Revista e-forex

Revista E-forex
O Índice de Força da Moeda mostra como as principais moedas executam uma contra a outra em tempo real. Você pode ver de relance que a moeda está em ascensão e qual está em declínio, dando-lhe informações valiosas sobre a pressão de compra e venda.
Uma leitura de 100,0% indica forte pressão de compra, e um valor de 0,0% mostra que a moeda está sendo ativamente vendida.
Para evitar o viés de volatilidade, o Índice de Força da Moeda usa algoritmo de cálculo sofisticado, o que o torna uma ferramenta confiável no processo de tomada de decisão de cada operador.
O Índice de Força da Moeda é calculado em tempo real, em cada tick. Os cálculos são baseados no período de 1 minuto. As barras indicadoras coloridas e os valores percentuais para cada moeda são atualizados automaticamente a cada 5 segundos.
Notícias do mercado em tempo real.
fonte: FxWire Pro.
Índice de força da moeda.
Expert View.
Um sistema baseado em ações de preço simples para uma cesta de pares de AUD.
É relativamente fácil encontrar artigos sobre sistemas de negociação que obtenham resultados históricos positivos a longo prazo em pares de Forex altamente líquidos. No entanto, isso se torna mais difícil à medida que nos movemos para pares mais exóticos, já que os custos de negociação geralmente dificultam o desenvolvimento de sistemas de negociação lucrativos para esses símbolos. No entanto, há um número significativo de cruzamentos altamente líquidos que são negociados a baixos custos de comercialização (spreads de 3 a 5 pips) e geralmente podem ser considerados baratos o suficiente para o desenvolvimento de estratégias de negociação úteis. Neste artigo vamos falar sobre uma estratégia para a negociação de uma cesta de símbolos contendo AUD, em particular o AUD / JPY, EUR / AUD e AUD / GBP. Como estes são alguns dos pares de negociação menos comumente usados.
Essa estratégia baseada em ações de preço usa comparações simples de abertura / alta / baixa / baixa nos gráficos diários. As regras de entrada e saída são mostradas abaixo. Note que o número entre parênteses representa quantas barras no passado olhar para trás (Open [1] = abrir da última barra fechada, Low [10] = baixo da décima barra fechada do passado, etc).

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Diário forex resumo: Euro, yen, Aussie & amp; CAD.
A Europa estava fechada para a segunda-feira de Páscoa e o euro teve o menor volume desde o dia seguinte ao Natal. Depois de abrir a noite de domingo e trocar mais de meio centavo no verde, o euro reduziu todos os ganhos para fazer um novo recorde antes de chegar perto do meio da sessão.
USD / CHF aumenta à medida que a disparidade da política monetária entre os EUA e a Suíça cresce.
Na véspera do relatório dos trabalhos de sexta-feira nos EUA, o par de moedas dólar / franco suíço (USD / CHF) tem estado entre os pares de dólar mais fortes. Isto deveu-se principalmente a um franco suíço em queda, em vez de um dólar americano em ralis. De fato, o EUR / CHF e o GBP / CHF têm subido, enquanto o CHF / JPY vem caindo nos últimos meses. O franco suíço continua fundamentalmente fraco devido a um banco central dovish.
A carnificina do EUR / CAD racha a linha de tendência clara.
É um tipo de "King CAD" no mercado de FX, com o loonie se unindo contra todos os seus principais rivais. O catalisador próximo é (espere por isso) as últimas notícias sobre o Acordo de Livre Comércio da América do Norte (NAFTA).
Por que o relacionamento negativo dólar / bruto mudou.
Muitas vezes é uma questão complicada, e quando se trata de mercados, o "porquê" muitas vezes fica em segundo plano em relação ao "o quê" que está acontecendo e "como" deve ser negociado. No entanto, pode valer a pena entender por que ocorre uma relação de mercado, para que você possa se ajustar mais rapidamente do que a concorrência quando a relação muda inevitavelmente.
Diário forex resumo: Euro, yen, Aussie & amp; CAD.
Esta foi uma sessão de monstros para o Euro ganhando quase um centavo. O movimento começou cedo nesta manhã, quando o PIB francês superou as expectativas e aumentou a pressão sobre os comentários agressivos do presidente do Bundesbank alemão, Weidmann. O iene tomou banho hoje depois de cruzar a marca de .9600 na sexta-feira pela primeira vez desde novembro de 2016. O dólar certamente não foi culpado hoje, já que o iene foi a única moeda a realmente perder terreno contra ele.
Diário forex resumo: Euro, yen, Aussie & amp; CAD.
Diário forex resumo: Euro, yen, Aussie & amp; CAD.
O Federal Reserve aumentou as taxas um quarto de ponto, como esperado esta tarde. No entanto, eles continuaram a projetar apenas três subidas este ano, enquanto muitos especularam que um quarto será adicionado. Citando uma perspectiva econômica mais forte em face dos sombrios dados de fevereiro, eles aumentaram sua previsão de crescimento para 2018 e 2019. O Fed aumentou as projeções de aumento de taxa no próximo ano para três de dois. Mas ainda assim, o dólar americano foi martelado. Temos discutido o impacto da percepção há meses.
Diário forex resumo: Euro, yen, Aussie & amp; CAD.
O dólar se recuperou hoje contra todas as principais moedas, à medida que a reunião do FOMC de amanhã entra em foco. Esta ação de preço começou cedo com leituras precárias da inflação do Reino Unido e dados de Sentimento da Alemanha e da Zona Euro.
Sterling desliza sobre a desaceleração da inflação.
A libra esterlina imediatamente enfraqueceu em relação ao dólar na manhã de terça-feira, depois que a inflação do Reino Unido caiu mais que o esperado em fevereiro. A inflação dos preços ao consumidor recuou para uma baixa de 7 meses, para 2,7% em fevereiro, ante 3% em janeiro, quando o impacto do selloff da Sterling's Brexit enfraqueceu.
Libra recupera antes da semana ocupada.
Se a libra esterlina subisse na semana que vem, sua melhor aposta seria contra uma moeda mais fraca, como o franco suíço. O franco enfraqueceu-se um pouco ontem depois que o Banco Nacional Suíço reiterou seu compromisso em manter a política monetária extremamente solta e intervir no mercado cambial, se necessário, para enfraquecer a moeda. Assim, o par de moedas libra esterlina / franco suíço (GBP / CHF) permanece fundamentalmente suportado.

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Perspectiva regional de e-FX no Oriente Médio.
O comércio eletrônico de câmbio teve um início lento no Oriente Médio. Hoje em dia, a ocupação está bem avançada em alguns setores e alguns países, embora a falta de infraestrutura, os graus variados de regulamentação e os distúrbios civis e políticos locais mostrem um quadro heterogêneo na região como um todo.
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Perspectiva regional de e-FX no Oriente Médio.
O comércio eletrônico de câmbio teve um início lento no Oriente Médio. Hoje em dia, a ocupação está bem avançada em alguns setores e alguns países, embora a falta de infraestrutura, os graus variados de regulamentação e os distúrbios civis e políticos locais mostrem um quadro heterogêneo na região como um todo.
Por Richard Willsher
O comércio eletrônico de câmbio teve um início lento no Oriente Médio. Hoje em dia, a ocupação está bem avançada em alguns setores e alguns países, embora a falta de infraestrutura, os graus variados de regulamentação e os distúrbios civis e políticos locais mostrem um quadro heterogêneo na região como um todo.
Se definirmos "Oriente Médio", o rdquo; para incluir toda a península arábica que abrange o Golfo, o Irã, o Iraque, a Síria, a Jordânia, o Líbano, a Turquia, Israel e o Egito, é uma região com enormes necessidades de câmbio estrangeiro. De um lado, as receitas em grande parte denominadas em dólares dos Estados Unidos pela venda de hidrocarbonetos, por outro lado, as contas de importação de bens manufaturados e desenvolvimentos de infra-estrutura produzem enorme liquidez em moeda estrangeira, enquanto os requisitos de moeda local também precisam ser atendidos. Somando-se a esses requisitos de comércio, o apetite por comércio e especulação cambial e a região do Oriente Médio deve se registrar com mais destaque do que ele. A mais recente Pesquisa Trienal sobre Bancos Centrais do Banco de Compensações Internacionais agrupa o Oriente Médio e a África em uma só e a última entre todas as regiões pelo volume médio diário de transações spot em abril de 2010, com apenas US $ 13 bilhões de um total de US $ 1,8 trilhão. Em todas as categorias de produtos, a região responde por US $ 41 bilhões de US $ 5 trilhões globalmente.
No entanto, olhe abaixo da superfície para a economia de países individuais e estatísticas da Agência Internacional de Energia mostram que em 2009 a Arábia Saudita era o maior exportador líquido mundial de petróleo bruto com o Irã, Emirados Árabes Unidos, Iraque e Kuwait. os dez primeiros. Da mesma forma, o Qatar está em terceiro lugar na tabela dos exportadores líquidos de gás natural. Esses países & rsquo; os fluxos contínuos de moeda parecem garantidos, dadas as suas vastas reservas e o aumento inexorável do custo da energia. Além disso, as empresas que operam na região, especialmente no setor de petróleo e gás, logística, transporte e serviços financeiros, são líderes mundiais com um entendimento sofisticado da gestão de tesouraria, incluindo o uso de operações de câmbio e ferramentas eletrônicas de administração e negociação.
O que rapidamente se torna claro, no entanto, é a natureza fragmentada e desigual do comércio electrónico FX na região e da infra-estrutura técnica e legislativa que o facilita país a país. Generalizações sobre a região têm que dar lugar a.
especificidades de países e modelos de negócios e produtos voltados para grupos de clientes segmentados.
Clientes de compras e modelos de negócios.
& ldquo; Temos um modelo de cobertura dupla & rdquo; explica o chefe de vendas de câmbio do CEEMEA Amine Berraoui, do Deutsche Bank. & ldquo; Como banco, cobrimos tanto instituições financeiras como empresas. Nossa franquia corporativa segue nossa pegada e geográfica.
presença. Temos uma licença completa na DIFC em Dubai como um banco offshore. Temos uma licença onshore em Abu Dhabi. Nós temos uma presença no Qatar e uma presença local na Arábia Saudita. O resto dos países não achamos necessário ter uma presença local e cobrirmos Londres. Nossos mercados mais fortes na região são Emirados Árabes Unidos e Arábia Saudita.
O colega de Barraoui, Robert Wade, que é diretor de vendas corporativas de FX eletrônico para EMEA & amp; Américas, diz que a plataforma Autobahn do banco é uma franquia em expansão. & ldquo; À medida que o nível de sofisticação de nossos clientes aumenta, eles estão fazendo um uso maior da Autobahn. Isso se aplica à maior das empresas locais. Eles estão procurando por um fluxo de trabalho simples e fácil. Todo o resto é coberto pela nossa equipe de voz. Mas o interesse em eletrônicos está crescendo de forma absoluta.
& ldquo; O Oriente Médio é uma região onde você tem alguns dos maiores fundos soberanos e alguns bancos centrais com significativa liquidez, & rdquo; adiciona Barraoui. "Eles estão procurando cada vez mais serviços, especialmente aqueles que são entregues eletronicamente, então vejo nossa plataforma FX, outras plataformas e outros serviços eletrônicos bem posicionados para o crescimento".
Essa visão é ecoada por Sandip Sen, do Citi, chefe de vendas eletrônicas do CEEMEA. & ldquo; A maioria das empresas estatais, bem como empresas corporativas, adotaram a negociação eletrônica nos últimos anos principalmente para exposições cambiais em moeda estrangeira. A constante demanda por melhor execução, aliada a serviços integrados de pré e pós-negociação, reforça a necessidade e, consequentemente, o crescimento no uso de canais eletrônicos de negociação ”.
Tod Van Name, diretor global da Bloomberg Foreign Exchange, diz que o Oriente Médio como um todo ficou para trás na adoção do e-trading, mas isso está mudando rapidamente. & ldquo; Muitas grandes corporações da região estão analisando seus sistemas de gerenciamento de tesouraria e analisando como o comércio eletrônico pode abordar questões como a melhor execução e as trilhas de auditoria. Os tesoureiros corporativos estão se voltando para plataformas de vários bancos, como a Bloomberg FXGO, para gerenciar seu risco cambial, fazer solicitações de cotações e executar suas operações de câmbio, minimizando assim o processamento manual de transações.
