Money Markets - Articles and news items

The rise of non-bank market makers

Expert Views, November 2016  •  1 November 2016  •  Alan Schwarz, CEO, FXSpotStream

Alan Schwarz, CEO at FXSpotStream, discusses with FX-MM the rise of non-bank market makers in FX and why clients will decide the ones that thrive.

Moscow Exchange benchmarks recognised as IOSCO compliant

Currency news  •  17 March 2016  •  MOEX

MOEX benchmarks for the currency, equity, bond and money market segments have been recognised as compliant…

Strate implements new Money Markets settlement system on TCS BaNCS Market Infrastructure

Technology news  •  16 February 2016  •  Strate

Strate is pleased to announce that as of Monday 15 February 2016, its new system for the settlement of money markets securities is fully operational…

EBS BrokerTec combines MyTreasury into product portfolio, entering the corporate client segment and Money Markets

Treasury news  •  28 July 2015  •  EBS BrokerTec

EBS BrokerTec, ICAP’s market-leading electronic foreign exchange and fixed income business, announces that, in line with its multi-product expansion strategy it has combined MyTreasury into its product portfolio….

Automating the Money Markets

July/August 2013  •  19 July 2013  •  

While there are many self-evident benefits of automating the money markets, there are also a number of less obvious advantages – and risks. FX-MM investigates…

Automating the money markets

April 2012  •  10 April 2012  •  Frances Maguire, Columnist, FX-MM

All markets are presently in a state of flux and fixed income is no different. However, as well as grappling with the impact of regulatory change, it is also trying to catch up in terms of automation, while competing in an extremely fragmented market. But, writes Frances Maguire, fixed income is changing fast.

The fixed income market brings increased complexity and greater difficulty in automating due to the fact that it is largely an over the counter market, while the risks in not improving automation are much more significant than for those trades executed on exchanges.

The MiFID regime will be extended to all financial products and is likely to include fixed income products in its transparency and market structure requirements. This may result in Broker Crossing Networks being regulated as Multilateral Trading Facilities (MTFs), and would have a huge impact on fixed income infrastructures. The introduction of mandatory clearing for Over-The-Counter (OTC) derivatives will also impact the fixed income players in needing to connect to central counterparty (CCP) clearing houses, against a backdrop of new regulatory guidelines from Basel III, which will raise the minimum level of capital reserves across the board.

An introduction to Tradeweb’s new FX options trading platform

April 2012  •  5 April 2012  •  

Tradeweb has pioneered the development of electronic multi-dealer-to-customer trading platforms across a number of fixed income, derivatives and money markets. Its FX options platform is the latest to go live.

Tradeweb has a 14 year history of developing and operating electronic marketplaces with a focus in Europe on dealer-to-customer platforms for fixed income and derivatives instruments. In that time, Tradeweb has built up a trading network of thousands of the world’s largest banks, asset managers, central banks, pension funds and insurance companies. It continues to develop new marketplaces across different asset classes, in every case aiming to deliver access to the high-quality liquidity and post-trade efficiencies that market participants demand.

How does Tradeweb’s newest platform work?
Tradeweb’s FX options platform is aimed at a broad suite of real-money institutional investors, hedge funds and corporate treasurers – a significant number of whom have existing relationships with Tradeweb in other markets.

War of the World Leaders

November 2010  •  10 November 2010  •  FX-MM

When the financial crisis first hit, governments the world over closed ranks, forming something of an ad hoc alliance to save the global economy. Yet, by October 2010, the talk has turned to conflict. As Drew Hillier reports, in the scrabble to carve out a decent economic recovery, the clear and present danger looms large that it’s going to be every government for themselves.

Reasons to be silly

Past issues, September 2010  •  23 September 2010  •  FX-MM

This being summer – just about – the media is full tilt into that strange semi-somnambulant state commonly known as the ‘silly season’. Politicos head for their holidays, C-listers are checked into rehab and the usual daily diet of crisis dissolves, leaving newswires – suddenly unencumbered by editorial oversight – to spew forth stories of wacky diets and tap-dancing hamsters. And as Drew Hillier sees, the FX market undergoes a similar hiatus: the big guns spend August reacquainting themselves with their families, leaving a skeleton crew of lesser mortals to mind the shop, many of whom stave off divorce by the simple expedient of bringing their offspring into work to horse around in the trading room. Which can make for an illiquid, illogical and illusory market… especially when the kids start making deals!

