Foreign exchange

Interbank FX trading takes off in China

SHANGHAI – China Foreign Exchange Trading System (CFETS) opened its interbank FX trading business last week, leading to speculation that a shift in currency policy may be imminent.

Traders lured by hedge funds

LONDON – Banks are finding it hard to hold on to top-quality sales and trading staff as the exodus to hedge funds has gathered pace.

Dollar hits European banks

ZURICH – The dollar’s correction at the beginning of the year hit European banks, which posted a mixed bag of results in forex last week.

Size matters, finds Greenwich survey

GREENWICH, CT – The ability to execute large currency trades is one of the key components in winning new FX business from corporates and institutional clients, according to latest research from Greenwich Associates.

COESfx adds real-time FX data

PLAINVIEW, NEW YORK – Electronic currency network (ECN) COESfx has launched a new service, providing real-time streaming forex data directly to currency traders’ desktops.

French referendum ups volatility

PARIS – The French referendum on the European Union (EU) constitution, set for May 29, has already affected euro trading, and continuing uncertainty will lead to further volatility.

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

GFI expands Fenics with bank volatilities

NEW YORK – Interdealer broker GFI is expanding the coverage of its Fenics pricing and risk tool to include volatility surfaces – the methods by which options are priced – from bank clients.

IFX launches forex fund

LONDON – IFX Capital Management, a division of IFX Markets, will launch the Zenith Currency Fund this week.

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

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