Isso está forçando a concorrência em provedores de plataformas forex. Van Name acrescenta: “Os clientes buy-side institucionais no Oriente Médio têm relações bancárias com bancos locais e internacionais, que atendem.
para clientes & rsquo; Exigências de FX por diferentes meios. Enquanto a maioria dos negócios de FX realizados com bancos locais é executada tradicionalmente, por telefone, os grandes bancos internacionais estão respondendo à crescente demanda do mercado por plataformas eletrônicas e serviços de comércio eletrônico. Essa mudança em direção ao e-trading está levando os maiores bancos locais a investir em ofertas de e-commerce, e esperamos vê-los começar a fornecer suas próprias soluções de e-trading para seus clientes buy-side.
Essa visão é corroborada por Johnny Nielsen, chefe de negócios institucionais na região do Oriente Médio no Saxo Bank. & ldquo; Observamos um forte interesse na relação com a nossa solução White Label, na verdade da maior parte da região do Oriente Médio. Vimos recentemente um crescente interesse por mercados não domésticos, em particular por ações internacionais, futuros e FX, todos disponíveis para negociação através de nossas premiadas plataformas em uma única conta ”.
& ldquo; Nossas soluções White Label também estão recebendo cada vez mais atenção de usuários finais não varejistas, incluindo fundos, bancos privados e bancos de operações bancárias & rdquo; Nielsen continua. & ldquo; Isto é ainda suportado pelos nossos investimentos no Saxo Direct & ndash; uma oferta de flexibilidade (API) (interface de programação de aplicativos) feita sob medida para corretores de varejo, gerentes de ativos e fundos de hedge. Todos os clientes buscam essencialmente ingredientes semelhantes para garantir que suas necessidades comerciais sejam atendidas: transparência, execução eficiente, precificação padronizada e negociação anônima. Além disso, eles querem um serviço de qualidade de profissionais de mercado, bem como um parceiro respeitável.
"Houve uma mudança definitiva das grandes corporações e uma boa fatia do mercado interbancário em direção a provedores de multibanco, como o nosso", disse. diz Alex Johnson, gerente de vendas do Oriente Médio / África em 360T. & ldquo; O papel do tesoureiro no Oriente Médio mudou dramaticamente nos últimos anos. O tesoureiro de hoje enfrenta mais desafios e necessidades, e usa uma ampla gama de ferramentas para ajudá-lo a gerenciar a exposição e as finanças de sua empresa. Os principais requisitos, como o processamento direto (STP) eficiente para os sistemas de gerenciamento de tesouraria e os registros de auditoria de históricos de cotações, exigem negociações eletrônicas. Na 360T, nos concentramos em falar e ganhar market makers locais na plataforma, bem como nos players globais tradicionais, dando assim aos clientes uma escolha de bancos. Muitas grandes corporações parecem ter se desenvolvido muito rapidamente nos últimos dois anos a este respeito, ultrapassando alguns estágios evolutivos que empresas européias ou americanas passaram em sua jornada. Eles até pularam para usar a ferramenta intragrupo, que permite que uma tesouraria central gerencie, controle e execute solicitações de subsidiárias satélites.
Regulação, relacionamentos e lei Shariya.
Assim, os grandes setores corporativos e institucionais em toda a região representam um mercado significativo e crescente. Isso está sendo resolvido pelos principais bancos internacionais e provedores de plataformas e os bancos locais estão se recuperando, bem conscientes de que os serviços prestados eletronicamente são o caminho a seguir e precisam competir. No entanto, ninguém está dizendo que a região é fácil para construir e-business, não só por causa das restrições e regulação da negociação forex.
& ldquo; A coisa mais importante sobre a negociação forex no momento é a regulamentação, & rdquo; explica Ahmad Khatib, CEO da Amana Capital, com sede em Beirute. & ldquo; A regulação não é uniforme. Alguns países têm pouca ou nenhuma regulamentação, outros impõem restrições.
por exemplo, tem um setor financeiro muito forte historicamente e avançou na introdução de um regime regulatório para investidores estrangeiros e regionais. Os Emirados Árabes Unidos introduziram o licenciamento para operações de câmbio no exterior. Então a Arábia Saudita tem o maior número de comerciantes potenciais, mas.
sem licenciamento. Por isso, muitos clientes trabalham on-line. & Rdquo;
Acrescente a isso a abordagem tradicional e cautelosa do Oriente Médio para negócios baseada em relacionamentos e a necessidade de transparência, e isso pode causar problemas tanto para lidar com marcas financeiras que podem ser bem conhecidas no Ocidente, mas não localmente e também adotando novas tecnologias que oferecem sem interação humana. Isto é particularmente verdadeiro no setor de varejo, onde a FX Solutions vem construindo seus negócios desde 2004.
& ldquo; Nós da FX Solutions reconhecemos que tudo em relação ao Oriente Médio é baseado em confiança e reputação. Linha de fundo, o relacionamento é fundamental, & rdquo; diz o CEO Michael Cairns. & ldquo; O mercado no Oriente Médio é orientado pelo relacionamento e o papel do corretor de introdução (IB) na formação desses relacionamentos não pode.
subestimado. Desde o início, decidimos utilizar a rede IB e nossos parceiros IB contribuíram para nosso crescimento e sucesso no setor de varejo. Eles são a nossa força de vendas no chão em sua maior parte. Por exemplo & rdquo ;, ele continua & ldquo;
cliente típico vai visitar o site de uma empresa, mas depois vai e fala com alguém que tenha feito negócios com essa empresa. Esse alguém é geralmente um IB. É a palavra da boca, é a validação. Blogs e fóruns são muito importantes, a percepção é tudo. As pessoas estão preocupadas com a segurança de seus fundos e não podem se inscrever on-line sem fazer uma verificação de antecedentes. Se eles conhecem alguém que nos conhece, que nos recomenda, eles se sentem mais à vontade e provavelmente abrirão uma conta. Isso ajuda a FX Solutions a trabalhar arduamente para construir uma marca forte e a.
reputação baseada na inovação, na justiça e na transparência total.
Cairns acrescenta: “A FX Solutions teve um sucesso particular na Arábia Saudita, mas foi, e é, importante construir lentamente a confiança entre os reguladores, a fim de ganhar credibilidade. Na Arábia Saudita, a autoridade monetária é compreensivelmente muito cautelosa em relação a novos mercados. Há um intenso escrutínio das práticas de negócios e dos participantes com vistas a proteger seus cidadãos e garantir que suas leis e regulamentos sejam mantidos. O ônus recai sobre nós para convencer as autoridades de que merecemos sua confiança. Isso em si não é uma coisa ruim. Um histórico de conformidade regulatória é de vital importância nesse aspecto e ajuda a apontar nosso histórico nos EUA, onde estamos registrados na CFTC e em um membro da NFA, e no Reino Unido (FSA). A Arábia Saudita continua muito estrita financeiramente e a barreira à entrada é alta. Além de qualquer outra coisa, uma empresa exige mais capital regulatório para se registrar na Arábia Saudita do que se registrar nos EUA. Não é só o dinheiro, os relacionamentos são importantes também. Dito isto, vimos sinais encorajadores nos últimos anos de que o mercado forex de varejo talvez esteja se abrindo e ganhando aceitação. A FX Solutions participou de várias feiras onde o interesse em nosso produto era alto. Talvez a porta, apesar de não estar totalmente aberta, esteja ligeiramente entreaberta & rdquo;
Embora a percepção comum possa ser que os princípios islâmicos ou Shariya restringem o desenvolvimento do comércio forex na região, este não é um quadro consistente e está cercado de incerteza e falta de clareza. Existem várias abordagens para esse problema.
"A Shariya em geral não fornece um conjunto de regras claras que regem a negociação forex", diz Ahmad Khatib, da Amana Capital. & ldquo; Forex é relativamente novo e há muita demanda de clientes. Que discussão há, é sobre swaps e produtos de taxa de juros. Quanto à especulação, qualquer coisa realizada sem o conhecimento e entendimento adequados seria especulativa e necessariamente infringiria os princípios do Shariya sobre o jogo. É por isso que oferecemos serviços educacionais ao lado de nossos produtos e serviços técnicos. & Rdquo;
A FX Solutions tem consistentemente adotado uma estratégia cautelosa e respeitosa onde Shariya está preocupada. & ldquo; Com o passar dos anos, conversamos com muitos dos nossos parceiros da região que, por acaso, são estudiosos da religião e buscamos seus conselhos sobre a melhor maneira de abordar esse mercado, & rdquo; diz Michael Cairns. & ldquo; Essas discussões, por exemplo, levaram ao nosso fornecimento de "isenção de juros & rdquo; contas para clientes na região. Embora tenhamos feito nossa devida diligência para fornecer aos mercados compatíveis com Shariya, estamos cientes de que nossos clientes também realizaram suas próprias diligências. Muitos dos nossos IBs fornecem ferramentas on-line para ajudar os clientes a esse respeito.
& ldquo; O aspecto eletrônico do comércio compatível com Shariya ainda é incipiente, & rdquo; diz Tod Van Nome da Bloomberg Foreign Exchange, “porque os participantes do mercado não têm a escala e a pegada para garantir o investimento na tecnologia necessária para oferecer preços FX e de depósito executável. A Bloomberg oferece uma ampla gama de informações, notícias e dados sobre os mercados de capitais islâmicos, e está trabalhando na integração de produtos compatíveis com Shariya, como os depósitos islâmicos, na plataforma de negociação multi-banco da Bloomberg. Isso permitirá que os participantes do mercado realizem negócios em uma plataforma eletrônica sem os investimentos financeiros e de recursos que normalmente precisariam fazer. ”
& ldquo; os produtos Shariya são, por definição, uma área muito importante, & rdquo; explica Nielsen, da Saxo, “no entanto, a negociação de FX é mais do que uma questão de taxas de juros. Aspectos como negociação de margem, curto-circuito, etc também devem ser levados em consideração. Qualquer introdução de produtos compatíveis com Shariya será em estreita cooperação com organismos que garantam a conformidade da oferta. Em outros instrumentos, como as ações, recentemente oferecemos aos clientes a possibilidade de analisar as ações para monitorar sua conformidade. Este recurso foi muito bem recebido e indicou o forte interesse por tais produtos.
Enquanto isso, a 360T também adotou uma abordagem pró-ativa, "Lançamos um Portal de Negociação Multibanco Islâmico para a FX Spot, oferecendo aos bancos e corporações islâmicos a oportunidade de abraçar o comércio eletrônico, ao mesmo tempo em que aderimos aos princípios Shariya". diz Alex Johnson.
& ldquo; Fomos os primeiros e, até agora, o único provedor de plataforma multibanco a oferecer uma plataforma islâmica. & rdquo;
Conversar com pessoas ativas no fornecimento de serviços de negociação FX na região do Oriente Médio também produz uma abordagem mais pragmática para negociações aprovadas pelo Shariya. Em essência, os clientes, particularmente no lado do varejo, para quem os princípios islâmicos são importantes, escolherão produtos e estruturas aprovados ou não serão negociados. Outros que estão menos preocupados usarão plataformas disponíveis e talvez centros offshore, como Chipre, para negociar como desejarem. Comerciantes e investidores permitirão que a consciência seja o seu guia. O que está claro é que os clientes de varejo em toda a região são cada vez mais atraídos pela simplicidade e, talvez, pela emoção de negociar forex por conta própria por meios eletrônicos.
& ldquo; Comerciantes de varejo / dia são um grupo que está se expandindo rapidamente depois de ter começado tarde & rdquo; diz Ahmad Khatib na Amana Capital. & ldquo; Agora, eles estão procurando a capacidade de negociação móvel por meio de telefones e tablets que não exigem um tamanho mínimo de conta. Ao contrário dos bancos internacionais, os bancos regionais ainda não aceitaram isso.
Essa visão é ecoada pela FX Solutions & rsquo; Cairns, que também observa que os tipos de clientes diferem significativamente de mercado para mercado. Comerciantes de varejo na Arábia Saudita tendem a ser uma mistura de indivíduos e empresários de sucesso, alguns extremamente ricos. Os tamanhos das contas tendem a ser maiores do que a norma, o que, por sua vez, leva a um tamanho maior de tickets. No Egito, onde a negociação é muito ativa, a base de clientes normalmente inclui mais daqueles que começam a negociar com tamanhos mínimos de contas de US $ 250 a US $ 1.000 utilizando FX Solutions & rsquo; alavancagem disponível de até 400: 1. & ldquo; Verificamos que o Egipto tem mais contas de capital inferior, mas com muitos comerciantes. As contas podem ser menores, mas tendem a ser mais ativas. Na Arábia Saudita, em contraste, temos clientes que estão negociando posições muito grandes, algumas provavelmente maiores que os bancos & ndash; você está falando & euro; 50m - & euro; 100m em um clipe, & rdquo; Cairns explica.
