Opinion/Risk Management
Counterparty risk is driving industry change
The question of counterparty risk is leading to some significant changes in the foreign exchange business, chiefly in introducing innovative ways to manage this risk.
CLS on shaky ground with third-party providers
Just as the front office begins to show signs of support for CLS, there's now doubt over commitment from the utility's third-party service providers, with at least one rumoured to be scaling back.
Forex contends with great expectations
The foreign exchange industry is set for a shake-out next year as re-pricing of risk forces change in the make-up of the industry.
Chicago's wind of change
Felix Shipkevich, general counsel at CMS Forex in New York, highlights the difficulties of applying similar regulations to retail foreign exchange and the exchange-based commodities and futures markets
A call to action on electronic pricing
The protracted explosion in bid/ask spreads and implosion in liquidity since mid-September is causing mounting frustration among algorithmic traders.
The confusion over central clearing
Over the past month, the concept of central counterparty (CCP) clearing has taken centre stage, as concerns over counterparty risk consume the market in the aftermath of the collapse of Lehman Brothers in September.
Strike while the iron is hot
Pete Luxton, economic adviser, and Shant Movsesian, manager, foreign exchange options, at Informa Global Markets in London suggest a basket strategy to play euro weakness
Cutting costs
Pat Lefler, director, product marketing, at Wall Street Systems in New York, looks at ways smaller banks could reduce their trade-processing costs and remain competitive
FXPB versus CCP put to the test
With concern over counterparty credit risk at such elevated levels, some question what this will ultimately mean for the smaller banks out in the market-place.
UBS: an FX beacon in a sea of doubt
UBS practically swept the leader board in the currency category of FX Week sister publication Risk 's 2008 interdealer survey released last week.
The post-trade value chain
Nick Dyne, head of business development at post-trade technology vendor Logicscope in London, evaluates the prospect of a 'virtual' back office
The murky side of retail forex
In these days of heightened regulatory scrutiny, Saxo Bank could take it upon itself as a pioneer of the retail foreign exchange market to more effectively monitor who is using its technology and how.
Will we ever move to a fee-based model?
The competition to gain retail clients and white-label partnerships by retail trading companies and vendors is leading to more creativity in service provision.
The technological arms race continues...
One of the key takeaways from the FX Week USA congress last Tuesday is that the unrelenting spend on technology seen over the past few years is unlikely to end. A quick poll of delegates found that two-thirds will spend more on technology in fiscal year…
Automated FX trading models provide diversified alpha
David Popplewell, director of currency structuring at RBS in London, says to look beyond carry baskets and actively managed foreign exchange allocation to generate alpha from FX
New generation CEP for forex liquidity
A white paper being released today (June 30) is set to evangalise the benefits of using adaptive complex-event processing (CEP) technologies for liquidity management in foreign exchange.
Between a rock and a hard place
Patrick Lefler, foreign exchange consultant at Wall Street Systems in New York, looks at the future of CLS as demand grows for bilateral netting
Why you should know your customers
If market rumours are anything to go by, Currenex, Fixi and an FX prime broker could be locked in bitter recriminations after an algorithmic trading client of London-based investment house Fixi blew up last month.
Watching the market in 3D
Chip Lowry, senior managing director of Currenex, and John Vause, managing director of State Street's Global Link business for Europe, the Middle East and Africa, evaluate the evolution of the FX market's structure
A matter of preference
Jeffrey Todd Lins, director of quantitative analysis at Saxo Bank in Copenhagen, advances the tired debate over hedging versus alpha generation in wealth management.