Foreign exchange
Hedge funds to rethink strategy
LONDON – Large numbers of hedge funds drawn to the FX market over the past year are likely to modify trend-driven FX trading, after being stung by heavy losses this year.
Citi reorgs senior management
LONDON – Citigroup has set up a new products and services group for foreign exchange, as part of a sweeping reorganisation of senior management.
HSBC launches charting package on FXall
LONDON – HSBC has launched a free online FX charting package on multi-bank portal FXall's website, covering 15 major cross rates. The service, fxcharting@hsbc, is white-labelled from UK-based charting provider TraderMade.
Sun Platinum pays $40 million penalty
WASHINGTON – FX trading firm Sun Platinum was last week ordered to pay $40 million in civil penalties and restitution to customers, after a US district court entered a default judgment against the firm.
Buy side to see Matching prices
LONDON – Fund managers, corporates, and mid-tier banks will soon get access to Reuters' interbank FX rates for the first time, the UK vendor will announce today (September 13).
Former Soviet satellites' FX interest increasing
ASTANA, KAZAKHSTAN – The FX market for the states surrounding Russia has picked up in recent years due to liberalisation of capital and increasing international trade.
4Cast buys SocGen's directory and website
LONDON – 4Cast has bought the Dealers Directory from Société Générale, the French bank said.
Protecting speculative trade management positions
Some clients will have specific views on the future movements of currencies to which they have exposure. UBS's global FX solutions group shows how barrier strategies can be used to limit risk on these positions
FXall adds five price-makers
NEW YORK – Five banks have signed up to provide prices to multi-bank platform FXall, the firm said last week.
Calyon to outsource liquidity
PARIS – Calyon is in discussions with other un-named banks to outsource currency trading to them.
South Africa comes under global focus
JOHANNESBURG – South Africa is currently a focus of activity in the FX world, as global institutions such as the Continuous-Linked Settlement Group (CLS) and spot broker EBS add the region to their sphere of activity.
How spreads can affect profitability
Spread cost makes a big impact on profitability, says Michael Stumm, co-founder and president of Oanda. Here he shows how to assess just how much different levels of spreads cost
Rankings reveal diversifying inter-dealer market
The inter-dealer market for foreign exchange is shrinking, as an increasing number of mid-tier players retreat from market-making to become clients of the top firms. The banks that remain are working hard to consolidate their positions as liquidity…
EBS to admit funds to Spot
LONDON – Spot broker EBS will allow funds to trade on its EBS Spot platform from next year, it will announce this week.
Pension funds scramble for FX management
LONDON – UK pension funds' demand for foreign exchange management has gone through the roof over the past year, as trustees and managers seek to limit risk and improve returns.
Foley to launch Gelber FX desk
CHICAGO – Bank One's former forex options chief Justin Foley is joining Gelber Trading, a division of Chicago-based trading firm Gelber Group, to set up a new FX desk in September.
FX volumes up by a third
LONDON – FX trading volumes are up by nearly a third over the past three years, according to new research from UK consultancy ClientKnowledge.
New hedging policy adds $35m fizz to Fosters
MELBOURNE – Australian brewer Fosters Group added nearly US$35 million to its operating profits after changing its FX policy this year in response to upcoming accounting standard IAS 39.
Commerce FX storms US retail market
BOSTON – Commerce FX, a subsidiary of Boston-based Commerce Bank & Trust, is reaping the rewards of its entrance into the retail margin trading market last year, an official told FX Week .
Eliminating foreign exchange translation risk
FX translation can mis-represent a company's profit growth on its balance sheet. Cliff Bayne, senior exotics dealer, and Terence Yiu, chief dealer, at ABN Amro in Singapore, explain how to hedge the translation risk at minimal cost
CSAM to add emerging markets to FX management
LONDON – Credit Suisse Asset Management (CSAM) is looking to add emerging market currencies to its suite of forex management services from early next year.
Return of the voice broker
Cantor Fitzgerald revives voice broking market with spin-off firm. NEW YORK - Cantor Fitzgerald reversed a trend of consolidation in the broking market last week by spinning off a new firm to focus exclusively on voice broking.
CSFB gets OK for derivatives in China
HONG KONG – The China Banking Regulatory Commission (CBRC) authorised Credit Suisse First Boston (CSFB) to launch a financial derivatives business in China last week.
Bloomberg and Cognotec partner on streaming rates
LONDON – Bloomberg is bringing streaming FX rates to users of its Bloomberg Professional terminals, courtesy of a joint venture with FX vendor Cognotec, the two firms will announce today (August 2).