& ldquo; Na Arábia Saudita & rdquo; ele continua, "há uma tremenda busca por conhecimento e uma adoção da mais recente tecnologia". Eles estão muito interessados ​​em análises técnicas e gostam de usar gráficos para ajudar em suas decisões de negociação. Os EAU, embora aparentemente mais ocidentalizados, não produzem um grande número de pessoas que querem negociar agora, mas estamos ativamente direcionando essa região. Com o Líbano, por outro lado, a questão é mais uma das restrições do governo (EUA e Reino Unido) em aceitar clientes daquele país, possivelmente devido à sua proximidade com a Síria. Somos obrigados pelas leis e regulamentos, não apenas dos países em que operamos, mas dos países em que estamos registrados e regulamentados. Se você olhar para a Turquia, você tem uma mentalidade de negociação semelhante à do Egito ou da Arábia Saudita, mas o governo tem reprimido empresas que operam sem uma presença física na Turquia e sem registro. Eles tornaram o registro extremamente difícil e caro. As coisas podem mudar drasticamente, mas nos países onde somos mais aceitos, parece haver uma disposição para abraçar o que fazemos. Eles preferem.
fazer parte dele e regulá-lo, em vez de forçá-lo a sair da existência com restrições.
Outra razão para a popularidade do comércio varejista de forex tem sido decepção com outras classes de ativos. "Os comerciantes e investidores de varejo não viram grandes retornos dos mercados acionários locais nos últimos anos", disse. observa Michael Rautmann, chefe de marketplaces, FX & FI para a África do Oriente Médio e Rússia, Thomson Reuters. "Isso levou a um aumento no número de participantes no mercado de câmbio e, como muitos desses investidores já estão acostumados a usar plataformas eletrônicas para negociar ações, a mudança para o câmbio é relativamente simples".
Além disso, a Tod Van Name da Bloomberg acrescenta que há um grande apetite por risco no mercado de varejo do Oriente Médio, onde os operadores que operam em diferentes fusos horários esperam que seus provedores de FX ofereçam negociações 24 horas sem perda de liquidez. No entanto, embora o setor de varejo negocie em grande parte os principais pares de moedas, existe certo apetite por vínculos com outras classes de ativos, como commodities, futuros e índices de ações.
No outro extremo da escala, o desenvolvimento de serviços de atacado, como corretagem de primeira linha e crescimento em operações algorítmicas e de alta frequência de alta performance, parece não ter atingido seu ponto de inflexão ainda. "O comércio algorítmico e programático tornou-se extremamente popular globalmente, mas menos regionalmente do que os volumes ainda relativamente baixos", disse. diz Rautmann. & ldquo; No entanto, observamos uma mudança para a agregação de luidez & ndash; ferramentas, como o Thompson Reuters Dealing Aggregator e FXall, que permitem que os operadores de FX vejam todas as várias fontes de liquidez em uma única tela. À medida que a agregação ganha popularidade na região, a liquidez geral aumentará, os comerciantes começarão a incorporar a agregação em suas estratégias, e isso incentivará mais fabricantes de preço a participar do mercado e, portanto, impulsionar o comércio algorítmico no futuro. O crédito bilateral também tem sido um problema para instituições financeiras de médio a menor porte no Golfo, o que torna as ofertas de PB mais atraentes ”.
Van Nome da Bloomberg acredita que esses mercados estão bem marcados para o crescimento futuro. “Em um mercado global onde as instituições financeiras ocidentais continuam sofrendo com empréstimos reduzidos, inadimplência, negociações fraudulentas e contrações econômicas, muitas empresas estão buscando relações comerciais com bancos do Oriente Médio que oferecem posições e classificações de crédito superiores. Essas instituições estão aproveitando essas mudanças globais e estabelecendo serviços especializados, como as divisões de PB. É provável que, num futuro próximo, surjam novos atores regionais oferecendo serviços PB e HFT para o mercado de câmbio, & rdquo; ele conclui.
& ldquo; Existe algum interesse pela negociação de algo FX e isto parece estar a crescer mais recentemente, & rdquo; ecoa a Eugenia Hanoune, da Citi, chefe de vendas eletrônicas da EMEA. & ldquo; HFT não é tão prevalente no Oriente Médio como nos mercados ocidentais. À medida que os volumes e o tempo de processamento das transações aumentam, as conversas sobre a Prime Brokerage parecem estar acontecendo cada vez mais. Há um sentimento de que muitas empresas necessitarão de serviços Prime Brokerage no futuro.
Todos com quem falamos em nossa pesquisa para essa perspectiva regional estavam otimistas sobre a taxa em que o interesse em produtos forex e sua entrega eletrônica estava crescendo. Havia otimismo geral sobre como o Oriente Médio ainda tinha alguma distância a percorrer antes de cumprir seu potencial, mas há alguns ventos contrários. Algumas delas se originam na própria região e outras além de suas costas.
Dos próprios países, surgem receios quanto à estabilidade política. A Síria, o Iraque, o Irã, o Bahrein e o Egito são todos assunto de transtornos ou circunstâncias cujos resultados são incertos. O Líbano, embora estável em si e um dos negócios favoritos e centro financeiro para o Oriente Médio, também viu uma superlotação inicial de tensão do conflito na Síria, que as autoridades libanesas estiveram ansiosas para estancar e reprimir.
Vários comentaristas sugeriram que a turbulência no Bahrein prejudicou seu potencial de crescimento como centro financeiro e bancário líder do Golfo. Outros sugeriram que a crise financeira ligada ao crash da propriedade em Dubai pode tê-la danificado também, ainda que temporariamente.
Enquanto isso, países como Jordânia, Líbano e Israel (veja o painel), entre outros, buscaram introduzir maior regulação nos mercados financeiros em geral, incluindo forex e derivativos de balcão (OTC), os ventos da mudança regulatória muitas vezes foram soprados do exterior .
"Há incerteza quanto ao impacto que a regulamentação, particularmente em relação ao comércio de derivativos OTC recomendado para os países do G20, tais como aqueles exigidos pelo Dodd Frank Act nos EUA," diz Thomson Reuters & rsquo; Michael Rautmann “Essas reformas do G20 visam mudar o fluxo de trabalho de derivativos de balcão, aumentar a transparência e criar uma maior supervisão dos bancos. Com a Arábia Saudita fazendo parte do G20 e com o Banco Central dos EAU aconselhando os bancos regionais a cumprirem os requisitos de liquidez até 2013, em preparação para Basileia III, o impacto regulatório sobre os mercados regionais não pode ser desconsiderado.
Muitas instituições financeiras regionais precisam não apenas entender como a regulamentação local afetará sua participação nos mercados de câmbio, mas também como isso afeta suas relações com instituições financeiras com as quais negociam com base na Europa ou nos EUA. Pode não haver nenhuma regulamentação local que rege a negociação de derivativos de balcão em um país específico, no entanto, a contraparte internacional de um banco pode ser forçada pela legislação a negociar em uma plataforma regulada.
Isso não só cria complicações para as instituições de serviços financeiros, mas também os provedores de ferramentas de negociação para essas organizações. Por essa razão, a Thomson Reuters tem trabalhado em estreita colaboração com legisladores e reguladores para garantir que entendemos totalmente as metas políticas e as alterações propostas, e registraremos nosso produto Thomson Reuters Dealing como um serviço regulamentado na Europa (F) e nos EUA (SEF ). & rdquo;
Um vento contrário adicional é o estado da infraestrutura de comunicações em algumas regiões geográficas. "No Oriente Médio e na África, os problemas de conectividade ainda estão lá", de acordo com Robert Wade da Deutsche. & ldquo; varia de país para país. Onde a infraestrutura não é tão boa, muitas vezes você vê clientes e bancos investindo em linhas dedicadas, linhas alugadas etc. para fornecer conectividade. Com o tempo, à medida que os governos continuarem a investir mais em sua infraestrutura, isso apenas aumentará a capacidade disponível para os clientes em toda a região. A maioria dos grandes atores institucionais teria linhas dedicadas. Os mais afetados seriam corporações de médio porte ou locais. Temos infraestrutura, recursos e pessoas no Oriente Médio. Estamos investindo em nossa plataforma globalmente. Acreditamos que há boas perspectivas de crescimento na região em geral, particularmente nos Emirados Árabes Unidos e na Arábia Saudita.
& ldquo; A infra-estrutura de comunicação nacional terá um papel crítico na definição do mercado, & rdquo; acredita que o nome de Tod Van da Bloomberg, "criar pontos de acesso naturais & ldquo; & rdquo; e & ldquo; notspots & rdquo; à medida que a lacuna se alarga entre países com conexões de Internet rápidas e confiáveis ​​e aquelas sem. Aqueles com boa infra-estrutura incluem os estados do Golfo, como Dubai, Abu Dhabi e Qatar, enquanto por consenso comum a Arábia Saudita está fazendo grandes esforços para melhorar suas capacidades de telecomunicações.
Crescimento e desenvolvimento de produtos.
Na parte de trás disso, a gama de produtos oferecidos em toda a região deve crescer significativamente de ponto de baunilha e avançar entre os principais. Johnny Nielsen, da Saxo, diz que vê novas oportunidades de crescimento nas principais moedas (FX Spot), bem como metais spot e futuros de petróleo. & ldquo; Reconhecemos novas oportunidades de crescimento em outras classes de ativos, como commodities de CFD e opções de contrato. Nossa solução White Label permite que os usuários finais tragam seus portfólios existentes para a plataforma e expandam continuamente suas atividades comerciais para outras classes de ativos. Tendo uma ampla base de clientes de marca branca no Oriente Médio, UE, APAC e Europa Oriental, a negociação de câmbio à vista e disponibilidade de moeda sob medida é essencial. Expandindo nossos exóticos e metais preciosos oferecendo como AED, BHD, QAR, KWD, SAR, OMR, JOD, RUB, HUF, RON, LTL, PLN, CZK, MXN, ZAR, HKD, XAU e XAG nos ajuda a atender nossos clientes & rsquo; necessidades de produtos localizados. Com mais de 160 cruzamentos, incluindo todos os principais, metais preciosos e exóticos regionais, os serviços de distribuição de fluidez do Saxo Bank geram EUR 2,160 bilhões em volumes anuais de câmbio.
Até agora, a única bolsa de câmbio que oferece futuros em moeda no Oriente Médio é o Dubai Gold & amp; Commodities Exchange (DGCX), onde, de acordo com Alexson, da 360T, os volumes são escassos. & ldquo; A maioria das negociações é OTC e predominantemente em produtos de baunilha. Algumas corporações mais sofisticadas estão envolvidas em opções estruturadas, mas isso não é de forma alguma um grande mercado ”. No entanto, com o crescente poder e sofisticação das grandes corporações, bancos centrais e fundos soberanos da região, estes poderiam ser definidos para o crescimento.
Em toda a região, não há dúvidas de que podemos esperar mais desenvolvimento de produtos forex em plataformas eletrônicas. Uma questão que surge constantemente, especialmente à luz de mudanças regulatórias, restrições locais e instabilidade política é a medida em que as negociações geradas por clientes do Oriente Médio de todas as formas e tamanhos, de grandes corporações a varejistas, permanecerão em terra ou conduzidas através de grandes instituições financeiras globais. centros como Londres ou Nova York ou centros offshore como Chipre. As capacidades de negociação eletrônica podem facilitar esse processo e eliminam a necessidade de "regionalização". de negociação. Isso, no entanto, é tão difícil de quantificar quanto as autoridades locais controlarem, e talvez seja o assunto de outra história.
Perspectiva regional de e-FX na América Latina.
O comércio global, a política local e a regulamentação são os fatores que mais influenciam o comércio eletrônico de moedas estrangeiras na América Latina, enquanto, ao sul da fronteira dos EUA, o mercado é tão rico e diversificado quanto os países que compõem a região.
Veja a versão em texto desta publicação do cliente.
