Volatility
Hedge funds take profit on vol trades with Trump win
FX volatility drops sharply as positions unwind; rates market sees mixed reaction
Triggers of August market ‘flare-up’ still in place, BIS warns
Leveraged positions remain at risk of sudden unwinding, as margin calls play amplifying role
FX algo users change tack to navigate market doldrums
BestX data finds traders ditching TWAP in favour of more opportunistic execution styles
Traders flipped long yen vol ahead of global market rout
Hedge funds and real money bought long yen volatility in the run-up to Monday’s turmoil
Podcast: Lorenzo Ravagli on why the skew is for the many
JP Morgan quant proposes a unified framework for trading the volatility skew premium
Isda pushes to ‘decouple’ Simm calibration from model changes
Emir 3.0 prompts effort to separate risk-weight revisions from methodology updates
Are market-makers better at dealing with central bank intervention?
Lack of pain following BoJ intervention suggests dealers are better at handling event risk
FX options traders rethink vol drivers amid macro uncertainty
Market-makers believe more and more events will influence options pricing as political risk bubbles up during 2024
Measuring expected cost models on large FX trades
BestX study assesses factors influencing algo performance on trades over $100m in size
Banks scrutinised for offloading deal contingent risks on to funds
Critics say practice could lead to disclosure of sensitive client data
Corporates’ tech stacks face pressure from rising FX volatility
Treasurers and CFOs are worried about how their FX tech will cope with a potential increase in hedging activity
Why Isda ditched ‘off-cycle’ updates for Simm
Ad hoc updates riled industry, while regulators pushed for predictability in model recalibrations
Hedge funds ease off profitable China FX options trade
Some still hold positions but an appreciating renminbi may make them less profitable for now
NatWest Markets recognised in two categories in the 2022 Best Banks Awards
As uncertainty brought about by the Covid-19 pandemic makes way to rising volatility, healthy levels of trading across all FX instruments in 2022 led to another year of strong growth for NatWest Markets’ FX prime brokerage business
How MUFG Investor Services’ leading FX solution manages currency risk effectively
As volatility rips through financial markets and wild currency swings become the norm, the art of currency risk management is becoming increasingly complex
Hedge funds push yen options bets to next BoJ meeting
Target shifts as vol punts on change to rates policy fall flat
FX primary venues seek reversal of fortunes
EBS and Refinitiv fight to restore market share – but bilateral trading may be too entrenched, dealers say
Proactively managing volatile market data with the rule of three
Data volumes have spiked on the back of increased market volatility, and many systems across the front and back offices have struggled to keep up. KX explores how financial institutions can optimise data management and analytics platforms to cope with a…
Sterling shocks have traders back on the phones
FX Markets USA: liquidity shocks herald a shift back to voice trading
Best market data provider: 360T
The return of inflation over the past year and the response by many central banks to rapidly hike interest rates have awakened hibernating FX volatility, which has spurred a flurry of trading activity
UK budget gives sterling options traders a wild ride
Reaction to tax cuts sparks most active week for GBP/USD options traders since Brexit negotiations