March 2011

The tide is turning

15 March 2011
Social media in financial markets, and FX in particular, is going to change the way in which we do business, says Stefan Basiuk, Co-Founder, LetstalkFX.com. While there may be many voices that currently dispute this, the simple retort, says Basiuk is ‘look at how governments are being overthrown by social media, what makes your industry so special?’ Quite frankly, social media is disruptive - and for the better in our view - because it’s about connecting people and strengthening relationships. It’s about transparency, yes I know touchy subject, but that’s what customers want (some of the time).

Adapting for success

15 March 2011
Without a crystal ball, it’s impossible to tell what the FX market will look like in ten, five or even one year’s time. What is certain though is that those who are ready for change – and prepared to embrace it – will be the ones leading the pack. Eleanor Hill, Editor, FX-MM speaks to Andrew Coyne, Managing Director, Head of FX Prime Brokerage and G10 e-commerce, Citi about the impact of forthcoming regulation and the role of prime brokers in safeguarding the FX market. Even the word ‘regulation’ is enough to send many market participants scurrying for cover. Nevertheless, regulation is a modern phenomenon that we simply cannot hide from. While the market recognises the need for transparency and accountability, why do market reforms such as those outlined by Dodd-Frank and the European Market Infrastructure Regulation (EMIR) still have the ability to kill conversation on the trading floor? And what are the main challenges facing FX in light of forthcoming regulatory changes?

Running for cover?

15 March 2011
Unrest in the Middle East and North Africa has raised fears among investors, sparking a broad-based exodus from risky assets. With oil prices rising and some disappointing numbers coming out of the UK, is the global recovery coming under threat? And how will the currency markets hold up against the stormy weather?

Next generation technology

15 March 2011
The FX market has evolved electronically by embracing change and being fast to adapt to the changing requirements of both new entrants and established players. While once the OTC FX market was seemingly always playing catch-up with the equities and derivatives market in terms of processing and trading technology, the need to create standardised processes [...]

Managing FX exposure: a comprehensive approach

15 March 2011
For any given capital structure, asset portfolio or set of transactions there is a need to quantify risk, highlight opportunities, enhance returns and analyse the market. Lloyds Bank Corporate Markets offers a sophisticated suite of foreign exchange market analytics, tactical market timing and relative value indicators and strategic analysis around derivatives and portfolios, says Jwan Mella, Associate Director, Risk Solutions Group, Lloyds Bank Corporate Markets.

Life in the cloud

15 March 2011
Corporates are increasingly making use of the cloud to decrease costs and increase processing power. Treasurers and traders are getting more comfortable with using cloud-based solutions, but data security and speed are still issues that make the cloud untenable for some functions or processes. Denise Bedell reports. Cloud computing has been much in the spotlight of late, but the concept has been around for a very long time. From Softwareas- a-Service (SaaS) in a private cloud to Platform-as-a-Service (Paas) in a hybrid cloud, the way that IT tools and applications are managed and delivered is changing.

Transaction banking: the shared future

15 March 2011
From Basel III to SEPA, credit availability, counterparty concerns and regional versus global capabilities - transaction banking has never been of so much interest to so many. Industry leaders discuss trends, challenges and opportunities for the transaction banks and their clients in 2011...

Technology M&A – return of the mega deal?

15 March 2011
A significant rise in the value of global technology deals completed in 2010 – €76bn, up from €37bn in 2009 – can only mean one thing: the mergers and acquisitions market is starting to recover. FX-MM talks to PwC about the outlook for M&A activity in the global technology sector in 2011, the key hot spots for deal activity, as well as shifting deal dynamics and the role of private equity. Whilst a general upturn in M&A activity is likely over the next twelve months, there will be some key hot spots for technology deals, driven by seismic shifts affecting certain segments of the market. A significant increase in financial regulation in the wake of the global financial crisis, for example, looks set to be a strong driver for deal activity in the financial technology sector this year.

Cruising on the economic autobahn

15 March 2011
Home to the European Central Bank and a thriving financial centre, Germany is not only Europe’s largest economy but also a keystone of the global market. Having recorded impressive growth in 2010 while its European peers struggle to regain their feet, the German economy is expected to continue its upward trend into 2011. But how will Germany overcome the challenges facing the single currency area to make the Eurozone more competitive? As the most populous and industrialised nation in Europe, Germany is recognised as the region’s key exporter and is famed for the high-quality goods that it produces. It is precisely this export strength that helped the country to rebound from the defeats it suffered in World War I and II, as well as the legacy of the Cold War that divided the nation until reunification began in the late 1980s.

The beating heart of Europe

15 March 2011
As one of the few global banks to have its main trading floor in Frankfurt, Commerzbank Corporates & Markets boasts extensive knowledge of the local German market, whilst providing 24 hour global coverage through additional trading desks in London, New York and Singapore. Eleanor Hill, Editor, FX-MM, talks to Christian Drueke, Head of Spot FX, Commerzbank, about Germany’s role as a trading centre as well as the key trends and innovations that Commerzbank is seeing in today’s FX market.

Automating derivatives management – challenges and solutions

15 March 2011
The upcoming European Commission proposals on the reform of the Over The Counter (OTC) derivatives market are making companies realise the importance of having proper automated systems in place to effectively manage the post-trade processing of OTC derivatives. For example, a recent report by research and advisory firm Celent found that confirmations and affirmations still constitute more than half of OTC post-trade processing costs largely due to lack of automation. “Companies realise that processes and systems will need to be reviewed and modified to comply with EC proposals on “standardised” OTC derivatives”, explains Gerrard Mahony, Business Development Director at riskart – a leading Derivatives Management consultancy.

Improving efficiency on a budget

15 March 2011
At a time when regulators and clients are demanding increased transaction visibility and heightened reporting and audit trail capabilities, many firms are examining how they run their post-trade operations and the software they use to run them. As a result, organisations are examining new business models that can deliver the more efficient and cost-effective back office operations that they require.