Investment
Protection with potential
Besa Deda, Commonwealth Bank of Australia's Sydney-based currency strategist, presents a way of combining a view that the aussie will weaken while protecting against adverse fluctuations for an Australian exporter
ABN Amro cashes in on retail demand
HONG KONG – ABN Amro is capitalising on retail demand for exposure to forex markets with the launch of the first FX-linked equity notes for retail investors based in Hong Kong.
Renminbi takes first step
BEIJING – Banks are predicting further significant appreciation in the renminbi following the long-awaited shift in the currency announced last Thursday.
Relative value after the peg
Marios Maratheftis, FX strategist with Standard Chartered in London, looks at where to find value in Asian currencies following the end of the Renminbi's dollar peg
London bomb blasts test contingencyplans
LONDON – Last Thursday’s terrorist attacks on London put the FX market’s contingency plans to the test, as explosions ripped through the heart of the global forex capital.
Hedge fund interest in forex continues
London – High profile banks and investment houses are launching currency fund of hedge funds (FOHFs), showing the continuing interest as FX as an asset class.
Using probability for barrier placement
Mark Miklavs, director, structured derivatives at HBOS treasury services in London, develops an option hedging strategy to take advantage of the recent pick-up in volatilities by using normal distribution to provide a theoretical perspective on barrier…
CMC Markets adds new products and offices
LONDON/TORONTO – Online FX platform CMC Markets is set to expand with the launch of new currency baskets and additional offices globally.
EM options taking the lead
LONDON – Emerging market currencies is the biggest market for options traders, according to a survey by sister publication Risk magazine, with these units representing more than a third of the total traded.
Benefiting from yuan revaluation
The Lloyds TSB Financial Markets team suggests how to benefit if the Chinese yuan revalues and Asia follows suit
How to benefit from a weaker pound
For the currency manager looking to take advantage of fresh sterling weakness, Simon Derrick, head of Bank of New York's currency strategy team, describes a simple, low-cost way for them to express their view
Profiting from a renminbi revaluation
Adam Cole, senior currency strategist at Royal Bank of Canada in London, looks for options strategies to play a China revaluation within a G-10 FX portfolio
Capping downsides, tapping upsides
Jeffery Todd Lins (right), director of quantative analysis, and Peter Ager Hafez, senior research associate, at Saxo Bank, suggest a mechanism to cap the downside risk while allowing for upside potential in the absence of options on a currency fund
Managers turn to options
LONDON – Currency managers are increasingly turning to options to derive returns from implied volatility in the currency markets.
A cheaper way to take a bearish stance
Ian Stannard, senior currency strategist at BNP Paribas in London, suggests using an anticipated short-term recovery to significantly reduce the cost of entering a longer-term bearish strategy on USD/JPY
New investors spur 2004 forex growth
GREENWICH, CONNECTICUT – An increase in FX trade by almost a quarter last year was largely driven by a new class of professional FX investors.
Options traders top pay bracket
LONDON – UK forex options dealers raked in the largest pay packets this year, with total packages averaging more than £500,000, according to a survey by City-based executive search firm, Napier Scott.
Deutsche offers sharia FX product
MANAMA, BAHRAIN – Deutsche Bank has structured what it claims to be the first FX hedge to be compliant under sharia law.
Fade-out zero-cost collar for hedgers
Since the beginning of the year, we have witnessed a EUR/USD spot consolidation below 1.37. Also, the last move from 1.2700 took EUR-USD up to the middle of the range 1.27 / 1.37. Many USD buyers are therefore looking to zero-cost collars, one of the…
Further fraud allegations from CFTC
WASHINGTON, DC – The Commodity Futures Trading Commission (CFTC) has charged another firm for defrauding customers using a forex scam.
A broader view than the yuan
While much attention is focused on a likely shift in the value of China’s currency, Ashish Advani (right), director of risk solutions at Travelex in Toronto, points to a way of hedging against the more imminent risk of free-floating Asian currency…