Clubbing Together

August 2010  •  16 August 2010  •  FX-MM

It was a certain Julius Henry Marx – otherwise known as Groucho – who memorably announced he I didn’t care to belong to any club that would have him as a member! Casting such Marxist sentiment aside, Drew Hillier sees how here in the UK, Pro-European captains of industry have been lining up to voice their belief that Britain should get with the euro some time in the future.

As far back as 2003, a pro-euro call went out from many of the Britain’s most senior business figures; despite all the recent kerfuffle over sovereign debt crises and plummeting credit ratings, by far the majority of these highprofile personalities still hold firm to the view that the country would be better off as a fully signed up member of the single currency. One such luminary, Sir Nick Scheele, former Chief Operating Officer of the Ford Motor Company, in explaining his reasoning, first pointed out how the eurozone is Britain’s largest trading partner by far, highlighting how nearly 70% of all the UK’s trade is done with eurozone currencies.

Acropolis Now…

June/July 2010  •  14 July 2010  •  FX-MM

“Saigon… s**t! I’m still only in Saigon… Every time I think I’m gonna wake up back in the jungle.” These are the now infamous first lines uttered by Captain Benjamin L. Willard – the main character played by Martin Sheen in the seminal Vietnam War movie, Apocalypse Now. With the markets currently bunkered down against the distinct whiff of contagion spreading across the EU battlefield and beyond, there will doubtless be many traders heading for their holidays paraphrasing those apocalyptic words!

Pigs might fry!

April 2010  •  17 April 2010  •  FX-MM

There’s a curious proverb, the provenance of which I am not sure (and I promise I didn’t make up), that goes: “A pig on credit makes a good winter but a bad spring.”

Portugal, Italy, Greece and Spain – whose deliciously un-PC acronym is often considered somewhat objectionable – now, collectively, seem to be casting sensibility aside and going full-tilt towards living up to their PIGS tag. But we at last have a deal brokered in respect of Greece, so as FX&MM Editor Drew Hillier muses, we can look forward to a surge of confidence in the markets and a rally in the euro….err not quite.

Credit ratings and the currency markets

April 2010  •  17 April 2010  •  FX-MM

Over twelve months since Spain saw its triple-A credit rating stripped by Standard & Poor’s, who then turned its guns on Portugal, and then more recently had a further go at Greece, debate has intensified about the impact and influence exerted by credit ratings agencies and the numerous channels through which capital account restrictions may affect economic activity. Drew Hillier looks at how such decisions weigh on the currency markets, and, furthermore, in terms of corporate activity, the potential risks that may arise in terms of currency mismatch if firms without foreign currency earnings increase their foreign currency debt leverage.

The road to nowhere?

February 2010  •  22 February 2010  •  FX-MM

At the time of writing, as the great and the good headed home from Davos World Economic Forum, bankers have indicated that they may agree to far-reaching reforms whilst financial regulators warned that they could take drastic action to take some of the risk out of the financial industry. As to how this reflects – and indeed impacts – on the markets going forward, Drew Hillier speculates that we may not be going forward at all, merely differently sideways… tempered with an overwhelming feeling that as far as a recovery is concerned, we have yet to fully ascertain if the wheels may be either half on or half off! By Drew Hillier

Keep taking the medicine

December 2009 / January 2010, Past issues  •  22 December 2009  •  FX-MM

As 2009 draws to a close, a huge degree of uncertainty remains as to the true efficacy of government programs aimed at rescuing the financial system and wider economy. In the hugely costly case of Quantitative Easing, authorities admit they cannot fully measure its effect; instead, they just think – or hope – it works. Whatever the whys and wherefores, we wave good riddance to the year just gone with yet more poor-to-dreadful news percolating out of the various global economies; Dubai, Greece, Portugal, Ireland and the UK… all of whom look in dire need of a virtual miracle to avoid a pretty grim decade yet to come.

 

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