Comércio global, política local e regulação são os.
fatores que mais influenciam o estrangeiro eletrônico.
comércio de câmbio na América Latina, ao sul de.
Na fronteira dos EUA, o mercado é tão rico e diversificado.
como os países que compõem a região.
De muitas maneiras, o México é o modelo. O.
O peso mexicano é agora o décimo quarto mais negociado.
currency, according to the most recent Bank for.
International Settlements Triennial Central Bank.
Survey. Its share of average daily turnover in global.
foreign exchange markets in April 2010 stood at.
1.3%, so while it is far from being a major currency,
it does register alongside the Norwegian krone.
and ahead of the Indian rupee, Russian rouble and.
Chinese renminbi. Mexico leads the Latin American.
pack, and is the biggest of the “big five” followed by.
Brazil, Chile, Colombia and Peru. Mexico leads not.
only in terms of size of turnover, but as a country.
that over the last three decades has been through the.
mill of indebtedness, default and rehabilitation with.
the most developed nations’ financial community.
and then full currency liberalisation with.
membership of the wealthier countries.
club, the Organisation of Economic.
Co-operation and Development.
(OECD). It is a path that other.
Latin countries have yet to.
follow to its end.
Lessons from Mexico.
“Mexico’s presence within.
the North American Free.
Trade Association (NAFTA)
definitely opened things up,”
explains Simon Jones head of FX.
e-trading at Citi. “We treat Mexico.
just as we would treat Swiss francs or.
“Mexico is in many ways a developed.
centre. I don’t think we can call Mexico an.
emerging market anymore,” says Matt O’Hara,
senior vice president and global head of business.
operations at Thomson Reuters. “It’s an emerged and.
developed centre. They have been faster adopters of.
technology in order to enable their connectivity and.
internationalisation. Thomson Reuters worked with.
the Mexican authorities to help them meet their.
internationalisation goals. We helped them do that.
with our matching service, our interbank electronic.
brokerage platform, which if you fast-forward to the.
present day is now seeing a significant amount of.
global luidity. We are considered to be the primary.
pool of luidity and the reference rate for the.
Mexican peso. Around 80% of all Mexican volume is.
traded outside Mexico which shows the power of the.
forex market when a domestic community that was.
previously closed, opens up and connects to the global.
market place. It has grown hugely and is significantly.
traded in places like London and New York.”
That said, even in Mexico, local regulations can seem.
cumbersome if you are used to market conditions in.
Europe or the US. For this reason, says Michael Bernal,
sales director for Latin America at FXall, multibank.
platforms have additional appeal. “It is not only for.
transparency and pricing that multibank platforms are.
used, but also for their pre - and post-trade execution.
capabilities with end-to-end processing and connectivity.
to corporate treasury management systems. Este.
enables them to reduce or eliminate manual interface.
in the processing of the transactions. For example the.
“know your customer” regulations in Mexico are quite.
different than they are in the US. You actually have to.
visit the customer at their place of business as part of.
the process” This is a theme that recurs again and again.
when you examine forex trading conditions throughout.
the LATAM region.
If Mexico is the role model, it is Brazil that those.
inside the Latin American theatre and in financial.
markets worldwide are watching most attentively.
The size of its economy, the power of its wealth.
generation capacity, its rich reserves of natural.
resources and agricultural production and its booming.
international trade relations, particularly with China,
point to a market that offers massive opportunities for.
negociação de câmbio. That the bulk of this will in turn migrate to electronic transacting seems inevitable.
and indeed the only practical way forward that can.
efficiently handle demand. However, the Brazilian.
monetary authorities are fully alive to the risks they.
face in what they term “currency wars.”
“Brazil is cautious because of the demand for inflow.
of capital,” says FXall’s Michael Bernal. “Brazil does.
not want the Real to appreciate so much that the.
currency becomes too strong. Over the next five to.
ten years regulation will slowly change to allow Brazil’s.
own internal market to trade more freely but in the.
meantime regulation is protecting the economy from.
Which is by no means the same thing as saying they.
are not open to ideas and progressive in their adoption.
“Both Brazil and Chile are set to see further growth.
in the use of electronic trading systems because these.
are countries where volumes are growing at very fast.
pace,” according to Ernesto Semedo, Sales Manager.
LATAM from 360T. “The adoption of technology is a.
necessary requirement to keep pace with the increasing.
Most people we spoke to agree with this. “Brazil.
seems to everyone an obvious growth market for eFX.
Channels,” agrees Debra Lodge, HSBC’s managing.
director and head of eFX sales and strategy for Latin.
America. “Interestingly enough, there are only three.
players, HSBC being one of them, that offer a locally.
tailored solution and we expect to see major volume.
growth over these platforms in 2012. As of yet, very.
few multilateral channels have been able to mark their.
presence in this market, mostly due to lack of local.
luidity providers and the value of bilateral relationships.
with credit worthy institutions. Over the next couple.
of years we do expect more local players to release their.
own single dealer platforms (SDPs) plus enhancements.
by major international players to their offerings to cater.
to the often complex onshore BRL market.”
Chile has long been regarded as Latin America’s.
economic model state. In particular the country’s.
revenues from the mining and sale of copper, its.
relatively small population and the richness of its.
farming and fishing industries have been for the most.
part well managed. Its US educated economists have.
established basic rules and infrastructure that place.
Chile among the top emerging market credits.
“A broad spectrum of clients in Chile have embraced.
eFX channels, market regulation is not overly.
restrictive, and we expect competitors will see this as.
an obvious target market after Mexico for both SDPs.
and multi dealer platforms (MDPs),” adds Debra.
Citi’s Simon Jones notes that while the Chilean peso.
is generally traded in the form of non-deliverable.
forwards, he adds that Chile “would be a great case.
study of a Latin America country if it opened its.
markets up for deliverability.” If and when Chilean,
and indeed Brazilian currencies will become fully.
deliverable is a moot point. But the consensus does.
seem to be driving towards greater openness and less.
regulation in due course.
Colombia and Peru.
Both smaller in terms of potential market, Colombia.
and Peru are following a similar path to Chile in.
terms of their commodity-dependent economies.
and currency pursuing an internationalising agenda.
Interestingly as Thomson Reuters’ Matt O’Hara points.
out, these markets already have a regulatory regime.
which, when viewed positively, are ahead of markets.
in Europe and United States. “Latin America is in.
many ways ahead of the game when it comes to the.
infrastructure and connectivity and the regulations,”
ele explica. “There is an OTC spot market which is.
then cleared through the local exchanges in Chile and.
Colombia for example, and they are registered to the.
superintendencias, their regulators. The same is true in.
Argentina as well.”
He adds that there has been a good deal of work done.
in countries like Colombia and Chile to overhaul their.
regulatory regimes such that their ability to embrace.
technological change and move towards open and.
transparent international trading in their currencies.
when appropriate, will be well advanced.
Meanwhile, although Peru may be further behind.
the curve than some of its bigger neighbours, its.
prospects look encouraging. “Peru presents an exciting.
opportunity for the future for eFX channels,” diz.
HSBC’s Debra Lodge. “A dual currency economy.
(USD and PEN), and as of 2011, one of the fastest.
growing economies in the world, Peru remains one.
of the largest commodities producers and exporters,
attracting investment from numerous multinational.
Drivers and products.
History plays an important role in understanding.
Latin American countries’ attitudes towards their.
currencies and to liberalising the markets in them.
There is not a country in the region that has not at.
some stage over the last three decades or so experienced.
boom and bust. Boom in commodity prices; boom in.
foreign investment; boom in currency inflows and the.
euphoria associated with each of these. However, the.
same countries have experienced political turbulence,
commodity price collapse, over-indebtedness driven by.
international banks, corruption and exodus of flight.
capital. The way in which Latin American currencies are.
regulated today in all the significant countries, with the.
exception of Mexico, needs to be viewed through this.
lens. Countries like Brazil, Chile and Colombia but also.
Argentina and Venezuela, wish to be masters of their.
own destinies rather than slaves of the international.
mercados. Only their methods of going about it and their.
political motivations may differ.
Having said this, the region’s most successful economies.
are dependent on primary industries of mining, oils and.
gas, and agriculture and livestock farming to generate.
foreign currency revenues. Hence the most important.
driver for foreign exchange trading is real trade.
“A large part of the commercial FX market in.
july 2012 e-FOREX | 63.
LATAM is driven by imports and exports,” explica.
HSBC’s Debra Lodge, “and having a good standing.
relationship with a bank is one of the determining.
factors for transacting business.”
Spot and limited maturity forward transactions meet.
the needs of most businesses. On the whole there is.
relatively little speculative foreign exchange trading –
though there is some, of which more later.
“Clients in Latin America use the same set of things.
clients in North America or Europe use,” explica.
Caio Blasco, Deutsche Bank’s director of LATAM.
e-commerce sales based in Sao Paolo. “However, e-FX.
in the region is still some steps behind as clients are.
learning about algorithmic execution. Usually, what.
differentiates them is the number of currencies they.
trade, with the caveat that most currencies traded in.
LATAM are restricted by nature (BRL, CLP, COP, etc).”
Banks such as Deutsche, Citi and HSBC, but also.
other platform providers have combined their ability.
to provide first voice but then electronic platforms.
with the ability to provide the administration that is.
generated by the need to meet local exchange control.
Citi’s Al Saeed is project manager for their cross.
asset and research portal Velocity. “To execute an.
FX transaction in these countries involves an entire.
workflow. There may be heaps of documentation to.
process and approve and very few people do that.
“Our corporate platform, FX Pulse, automates all of.
the regulatory requirements for places like Brazil. Você.
have to describe whether the underlying trade is an.
import or an export, there’s tax to be calculated. It’s.
the same in Colombia where there is a tax calculation.
of every FX transaction. In Argentina there is an entire.
workflow for collecting documentation, making sure.
everything is in order, that the FX transaction is off.
the back of genuine trade rather than speculation.
FXall’s Michael Bernal agrees with the premise of the.
importance of value added beyond facilitating trading.
“We’ve found that corporates have been driven to our.
platforms by our automated processing which eliminates.
the need to send faxes, phone or e-mail confirmations.
Instead confirmation is sent from the bank via SWIFT’s.
messaging to the corporation. This means that payments.
are made automatically.”
Against a background of the regulatory need for forex.
transactions to be linked to real trade flows, it is not.
surprising that the range of instruments beyond spot.
and forwards are relatively undeveloped. Consequently,
NDF products have grown up offshore. ICAP for.
example offers NDFs in ARS, BRL, CLP, COP and.
PEN and Thomson Reuters has supported the largest.
community of Latam and Global NDF traders on.
its Dealing platform since.
NDF’s were first introduced.
ao mercado. But this is by.
no means the whole story.
as Thomson Reuters Matt.
“The foreign exchange market.
in Brazil, for example, grew.
as a futures market, primarily traded on the BM&F market. There is a domestic spot.
market and we see that growing, but the majority of the.
luidity is in the futures market just as there is luidity.
in the NDF market offshore. So there are domestic.
capabilities in Brazil that work very well and electronic.
na natureza. Then in Chile there are domestic trading.
platforms that are for the domestic spot market which.
have relationships with the local bolsas – or exchanges.”
We will look at regulatory issues in more detail.
later, but there are two other important areas that.
are in growth phase as far as electronic capabilities.
are concerned. The first is in speculative money and.
second is in retail. These are both “emerging markets”
in their own right.
Prime brokerage and hedge funds.
“There is not a lot of movement in the G10 space at.
the moment,” says Citi’s Simon Jones. “There has been.
central bank guidance in CHF and JPY, EUR / USD.
has hovered either side of 1.30 all year, threatening.
much but delivering little. For a long while now.
our customers have been looking for other areas of.
interest. Brazil, Chile, Colombia and Peru to some.
extent, while among the deliverables, Mexico is our.
biggest pair in the emerging market space. O.
majority of the market is Asset Driven or Speculative.
flow with spot and forwards against the dollar.
accounting for the bulk of it.”
He goes on to add that where such flows are.
provided by hedge funds they are accustomed to.
using electronic trading platforms and expect them.
to be available where Latin American currencies are.
FXall’s Michael Bernal sees developments in the prime.
brokerage area. “On the prime brokerage side we are.
definitely seeing more high frequency traders (HFT)
using prime brokers for luidity and credit purposes.
We are also seeing a very careful selection process with.
regards to who HFTs are using for prime brokerage as.
they tend to concentrate their exposures with only one.
or two institutions. There has been a strong growth in.
