FX Invest Europe
The quasi-extinction of free-floating exchange rates
Imran Ahmad and David Petitcolin of the emerging markets FX strategy team at Royal Bank of Scotland in London say the quest for growth by emerging and developed market nations has led to the quasi-extinction of free-floating exchange rates
China and Australia sign A$30bn currency swap
Australia joins the ranks of central banks with a bilateral currency swap line with China; reflects increased use of renminbi and closer trading ties between the countries
Macquarie to offer bespoke beta and absolute return commodity products from June
Macquarie is extending its existing commodity sales and trading platform with the launch of a commodity investor products business, which will be led by ex-Goldman Sachs global head of commodities
CCPs need to provide margin efficiency, says industry panel
Central clearing will place a huge burden on end-users, forcing CCPs to consider how best to create operational and margin efficiencies
Absa Capital unveils five ETNs based on precious metals and currencies
Absa Capital has launched five exchange-traded notes, providing investors with exposure to precious metals and currencies.
Move to electronic trading will increase hedge fund use of futures
Competition among buy-side companies and repercussions of Dodd-Frank will push hedge funds to trade electronically, says research from Tabb. Futures trading, mainly electronic, will also increase.
FSA: facing up to cross-jurisdiction conflicts
David Lawton, head of market infrastructure and policy at the UK’s Financial Services Authority, talks to Michael Watt
FX Invest Europe: Banks are retreating from market-making, managers warn
FX investment has become more challenging, as market-making banks facing new regulation have become less willing to take risk
FX Invest Europe: Developed market currencies still important despite EM buzz
The recovery of major economies will be crucial to the profitability of FX markets, despite the greater returns to be generated from emerging market currencies, according to conference speakers
FX Invest Europe: Investors back away from complex trades to avoid regulation
Some buy-side participants are moving away from complex FX options due to the uncertainty of forthcoming clearing and exchange trading regulations in the US and Europe, according to conference speakers
Unlocking alpha from currency managers through multi-manager platforms
Forex allocations are getting larger for many pension funds and asset managers, but accessing currency funds can be difficult. Two new currency manager platforms hope to grow the investor base by making access easier. By Michael Marray
Battle for clearing supremacy
Singapore Exchange (SGX) became the first of the major clearers to launch an OTC Asian FX forwards clearing business in October. But with bank-backed LCH.Clearnet and the CME hot on its heels with a non-deliverable forwards offering, can SGX maintain its…
Seeking a better benchmark for currency manager performance
With more mainstream advisers offering access to managed FX investments, bigger and increasingly sophisticated audiences are driving index providers to upgrade benchmarks and make them investable. However, some managers remain unimpressed by the existing…
Standard Chartered to roll out enhanced core custody platform
STANDARD CHARTERED IS upgrading its client offering by developing an enhanced core custody, settlement and safekeeping system. According to Standard Chartered, the core platform will give greater automation, customisation, direct market interfaces and…
Morgan Stanley Smith Barney increases managed futures allocation
Managed futures have low correlation to markets and perform well in difficult times, says MSSB. Choppy markets and frequent trend reversals created a difficult environment for the strategy this year.
Hedge fund redemptions rising for year end although in line with previous years
Despite the impact of turbulent markets and poor performance, hedge fund redemptions remain similar to 2010 levels. There are no signs of unusual investor activity, GlobeOp reports.
CFTC urged to rethink rules that threaten cross-margining
In a world where central clearing and bilateral collateral posting are mandatory, margin efficiency will be a big draw, and one obvious way to achieve it is through cross-product margining. Unfortunately, it is difficult to achieve – and Commodity…
Profile: CLS Bank's Bozian on regulatory co-ops and CCP settlement risk
Regulators are struggling to ensure they have oversight of over-the-counter market infrastructure without losing the benefits of centralisation. CLS Bank’s council of supervisors could be the precedent they follow. By Michael Watt
Short volatility strategy pays off in August
Currency managers going short volatility in August would have been top performers, benefiting from a spike in volatility towards the end of July from the dual effect of the US and European sovereign debt crisis, according to research from Royal Bank of…
Intervention: friend or foe?
If the trend is your friend, is central bank intervention your enemy? The answer is not so clear cut, say Christopher Cruden and Purnur Schneider, not least because of the breadth of interventions, which challenges attempts at uniform analysis
A new safe haven?
As G-7 economies start to look more volatile than some emerging markets, Nikki Marmery investigates whether the new rash of emerging markets indexes could offer some respite
Buy-side call for algorithmic execution in foreign exchange
The institutional buy side is becoming more sophisticated in the way it executes FX trades, and algo platform providers are accelerating their investment in new technology to keep up with growing demand. By Michael Marray
FX Invest: Buy-side cautions on collateral
Buy-side want eligible collateral extended to equities
FX Invest: Volatility trading comes up trumps in June
RBS research shows short-volatility strategy would have been top performer in June