hong Kong and Japan helping diverse financial institutions to implement superior technology solutions and best of breed investment practices.
8 April 2011
Over the coming editions, FX-MM will be introducing the members of its newly formed editorial board in a series of mini-interviews. This month, we speak with Accuity’s Malcolm Taylor about STP, the true cost of compliance, Lance Armstrong and more...
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