PB business in LATAM over the last couple of years,
offered by the 5 – 10 major US and global institutions.
with a strong presence in LATAM.”
“We currently have a number of LATAM hedge.
funds based mainly in Rio de Janeiro, São Paulo and.
Santiago trading FX through our platform,” says Deutsche’s Caio Blasco. “We are experiencing decent.
growth from those clients as it is a new asset class in.
this region. In the HFT space, there are few players,
as the restricted nature of their main currencies make.
HFT challenging. At the same time we believe that.
prime brokerage is generally still under used in the.
region. The cross margin ability and netting facilities.
that an FX prime broker can offer clients can make.
execution much smoother while requiring fewer.
margin allocated to different banks.”
This view is corroborated by Joseph Conlan Global.
Head of Sales at New York-based FC Stone LLC.
which provides clients with trading and execution.
services in a range of asset classes. “Prime brokerage.
is just gaining traction in the region, allowing.
participants to trade on the best rates market-wide,
as opposed to being captive clients. HFT and algo.
trading will have an impact as more participants.
migrate to open markets and dark pools.”
Debra Lodge also notes that prime brokerage is.
significant growth area for HSBC, “Prime Brokerage.
services are beginning to emerge in Brazil, and we.
expect this business to become more prevalent with.
the local hedge fund community in the near future.
HSBC is a large organisation with deep capabilities.
in a lot of geographies and products, we aim to be.
ready with such products as and when these emerging.
markets dictate.” Her colleague Jacqueline Liau global.
head of FX prime product and service adds, “We are.
already live and servicing clients in Brazil with our.
FX prime brokerage platform and continue to expand.
our base. Local knowledge has been paramount to.
ensuring our tools and technology are adequate for.
If the smart money is just beginning to show an.
interest in LATAM and accessing it by electronic.
means, it is not surprising that the retail market seems.
to be relatively undeveloped as yet. This is also a.
market that brings with it some complexities.
“In much of Latin America the retail FX market.
is fed by remittances of emigrants, tourism and, unfortunately, illicit money from drug trafficking and.
organised crime,” says Financial Software Systems’
Leigh Ann Wolfe director of new business development.
América Latina e Caribe. “To combat some.
of the negative aspects of FX trading, authorities in.
Latin America are increasingly erecting obstacles to.
the growth of the FX market. To the extent that the.
retail FX trading market grows in Latin America,
sophisticated Latin American investors and traders will.
want all of the features that investors around the world.
expect and demand in FX trading platforms.”
Experience at Citi seems to suggest that the market.
interest also lies elsewhere as well as in pure forex.
“We do see some interest in retail trading in Brazil,”
explains Al Saeed, “but if you ask the retail providers.
where the interest has been over the last 12-18 months.
they will tell you it has been more in metals than in.
The market in platforms and technology shows plenty.
of potential according to Ernesto Semedo of 360T,
“Retail FX has been growing at a very good rate,
although in some countries the marketing and sale.
of these systems are prohibited by law. Não obstante,
interest continues to grow on the part of individuals.
with a strong interest from Brazil.”
In summary, Luis Simões Pereira Head of Retail Sales.
in Latin America for Saxo Bank says, “Retail FX.
has been developing steadily, although facing some.
challenges. The multitude of Ponzi schemes across the.
region left some scars on the investors and regulation.
is in some cases complex or unclear. Across the board.
investors are looking for information and educational.
material and as they feel more confident, we are seeing.
growing rates of adoption. The European crisis has.
also played a role as there is a growing interest in the.
development of events in the continent and a growing.
will to speculate on the European currency(ies). In any.
event, active traders have pretty much the same set.
of interests as their European counterparts – pricing,
margins and speed of execution are paramount.”
Regulation, regulation, regulation.
For all the complexities and complications of trading.
foreign exchange in LATAM, market participants.
highlight regulation as the biggest single barrier and.
opportunity to development of e-trading.
That regulation is coming from both local markets.
and developed ones is good news and bad news as.
Saxo’s Luis Simões Pereira explains, “In several Latin.
American countries, we have observed a growing.
openness in the regulatory framework towards.
the FX market. Either through specific regulation.
or tacit approval, in a number of countries, it has.
become common to trade FX as any other asset class.
However, the crisis hitting the developed countries has resurfaced some fears among the most important.
economies, that could set back the path towards a.
liberalization of the FX market.”
FXall’s Michael Bernal sees a divergence of regulation,
with some countries loosening controls while others.
are becoming more stringent. “You see relaxation.
of regulations in Brazil, then you see an increase.
in regulation in Argentina and Venezuela. Even in.
Mexico there are some regulations that are being.
placed on funds for financial reporting purposes. O.
position reporting carried out in the US or in Europe.
is now being emulated in LATAM. Esse tipo de.
regulation is more of an accumulation of information.
of the financial risks that a country’s institutions are.
facing. In places such as Argentina and Venezuela.
regulation exists for purposes of expropriation and.
government control. This sort of regulation is likely to.
impact capital flows.”
The use of electronic trading platforms and capabilities.
is increasing in response to such regulation as well to.
customer demand. Greater compliance and reporting.
demands more efficient connection from front to back.
office using up-to-date electronic tools.
However, in some ways the development of reporting.
requirements in Mexico and the move towards greater.
market transparency is waiting on the more developed.
markets to provide a lead. This is surely coming.
according to Thomson Reuters’ Matt O’Hara. “Short.
term I think the local market has to understand and.
prepare for the changes that are inevitably coming in.
o futuro. None of us know when these changes are.
going to happen or what exactly they will contain.
But we’ve got a pretty good idea of what is going to.
happen around certain OTC derivative instruments.
The paradigm is going to change. And with LATAM.
they trade with the regions and jurisdictions that are.
going to be impacted by these new regulations and so.
they need to be ready for that.”
This also impacts the rate of innovation in the region.
as a whole. “The market has had to spend a lot of time.
and money, resources and investment on making sure.
that they can continue to operate and comply with.
the new regulations,” O’Hara continues. “That means.
that the balance of innovations, especially around.
proprietary trading platforms, macro-based electronic.
trading platforms has had to slow down to make sure.
they can be compliant. That’s something that the local.
market absolutely has to understand and be working.
em. There’s a lot more education and awareness around.
and regulatory compliance to make sure that they’re.
ready. Long term, when these regulations actually come.
in there are certain instruments that we believe and.
the market understands are going to be caught up in.
these regulations. NDFs for example. That is a primary.
trading instrument and hedging tool for LATAM. E se.
NDFs have to be traded in a different way in order to.
meet these regulations then this is something that the.
local market needs to be preparing for.”
Citi’s Simon Jones says bodies of regulation such as,
Dodd Frank and MiFID that affect developing world.
currencies, as well as various localised regulations that.
are coming from Asia, will lead to price transparency.
that we haven’t seen in LATAM before. Ele diz,
“This will open up the market for more hedge fund.
involvement and will give price transparency to the.
corporate and real money community that will be.
good for business. This will happen in the next 6-18.
meses. Ultimately the liberalisation of currencies in.
the BRICS or elsewhere is an inevitability. Knowing when this will happen is very difficult. Tu es.
definitely seeing steps in Brazil and China to pave.
the way for the day when their currencies become.
deliverable as in Mexico, the United States and the.
United Kingdom etc.”
However, the process need not be that traumatic for.
LATAM countries. “There are many opportunities for.
cooperation in Latin America,” says Tod van Name,
global head of FX Products, Bloomberg LP, “including.
a new regional exchange created by the integration.
of the exchanges of Chile, Colombia and Peru into a.
single marketplace called MILA (Mercado Integrado.
Latino Americano). The Bolsa de Santiago (Chile) is.
also speaking with Brazil’s BMF Bovespa about sharing.
tecnologia. From an interbank perspective, many.
LATAM countries already trade spot over interbank.
exchange platforms. Eventually as the markets grow.
here there will be room to expand to NDFs, futures.
and options. It remains to be seen if this will be done.
via an exchange or over the counter.”
One encouraging factor is that most technology.
providers seem confident that the communications.
infrastructure is sufficiently developed throughout the.
major LATAM markets to enable increasingly rapid.
development e-trading of forex.
“Regulatory changes or not, clients throughout.
the region are beginning to warm up to the idea of.
using eFX channels to transact business,” concludes.
HSBC’s Debra Lodge. “Tailoring, but not necessarily.
personalisation, is the name of the game, we have to.
be able to support clients in a way they like to trade.
and the way the market moves, this is certainly not a -
one size fits all type exercise.”
The outstanding questions facing electronic FX.
trading in the region are very much those facing it.
in other regions of the world, including the major.
developed centres: what will regulation look like once.
the politicians and regulators have put the finishing.
touches to it? Secondly, when will new rules be put in.
Layer on top of this the history, traditions and.
requirements of local economic management and the.
LATAM picture is full of hope and opportunity while.
cautiously reaching out to the rest of the global FX.
electronic trading community. All market participants we.
spoke to were full of optimism for the promise that the.
region offers for e-trading both for them and their clients.
Regional e-FX perspective on South East Asia.
South East Asia’s increasing economic prosperity is driving growth in the region’s foreign exchange trading activity and, as Richard Willsher discovers, the regions electronic FX trading capabilities have accelerated even faster.
View the text version of this client publication.
Regional e-FX perspective on South East Asia.
The South East Asian region’s main geographical.
markets include Indonesia, Malaysia, The.
Philippines, Singapore, South Korea, Thailand.
and Vietnam. Australia, China, India and Japan are.
all influential in the regions markets but separate.
Statistics from the Bank of International Settlements.
Triennial Central Bank Survey: Report on global.
foreign exchange market activity in 2010 show that.
Singapore remains the principal regional hub. Its share.
of daily global forex market turnover remains at 5%
as compared with the previous survey but volume has.
increased from US$242 billion to US$266 billion.
Also significant is the comparable figure for Hong.
Kong, which has grown from US$181 billion in.
2007 to US$238 billion in 2010. If counted together,
Singapore and Hong Kong would account for 10% of.
daily turnover amounting to the third largest foreign.
exchange market behind the UK and the USA. Este.
indicates how important Asia has become in the FX.
Increased turnover in both centres has been aided by.
the move to electronic trading. “We have seen growth.
of anywhere between 20% and 40% year-on-year in the.
amount of foreign exchange business that is conducted.
via the electronic channels,” estimates Shankar Hari,
regional head of FX - Asia ex Japan at JP Morgan.
“Specifically in the bank space rather than among the.
corporates, as banks and financial institutions face fewer.
restrictions than corporates,” ele diz.
“South East Asia has seen a tremendous growth in.
e-trading over the past few years,” says Jamie Salamon.
Head of FICC eCommerce APAC at Royal Bank of.
Scotland, “and this is down to a variety of reasons.
First, there is much more acceptance of e-trading.
FX as a beneficial way of conducting business that.
is also complementary to traditional telephone.
o negócio. Second, there is more pricing and functional.
sophistication available via single bank and multibank.
portals that will cater for the many needs of clients.
And third, as more money comes into Asia, FX has.
become a much more attractive asset class to investors.
as some clients move away from other investment.
These trends have accelerated over the last ten years,
explains Phillip Futures’ head of foreign exchange.
Joseph Ng in Singapore, as US and European financial.
institutions have either set up or expanded their.
operations in the region. “The landscape has become.
very competitive and resources have been invested in.
awareness and education. Clients now have choices from single bank platforms to multiple bank pricing.
via electronic communications networks (ECNs) and.
multi asset class platforms to suit different needs.”
“With e-trading becoming the norm,” adds Ng, “and.
with the presence of stronger competition, prices have.
also narrowed tremendously.”
Competition and price discovery.
As an indication of the power of electronic trading.
to introduce competition and accommodate best.
pricing, the compression in bid-offer spreads has been.
dramatic, to as tight as three basis points for major.
pares de moedas. But growth in the use of electronic.
trading channels on both the buy and sell sides still.
has some way to go.
Mathew Kuppe is Managing Director at, Singapore.
based, 360T Asia Pacific Pte. Ltd., the multi-bank.
trading platform provider. 360T has 110 market.
maker customers worldwide who are the major global.
and regional banks that provide and price luidity.
through the firm’s platform. Kuppe explains that 360T.
has been in Singapore for five years and has doubled.
its turnover every year. He anticipates 80% growth in.
