Risk management
Cross-border resolution hinges on trust
Work to develop a cross-border recovery and resolution regime is progressing, but the need for individual regulators to sign co-operation agreements is seen as a potential problem. It boils down to trust – and that worries some participants. Michael Watt…
Insight Investment: The need for non-cash variation margin
Pension funds tend not to have a lot of cash lying around, making it difficult for them to meet clearing house margin calls. Specialist asset manager Insight Investment is pressing for a solution. By Tom Osborn
FCStone fined $1.5 million for risk controls failings
Futures broker suffers $127 million in losses following risk management failing in client account
Forex brokers brace for DDoS hacker attacks
While financial software providers offer protection against web attacks, the peculiarities of foreign exchange mean brokers might have to create bespoke solutions
Return of currency trends a boon for macro managers, says Insight Investment
The strong currency trends in 2013 have been good news for the asset manager, which uses strategies aiming to generate alpha from currency positions
Renminbi hedging and Africa: the final frontier
Bond deals in Brazil and Mexico and initiatives to make London a centre for RMB trading have signalled the global status of China’s currency. A rapid expansion of Chinese trade with Africa has seen the yuan move into the final frontier in global…
CTAs are an inexpensive and effective tail hedge, says AHL
Momentum strategies are rooted in observable market phenomena and tend to perform well in times of financial stress, says AHL’s chief scientist.
Japan institutional investors start unwinding dollar/yen hedge after steep yen drop
While foreign hedge funds have been driving down the value of the yen, now Japan insurers may strengthen the trend
CME launches three-year CNH futures contract to meet dim sum bond hedging demand
CME to offer CNH futures from February 25; becomes second provider after HKEx launched CNH futures contract last September
FX Invest latest edition now available
Read the about the latest developments in forex and cash management; alpha vs beta in currency; the true value of high-frequency trading and the challenges facing the emerging markets
FircoSoft expands its solutions within India through its new partner Peocit
Transaction monitoring technology gains traction in India
The case for gold
Axel Merk and Kieran Osborne at Merk Investments believe recent financial shocks and ongoing turbulence provide major incentives for those considering gold, not just as a safe haven, but also as a protection against inflation
Taking HFT to task
As a small group of high-frequency traders (HFTs) rise to prominence as market-makers in spot FX, the reliability of their prices during times of market stress has been called into question – so much so that electronic trading platforms are taking steps…
Integrate to accumulate
Increased volatility, lower availability of credit and emerging market expansion is accelerating the integration of cash management and FX, says Laurence Neville
SuperDerivatives and Bloomberg scoop vendor awards
SuperDerivatives has risen gradually to the top spot for risk management and options pricing, while Bloomberg has again won best market data provider for FX
Sucden Financial builds up Gold service
Institutional broker extends gold trading size to enable hedging in size
Hong Kong insurers hedge out their US dollar exposure
Insurers in Hong Kong are revising their long-term policy of not hedging out their US dollar exposures
NAB eyes further expansion after technology overhaul
National Australia Bank completed a three-year technology overhaul in August and now its head of FX and commodities trading is planning further geographical expansion. Miriam Siers reports
Currency managers speak out on currency risk, safe havens, regulation and China
Saima Farooqi asks four industry experts to describe their experiences during 2012, and what they are looking forward to in 2013
Are currency managers adding value?
Latest edition of FX Invest now available
Offshore deliverable renminbi derivatives market grows despite fall in trade volumes
Despite a fall in offshore renminbi trade volumes, dealers say corporates are making increasing use of CNH forwards and options markets to hedge price exposure. Joti Mangat investigates
Central banks turn to RMB assets
Central banks in Asia are diversifying their holdings into RMB, marking the latest stage in the currency’s internationalisation
Optim Invest launches as BNP Paribas IP exits currency management
D'Hautefort revives Overlay Asset Management as Optim Invest, says demand for currency management buoyant
Shining a light on high-frequency trading
Forex trading platforms are intent on tackling any negative effects of high-frequency trading, but the speed of the practice makes it tough to manage the risks. Robert Mackenzie Smith reports