On the buy side the attractions for corporate.
treasurers, asset managers, hedge funds, second.
and third tier banks and broker dealers is easy to.
appreciate. “They can access luidity from a single.
source on our platform, with a single straight through.
processing (STP) with full transparency,” says Kuppe.
“Traditionally a corporate treasurer picked up the phone.
to three different banks, selected the best price, wrote.
the deal and then followed up with internal admin for.
their in-house treasury management system. Now they.
can check all the pricings of our panel banks, execute.
the deal, enter it in the treasury management system.
and complete the audit trail – all in ten seconds.”
Single bank offerings.
The major banking and securities houses may feed.
into multibank platforms such as 360T’s while at.
the same time offering their own. Saurabh Sharma,
vice president FX electronic market sales at Nomura.
says, “Our proprietary platform, Nomura Live, is.
increasingly gaining traction in the region. Our focus.
is on offering a bespoke solution to clients, be it.
developing an algorithmic toolkit or a currency basket.
to suit their specific needs.”
JP Morgan’s Morgan Direct platform is similar but.
incorporates a hybrid approach to price quotation,
accessing the firm’s in-house prices as well as those.
from the wider market. At RBS Jamie Salamon says.
that their platform, RBSM, provides clients with a.
variety of advanced tools should they want to trade.
using a Volume Weighted Average Price (VWAP)
or clients may want to use their new ‘RBS Agile™’
platform to specify automated strategies for their.
gamma hedging requirements. He adds that the buyside.
is increasingly making use of algorithms.
Other major players offering similar platforms and.
services include HSBC and Citi among others.
Meanwhile Standard Chartered, which reportedly.
has over 150 staff on the forex sales and trading.
side throughout South East Asia, now processes 80.
per cent of its deal flow in the region electronically.
Moreover it continues to offer innovative crosses.
involving more exotic Asian currencies.
Freedom from regulation.
Speaking to market practitioners in the region it.
doesn’t take long before they mention Asian currency.
of crisis 1997 – 1998. It may be a long time ago.
but the scars run deep. Things are different now.
Economies in the region have amassed large foreign.
currency reserves as well as substantial sovereign wealth funds. These enable countries like Singapore,
Malaysia, Indonesia and South Korea to both manage.
their currencies if, as earlier this year, they feel they.
have become overvalued and also to invest in foreign.
assets to protect their value against local market.
downturns. Nonetheless fear of capital flows causing.
economic stress do persist in a subliminal way.
The best example of how currencies are managed is.
the Singapore Dollar. The Monetary Authority of.
Singapore (MAS) explains the position very clearly,
“The objective of Singapore’s exchange rate policy has.
always been to promote sustained and non-inflationary.
growth for the Singapore economy. MAS manages.
the Singapore dollar against a basket of currencies of.
Singapore’s main trading partners and competitors. O.
trade-weighted exchange rate is allowed to fluctuate.
within a policy band, and where necessary, MAS.
conducts direct interventions in the foreign exchange.
market to maintain the exchange rate within this.
band. The exchange rate policy path and the band are.
regularly reviewed to ensure that they remain consistent.
with underlying economic conditions. Em formação.
pertaining to the policy band, composition of the.
currency basket, weighting system, or money market.
operations are not disclosed to the public.”
Singapore as well the other major economies in the.
region each manage their currencies and reserves.
very carefully. Informal regulation is to a significant.
degree, a fact of life. Meanwhile in Europe and North.
America no discussion of the future capabilities of.
financial markets is free of the “R” word, yet it is early.
days as far as South East Asia is concerned when it.
comes to OTC forex products.
“People are looking to see what happens in Europe.
and North America,” says JP Morgan’s Shanker Hari.
“Nobody wants to impose restrictions just for the.
heck of it. Moreover from here when we look west at.
what they do, we see that many of the problems that.
the world finds itself with were not made in South.
East Asia but in Europe and the US. People will wait and watch. No one here wants to rush into regulatory.
reforms before examining them carefully.”
Achieving SEF and OTC status.
“With APAC playing an increasingly influential role.
in the global financial markets [regulation] is a hot.
topic,” says Jamie Salamon. “We are already seeing.
clearing of non deliverable forward (NDF) products,
foreign exchange options (FXO) are moving towards.
central clearing and trading is being focused on swap.
execution facilities (SEF) or organised trading facilities.
(OTF). We will start to see the current platforms.
increasingly gearing up their e-trading capabilities to.
meet the regulatory requirements and get SEF/OTF.
status. We will also likely see more requirements for.
post-trade transactional reporting”
However Joseph Ng at Philip Futures highlighted.
that, “From US to Asia, regulatory bodies around.
the world are looking to bring more transparency.
and accountability into the derivatives market, which.
will certainly have a major impact on the overall.
FX market. Controls and transparency are well and.
good if they can be implemented reasonably without.
disrupting business flow. This will create high barriers.
to entry for investors, and possibly curb the growth.
of the industry, making the market place niche and.
opening it to only the big boys, high net worth and.
sophisticated traders. It is also foreseeable that market.
participants will move to set up business in countries.
not affected by such reforms.”
In October of this year Singapore Exchange (SGX)
launched a clearing service for FX non-deliverable.
forwards in Asian currencies. The eligible currencies.
are Chinese Renminbi (CNY), Indonesia Rupiah.
(IDR) Indian Rupee (INR), Korean Won (KRW),
Malaysian Ringgit (MYR), Philippine Peso (PHP) and.
Taiwan New Dollar (TWD).
Regulatory pressure in due course may lead to higher.
volumes and additional products such as client.
clearing. In addition if it emerges in due course that.
FX options fall within new regulatory parameters.
SGX advises that this may be added to the range of.
products and facilities that it offers. Readers can find.
further details of the SGX clearing facility in the leader.
article of this issue of e-Forex.
Meanwhile several established global exchanges have.
launched new currency futures products over the past.
several years and Singapore is no exception Singapore.
Mercantile Exchange has launched EUR/USD Futures.
and CME has launched some Asia currencies futures.
FX prime brokerage.
One of the currently growing business streams of the.
global banking groups and larger local players in the.
region is prime brokerage (PB). However while it may.
assist clients and capture business flow for providers,
prime brokerage brings with it concerns which the.
current crisis in the Eurozone and the inexorable.
tightening in the interbank market are not helping.
“South East Asia is a highly fragmented market with.
many countries and different regulatory frameworks.
Regulations in a lot of countries, unlike Europe,
do not permit financial institutions to participate.
in the FX market,” says Nomura’s Saurabh Sharma.
“Therefore we expect demand for FX prime broking.
as well as cross asset PB services to continue to grow.
as more hedge funds and high frequency players look.
to provide luidity to institutions in the region but.
would have very limited access without a PB.”
But the PB space is by no means a cakewalk. “It’s.
hugely competitive,” says RBS’ Salamon. “We have.
seen a number of the smaller banks in the region.
move to become providers of FXPB services over the.
last couple of years. This trend could increase due to.
clientes & rsquo; desire to source more competitive pricing and.
a larger pool of luidity. For certain types of clients.
this can only be accessed through a PB relationship.
Additionally the requirement to centrally clear NDFs.
could lead to more PB relationships in the region.”
All good news then but what about risk? “There.
has been increasing interest in taking up FXPB to.
minimise counterparty risk and to add convenience.
to dealing with a single counterparty while at the.
same time enjoying the luidity of several luidity.
providers. The smaller FCMs use FXPBs to maximise.
their funds and to increase mid-office operational.
efficiency,” says Joseph Ng at Philip Futures. “We.
observed that regional financial institutions offering.
FX services are also deploying PB services to overcome.
credit and counterparty issues. However, looking at.
the cases of Lehman Brothers and MF Global, this.
increasing reliance on a single clearing party seems to.
amplify rather than reduce inherent risk.”
The risk angle is further focused by RBS’ Chia.
Woon Khien, Head of Emerging Markets Research,
Emerging Asia. “Prime brokerage can be quite.
capital intensive for providers of these services. Em.
the moment a lot of banks are carefully managing.
their capital in the light of what’s going on in Europe.
and capital constraints. When you provide prime.
brokerage you take on risk and right now everyone.
is worrying about taking on everybody else’s risk.”
The message is clearly that if there is a squeeze on.
interbank credit lines or worries about hedge fund.
risk for example, expanding prime brokerage services.
might have to take a back seat, at least until calm and.
trust are restored to the markets.
Meanwhile the growth of FX trading services to retail.
traders and investors is expanding throughout the.
region. Firstly, there are those individuals who trade.
FX as an asset class, perhaps as a hobby or to make a living and who deal with the providers of leverage.
Hantec, OCBC Securities PTY Ltd, GK Goh and.
Saxo Bank are among such providers. Larger, global.
banks, such as JP Morgan and platform providers.
such as FXall in turn supply luidity to these players.
A second group is comprised of the private banks.
and the wealth management operations of local and.
international banks that have greatly increased the.
amount of FX they transact on behalf of their clients.
There is a considerable volume of wealth being.
invested both by family offices and by private banks.
“Retail FX trading has gained traction in South East.
Asia over the last 10 years, being marketed by many.
overseas brokers over the internet as an easy alternative.
to equities trading,” according to Joseph Ng at Philip.
Futuros Nonetheless, Singapore is presently the only.
S. E Asia country with an approved regulatory structure.
for financial institutions to offer leverage FX trading.
Many traders who start FX trading seek brokers who.
are able to provide stable platforms, with competitive.
preços. The desire for additional features such as charts,
news and advanced trading features are common.
requests from more active traders. Por outro lado,
more sophisticated FX traders who are looking to.
trade with larger fund sizes would pay more attention.
to a broker’s financial standing and the regulatory.
regime that the broker operates under.
Financial institutions like Phillip Futures, which.
operate from Singapore, are popular with this segment.
of clients. “Singapore regulators has established a strict.
set of conditions governing brokers’ activities and rules.
administering the handling of clients’ funds,” ele adiciona.
In addition although forex as an asset class in its.
own right does not figure in the latest Cap Gemini.
& ndash; Merrill Lynch “World Wealth Report”, what is.
clear is that Asian high net worth individuals in.
the region are investing a significant proportion of.
their wealth – of the order of 50% - outside their.
home territory, for example in the US. They are also.
becoming increasingly diversified into asset classes.
such as property and other alternatives. To do so.
they inevitably have to come to the foreign exchange.
market in order to purchase assets denominated in.
currencies other than their own.
“With South East Asian economies expanding at a.
rapid pace, countries like Indonesia have a growing.
population of wealthy people,” says Nomura’s.
Sharma. “Many of these have FX needs arising out.
of investments abroad and a greater appetite to.
participate in the retail foreign exchange market. Isto.
has increasingly become clear to banks that catering to.
a diverse set of clients and achieving scale via a good.
electronic offering is paramount.”
Key importance of technology.
“FX is as much about technology today as it is about.
financial markets,” continues Sharma. “Most serious.
players in the FX space are investing in technology to.
reduce latency, and have their data centres in optimal.
locations in order to eke out value from the business.
Algorithmic execution is slowly starting to pick up.
in the region. Clients are not only looking for best.
execution but also post trade analysis to best gauge the.
impact of their trades on the market and also reduce.
costs related to and around execution.”
Thomson Reuters is one leading FX provider which.
has been steadily expanding its offerings in the region,
“As banks have further embraced technology from.
a luidity perspective we have developed a strong.
community of users in this region, especially where.
local currencies are allowed to be listed on Thomson Reuters Matching and Dealing,” says Anthony.
Northam, the head of Asia for Thomson Reuters.
Marketplaces group. “Some of the major regional.
banks are adopting Reuters Electronic Trading (RET)
for in - house process management, they are using it.
as a pricing engine and to automate their branches.
for spot and swaps currency exchange. Whereas.
before, currency exchange would have been done.
mainly by phone, the benefits to them of automation.
are straight-through processing and better risk.
gestão. In addition, banks are now starting to.
use RET as a pricing engine to push prices out to their.
Another leading FX provider whose business has.
been growing strongly in the region is New York.
based FXall. Their multibank portal is now used.
by many locals as well as international players in.
South East Asia. “It is all about workflow,” diz.
Jonathan Woodward head of Asia-Pacific, “reducing.
risk for the buy side, ensuring compliance with.
various international accounting standards and.
future-proofing them for the changing regulatory.
Looking ahead, FX markets in South East Asia look.
well placed to prosper but where specifically is growth.
going to be felt. We asked market participants for their.
views. “I think there’s going to be a generic shift to the.
Asian region,” FXall’s Woodward adds, “as everybody.
looks to Asia as the saviour of the world economy - the.
engine of growth. We will see a shift in asset allocation.
strategies as funds search for alpha generating.
investments and a lot of hedge funds have started to.
spring up in Singapore and Hong Kong. You may pick.
up investment capital from some of the local sovereign.
wealth funds and escape, for the moment, some of the.
regulatory moves that are taking place elsewhere. Prop.
traders from banks who have been impacted by the.
Volcker Rule and lost their jobs are thinking of setting.
up funds here; there’s been a big growth in this area.”
Woodward says that FXall has seen 150% annual.
growth in the NDF business traded on its platform.
He sees this continuing at a similar pace for the next.
three to five years. He notes however that people tend.
to overestimate the amount of change that may take.
place in a two-year period but underestimate the change.
in a ten-year one. He believes that over the longer term.
NDF business could disappear in large measure as.
restricted currencies become freely tradeable. JP Morgan’s Shankar Hari sees the greatest growth.
potential in South East Asia as residing in the.
countries outside Singapore. “Most Singaporean.
clients have already been mined,” ele diz. “But in.
other markets such as Philippines or Indonesia or.
Malaysia there is greater scope for growth. As local.
regulations become more relaxed it will also lead to.
higher luidity in their FX markets.”
“Japan remains the largest retail margin trading centre.
in APAC despite the de-leveraging regulations brought.
in over the last couple of years,” explains Jamie.
Salamon at RBS. “However there is a definite trend for.
growth outside of Japan and this is centred mainly in.
Hong Kong, although pockets of substantial retail FX.
business also exist in South East Asia.” He anticipates.
continued growth in the retail space.
Regulation is likely to remain a significant influence.
for the foreseeable future. The credit risk challenges.
currently confronting FX options business lead many.
to believe that it will be necessary for there to be.
clearing houses located in each time zone to cover each.
FX derivative product, whether NDFs, options and.
Consequently as co-president of the SGX exchange.
Muthukrishnan Ramaswami surveys the future he.
sees it as holding great prospects for his business and.
for Singapore as a regional hub. “We want to be the.
clearing centre of choice in Asia,” says Ramaswami.
“OTC transactions by nature are borderless but there.
will also be instruments that are principally domestic.
and participants may want those to be cleared locally.
We will have to wait for the regulations to emerge. Nós.
currently list on SGX over 95% of the bonds listed.
in Asia that are issued cross border. But not domestic.
issues of which there are a great many. With other.
products it will be the same way. We see that the risk.
management will have to happen in each time zone.
where the risk happens. Therefore, broadly speaking.
there will be the need for a clearing centre in each of.
the three time zones.”
His message, like those of others in the vibrant South.
East Asian market, is that this is a region where FX.
is a rapidly growing, technology facilitated business.
This is where there is going to be a lot happening as.
continued strong economic fundamentals power the.
development of new FX products and capabilities over.
the coming years.
Regional Perspective on Africa.
Richard Willsher discovers how trade and telecommunications infrastructure shape the current foreign exchange market in Africa as a whole and although South Africa is the continent’s leading electronic trading market, he outlines why we can expect to see growth in e-FX taking place in many other countries within the continent over the next few years.
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Richard Willsher discovers how trade and.
telecommunications infrastructure shape the.
current foreign exchange market in Africa.
as a whole and although South Africa is the.
continent’s leading electronic trading market,
he outlines why we can expect to see growth in.
e-FX taking place in many other countries within.
the continent over the next few years.
A glance at the most recent Bank for.
International Settlements’ Triennial Central.
Bank Survey published at the end of December.
2010 reveals the foreign exchange market activity.
on the African continent pales beside other regions.
Africa and the Middle East together accounted for.
daily turnover of US$41 billion in all products in.
April 2010. Th is was out of a global total of US$3,981.
billion of which the two largest regions were.
Western Europe’s totalled US$2,780 and Asia Pacifi c.
US$1,159. South Africa was the only African country.
listed individually by country breakdown in the BIS Survey and its daily.
to US$14 billion out.
of the US$41 billion.
One might be forgiven.
for imagining the.
world’s second largest.
land mass is something.
of a backwater in.
terms but this would be to miss the point because it.
represents an outstanding growth opportunity.
“Apart from South Africa, which can be considered.
relatively advanced in its exposure to e-channels, the.
remainder of Africa is relatively untouched,” explica.
Declan Clements Director, eCommerce Business.
Management Financial Markets at Standard Chartered.
Banco. “Poor infrastructure, illuid markets, regulatory.
restrictions, inconsistency of electronic price availability,
relatively small ticket sizes and manual downstream processes represent an array of challenges to sell-side.
institutions in delivering a relevant offering,” ele adiciona.
but his outlook is a positive one. “As infrastructure.
improves, one of the larger barriers will be removed.
At Standard Chartered we see the upside opportunities.
as substantial, and are investing heavily in creating.
a technical capability that incorporates compliance,
straight through processing (STP) and post-trade.
services alongside price discovery and execution.”
Clements says that the main beneficiaries of improved.
access to electronic platforms will be corporate and.
Institutional clients in the more luid markets,
such as Kenya, Tanzania, Uganda and Ghana,
“notwithstanding a fluid governance environment that.
requires providers to be extremely responsive to the.
implementation of new regulations.”
Opening up new markets.
Jacob Dajani, Head of Middle East and Africa for.
Marketplaces at Thomson Reuters says that trading.
and technology infrastructure go hand in hand and.
telecommunications infrastructure has been a challenge.
in some African countries. “As a consequence we had to.
look at alternative methods to deliver Thomson Reuters.
Dealing and this has helped to open up new countries.
to the wider market. With more than 400 financial.
institutions using Dealing this has become the common way of trading FX electronically in Africa from Cairo to.
Lagos to Johannesburg, and our community continues.
to grow. As markets, luidity and infrastructure evolves.
this creates new opportunities to introduce new services.
such as Matching and providing single-bank platforms.
such as Reuters Electronic Trading to enable banks to.
reach and service their customers via an e-commerce.
So the message is clear, there will be great scope for.
growth in electronic trading once the infrastructure is adequate to facilitate it. What is happening in.
South Africa today is likely to fl ow through to the.
broader African region in years to come. Moreover.
with commodity prices refl ecting continued global.
concerns over the fi nite size of available resources,
increased income to mineral rich exporting territories.
to fund imports and infrastructure development is.
certainly on the cards.
“We see particular growth in demand and luidity.
from Nigeria and Kenya,” explains Richard de Roos.
Head of Foreign Exchange at Standard Bank. “But.
deals sizes are small. “In Rand we can deal in clips.
of up to US$250m and also stream prices in tens.
of millions. For the other African.
currencies we also stream prices.
into our own system as well as.
to aggregators such as 360T.
but up to sizes of about.
sometimes luidity in.
these the markets can.
be a little one sided.
and so you can only.
show prices on one side.
On the buy side, given.
the sizes of the equity and.
bond markets we tend not to see.
demand for clips of more than about US$5m.
When we do see demand we will either work the.
deal or quote prices depending on the luidity at.
He goes on to say that the smaller markets are.
Mauritius, Botswana, Zambia, Uganda but these.
are extremely small and Standard Bank concentrates.
on order fi lling rather than streaming prices. Isto.
concentrates on Anglophone areas of sub-Saharan.
Africa and the Lusophone markets of Angola and.
SA leads the continent.
South Africa remains the continent’s leading foreign.
exchange trading nation centred on Johannesburg.
With a share of turnover in the domestic Rand.
between 30% and 35% de Roos believes Standard.
Bank is the market leader. However even in this most.
advanced of African countries, e-FX is still in relative.
infancy when compared with Europe and North.
“Even in South Africa with the market infl uenced.
by the legacy of exchange control, the market is.
dominated by the corporate rather than by the.
investor community. Th e investor community here.
are not really big players in the foreign exchange.
mercados. Th ere are no institutions in the SA market or.
in the African continent that I know of who are actively.
trading in currency as an asset class,” says de Roos.
However this has not prevented banks making.
e-trading channels available to all of their customers.
Standard off ers its E-Market Trader, which is widely.
used by the corporate market. Th ey also use this to.
distribute to banks mainly on the African continent.
as well as to their own internal sales offi ces around.
the globe. “We have the ability to stream prices in.
US$-Rand and its crosses in G10 currencies on.
E-Market Trader. We also use this to distribute to the.
pockets of luidity that there are in the other African.
moedas. Th is works well where it can.
be associated with a strong brand and.
is largely therefore on the African.
Th e bank also has a product.
called Standard FX.
Trader, which is a.
white label agreement.
with Gain Capital and.
is used to distribute to.
individuals such as day.
Rivals Absa Capital are able to.
leverage the 55.5% shareholding.
held in them by Barclays Bank.
PLC in a number of ways, both.
in the domestic South African.
market and in the continent as.
“We run the sub-Sahara Africa currency.
book for Absa and for Barclays,” explica.
James Scott Absa Capital’s Head of FX Sales and.
eCommerce. “We are the price distribution source for.
all of the sub-Saharan Africa currencies and also cover.
gerenciamento de riscos. Johannesburg is our hub and we.
leverage the Absa and Barclays branches throughout.
Africa to further distribute product. We off er pricing.
in the more luid of these currencies to our South.
African client base as well as price those to Barclays.
electronic client base. Th is could be to a UK asset.
manager looking to do some Kenyan or to a South.
African corporate looking to hedge Ugandan. Nós.
publish a price as long as there is luidity in it.” Ele.
adds however, “In each of the domestic markets you.
currently wouldn’t fi nd that there is much demand.
from local banks to develop electronic trading at the.
moment.” He points out that in many of Africa’s smaller.
forex markets some of the international banks have.
launched localised versions of their own electronic.
plataforma. However even in South Africa itself getting.
electronic trading to take root has not been easy, but.
the market is developing quickly.
“Like a lot of developing markets, the infrastructure.
in South Africa was really poor. It was very diffi cult to.
get electronic capability into the buy-side client. Th e.
asset managers and hedge funds were the fi rst to move.
and where permissible they would tend to be trading.
& ndash; G10 against major players off shore. Th en we and.
other regional banks off ered our proprietary channel.
to clients. We would off er FX, money market and.
commodities in some cases. With certain clients we.
would off er an API [application programme interface]
with pre - and post-trade services, depending on the.
sophistication of the client and their requirements.
We have access to Barclays Capital technology, while.
others had to develop their own capabilities or partner.
with a global technology fi rm. Even though we had.
access to the Barclays technology it is still important.
to look at what made sense for the local South African.
or African market and then customise our off ering.
before rolling it out. In our case we launched PACE.
FX powered by BARX and delivered to local buy side clients. We believe that our “Global-Local” approach is.
unrivalled in Africa.”
A key feature underlying forex transactions in.
South Africa, as well in other African markets where.
exchange controls apply, is that there typically needs.
to be a concrete, not speculative, need for a currency.
troca. A lot of the demand is driven by trade.
activity whether it is in commodities or other types of.
imports or exports.
“Broadly speaking that is what is driving the foreign.
exchange market in all of these African markets,”
says Scott. “It’s less about the speculative fl ow and.
more about actual underlying trade fl ows. If you take.
that into the electronic space then there is going to.
be scope for developing electronic capabilities that.
service the types of clients which trade. Further it is.
always likely that developing the full trade cycle from.
pre-trade to execution and interface with treasury.
management and internal reporting systems will.
become a requirement. Absa Capital has continually.
invested in these services for both its South African as.
well as African client base.”
Th is is a view shared by Standard’s Richard de Roos.
His bank is actively developing its end-to-end off ering.
across the value chain from research and pre-trade.
to execution. Moreover reporting needs to be an.
integrated feature of electronic off erings to corporates,
both for their internal needs and in order to meet.
Reserve Bank compliance.
Product menu still limited.
In terms of available forex products South Africa is.
far in advance of any other African country. Spot and.
forward trades against the G10 currencies account for.
most of the market. Forwards can stretch as far out as.
two years but de Roos says that average demand tends.
to be around three months driven by large.
corporates and investors hedging their.
exposure to asset classes denominated in.
Dollars or Euros. Th ere is however a healthy.
and developing market in more sophisticated.
“Th e luid forward curve in the Rand goes.
out to 2 years,” says de Roos. “However because the.
bond market goes out to 30 years we are able to create.
forwards out that far. Demand for the longer-term.
transactions tends to be driven by large infrastructure.
projects or large capex spend which would be required.
to match the life of a project or purchasing cycle for.
exemplo. Th is we would price off of the swap curve.”
In addition the Johannesburg Stock Exchange quotes.
currency futures that are also used by institutions.
to hedge the currency risk associated with foreign.
asset holdings. However for the moment other.
products targeted at institutional clients such as prime.
brokerage are still in early growth phase.
“At present the prime brokerage market is in its.
infancy with most of it concentrated in South Africa.
says Th omson Reuters’ Jacob Dajani.
360T’s Alex Johnson who manages the fi rm’s sales in.
the region notes that the market is currently somewhat.
becalmed. “Hedge funds in places like Mauritius, may.
70 | april 2012 e-FOREX april 2012 e-FOREX | 71.
certainly demand such services, but like the rest of.
the world, demand is down. 360T has features and.
functionality to cater all such requirements but banks.
and corporates are not normally requesting PB services.
as they cost money and these requestors get better.
luidity and pricing by asking on a disclosed basis.”
Absa Capital’s James Scott is more upbeat however.
“We’ve got a multi-asset class PB platform that.
includes currency futures at this point. With access to.
Barclays Capitals FXPB platform and as the market.
develops we will naturally assess demand and develop.
adequadamente. We will start to see demand from the.
more developed markets outside of South Africa such.
as Nigeria and Kenya.”
New developments may however come quicker in other.
areas of the forex markets. Jacob Dajani says that he.
foresees signifi cant e-FX growth and the proliferation.
of eCommerce platforms will continue across the.
continent. Th is seems to be echoed by the moves that.
Standard Bank is making for example. “I think over the.
next 10 years African currencies are going to get a lot.
more attention,” says Richard de Roos. “Th e luidity.
and sophistication will then become self fulfi lling. Para.
Standard Bank it is about having the readiness. Nós.
are proceeding on an “e-wise” base. We are ready but.
recognise that development is likely to be in a bespoke.
Formato. So we are going to be prepared whether the.
demand comes from retail investors or corporates alike.”
A view shared by Absa Capital’s Scott, is that it is.
the bank’s plan to continually invest into its already.
well established electronic product suite. “Africa will.
provide a number of opportunities in the electronic.
space which we believe we are well equipped to take.
At 360T Alex Johnson believes that commodities will.
play a big role. “Given the traditional mining and.
minerals focus of many African economies, certain.
customers are wanting to transact in precious and.
base metals and others in more niche mineral and.
energy products. Due to the nature of the electronic.
trading of commodities, certain products will fit and.
others not. The major players in electronic trading, for.
example, will offer precious metals trading.”
“Regulations here are increasingly being loosened and.
that is opening the door for retail investors to trade.
electronically,” adds James Scott at Absa Capital.
“There are very few electronic offerings either here.
[in South Africa] or in the rest of Africa. More retail.
electronic platforms will most likely be launched into.
these markets probably with partnerships being forged.
between local players and international technology.
empresas. We have seen ECN’s like 360T coming.
into some of the African markets. Eles estão olhando.
to get buy-side clients onto their channels. Múltiplo.
banks are contributing to the pricing, but for the.
moment there is relatively low demand. I think the.
banks will continue to develop their proprietary.
channels and the biggest growth will be in this space.”
Meanwhile Thomson Reuters is widely represented in.
markets across Africa where, according to Jacob Dajani.
they are working with the key market participants.
from central banks, to regional banks and their.
clientes. “We have worked closely with countries.
to help them move from a domestic to international.
mercado. There is great opportunity in the region. Nós.
are actively working to open up access to international.
markets by providing the local news, content and.
market insight via our Thomson Reuters Eikon.
desktop plus the connections and infrastructures that.
enable both local and international banks to trade.”
A clear message emerges then when speaking to market.
participants. It is that lack of technology infrastructure.
and exchange controls on essentially weak and illuid.
currencies remain the principal barriers to forex trading.
in general and e-trading in particular in Africa. Yet the.
balance of economic power is shifting from the formerly.
wealthy west to commodity rich regions, wherever on.
the planet they are. Africa remains in catch up mode.
as compared with, for example, Latin America, Asia.
or some of the former eastern block states and “catchup”
spells “growth prospects” for those who seek.
opportunities in emerging markets. Trading in African.
currencies offers exceptional scope for growth once they.
have passed their growth tipping points. Then they may.
leapfrog conventional foreign exchange dealing to e-FX.
trading on a continental scale.
OTC FX Clearing Moves to Centre Stage.
Lack of clarity about the extent of mandatory regulation for over the counter foreign exchange (OTCFX) derivatives persists but 2012 should bring greater definition and guidance to those in the market.
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Lack of clarity about the extent of mandatory.
regulation for over the counter foreign exchange.
(OTCFX) derivatives persists but 2012 should bring.
greater definition and guidance to those in the.
mercado. Meanwhile, Richard Willsher reports on how.
exchanges, clearing houses and service providers.
are setting their strategies and gearing up their.
technology for the opportunities that may emerge.
As it stands we know that non-deliverable.
forwards (NDFs) and FX options will be.
mandated under the European Markets.
Infrastructure Regulation (EMIR) in Europe and the.
Dodd-Frank Act in the US. We also know that both.
pieces of regulation exclude spot FX and commercial.
the [US] Commodity Futures Trading Commission.
(CFTC) such as block size and whether block size will.
apply to NDFs in general or by currency pair.”
Although CME clears a large range of FX futures and.
options, in conjunction with ICAP, CME Clearport.
now provides clearing for US Dollar (USD) / Chilean.
Peso (CLP) NDFs. The model is a central clearing.
counterparty (CCP) one where CME Clearport.
becomes the guarantor to every buyer and seller of.
the product. It is an early offering that will lead to “a.
full suite of cleared OTCFX products,” CME reports.
They anticipate offering 11 NDFs and 26 cash-settled.
futures (CSFs) in due course.
This example represents a pre-emptive strike by.
a major exchange for a share of the increasingly.
demanded forward market in restricted emerging.
markets currencies. It is geared to meet what is.
thought likely to be required under Dodd-Frank. Isto.
provides a secure platform for financial institutions.
that require hedging for their corporate clients or.
proprietary trading capability for their own account.
forward transactions. Beyond that a regulatory fog.
“Clearing of OTCFX continues to be an evolving.
topic with more questions than answers at this point,”
according to Chip Lowry, Chief Operating Officer.
at New York headquartered FX platform Currenex.
“Certainly, Dodd-Frank mandates the clearing of.
NDFs and FX options however the timing of this.
requirement is still being determined. Globally, some.
clearing houses already offer clearing services for.
NDFs but take-up has been slow.”
“The US appears to be the first jurisdiction that will.
mandate clearing of NDFs; however the industry is.
still waiting for solutions to appear,” continues Lowry.
“Several important rules are awaiting finalisation from.
Noteworthy is the choice of a Latin American.
(LATAM) currency where the time zone is the same.
or similar to that of the US financial markets. O.
Chilean Peso is supported by a growing and resource.
rich economy and the general trend in USD/CLP.
rates has been relatively stable in comparison to more.
exotic or dramatically fluctuating currencies in the.
LATAM region. These key features are already being.
replicated for other emerging market NDF currencies.
in another time zone, i. e. South East Asia.
On 24th October this year Singapore Exchange (SGX)
launched a clearing service for FX non-deliverable.
forwards in Asian currencies. Settling in US Dollars.
and with a maximum residual term from date of.
submission of 375 days, the currencies eligible for.
clearing are Chinese Renminbi (CNY), Indonesia.
Rupiah (IDR) Indian Rupee (INR), Korean Won.
(KRW), Malaysian Ringgit (MYR), Philippine Peso.
(PHP) and Taiwan New Dollar (TWD).
As Asia’s only CCP facility for a variety of derivatives,
the clearing members eligible to take part in clearing.
include: Barclays Bank PLC, Citibank N. A., Credit.
Suisse AG, DBS Bank Limited, Deutsche Bank.
AG, HSBC, Oversea-Chinese Banking Corporation.
Limited, RBS, Standard Chartered Bank, United.
Overseas Bank Limited and UBS. As yet it is early.
days for this new on-exchange clearing activity.
and volumes have so far been relatively modest.
as compared with longer established SGX listed.
products, however, research carried out by the.
exchange ensures that the facility is demand led.
“We have chosen to clear trades that are between.
professional clearing members,” explains SGX copresident.
Muthukrishnan Ramaswami. “There have.
been pretty high bi-lateral risks that they are taking.
hoje. This way is more capital efficient for them as.
taking risk on a CCP carries a lower capital rating.
than bilateral risk, especially when Basle III comes.
In due course Ramaswami expects SGX will extend.
this model to clearing client trades, and, in due course,
probably FX options – of which more later. O.
introduction of clearing for NDFs posed a variety of.
challenges on the technical side which SGX dealt with.
in a pragmatic and system-agnostic manner.
“We are not setting the agenda on what needs to be cleared,” Ramaswami continues. “What needs to be.
cleared is determined by the capital requirements.
for each instrument and therefore what each of our.
participants wants to do for their various asset classes.
It is different from an exchange led process. It is what.
our members want to clear. We are a need fulfiller in.
this context. As an exchange we work with probably.
30 different order management systems in our futures.
and securities context but we work with them using a.
FIX protocol or a specific [application programming.
interface] API. The providers will usually be able to.
work with one of those. So it’s about standardising the.
interfaces rather than standardising the registration.
mechanisms. Moreover these providers also want to.
connect to many clearing houses. They want to be able.
to service their clients in multiple jurisdictions. So this.
is a two-way industry need between the registration.
systems and the clearing houses. The OTC execution.
remains as is. Putting it into a clearing house brings the.
rigour of margining and rigour of having collateral to.
support your positions. And having that held in a ring.
fenced manner in a clearing house and away from any.
risk you may run from having it with a broker or bank.”
Challenges and risks.
Significantly however, while SGX has an eye towards.
EMIR and Dodd-Frank, no mandatory regulation is.
yet on the horizon in Singapore. This brings with it.
with the risk, or the opportunity, depending how you.
look at it, for regulatory arbitrage. This is an evolving.
story and it remains to be seen whether OTCFX.
clearing becomes a global phenomenon.
“The global nature of the FX market means that.
clearing infrastructure and processes need to be as.
harmonised as possible across the world’s financial.
centres. Regulatory harmonisation will be key to.
enabling participants to trade quickly and efficiently.
with their global counterparts, whilst avoiding the.
negative consequences of regulatory arbitrage.” diz.
Wayne Pestone, Chief Regulatory Officer, at FXall.
However, where relatively rarely traded and.
unstandardised NDF currency pairs are traded in local.
emerging markets, less tightly regulated regimes will.
most likely still apply.
Meanwhile vendors providing trading platforms for.
institutional, global clients have some challenges to.
overcome. “The biggest challenge we are going to have.
[in the new regulatory environment] is configuring a.
multi drop copy capability and sending it to enough.
people who are interested in that trade,” says Jonathan.
Woodward head of Asia-Pacific at FXall. “For example,”
he says, “if you had some American money domiciled.
in Hong Kong but then traded with a Singaporean.
bank and cleared with SGX you are going to need to.
report that to authorities in the US, Singapore and.
Hong Kong. So, instead of just giving the client some.
straight through processing you have to think, “where.
else do they want us to drop this information so that.
they comply with any future regulations?”
What quickly becomes clear from this is that.
multibank portals or electronic communications.
networks (ECNs) that have global capabilities to.
connect with CCPs, clients and regulatory authorities.
wherever they are based, have a pivotal role to play.
Which is not to say that single bank platforms do not,
because they may provide additional, more specialised.
and less standardised services to their clients. Contudo.
interoperability is vital. No portal can afford to be.
an island or its clients will quickly migrate to where.
communications to all relevant parties to its activities.
are easiest, most efficient and lowest cost.
So, for example, at Nomura, Mark Croxon who is.
executive director, prime services and global product.
manager for OTC clearing, says the objective is, “to.
build a clearing house agnostic service across products,
asset classes and regions. That does present some.
challenges in terms of ensuring the connectivity to.
each of those clearing houses and venues. Tem.
challenges with getting the plumbing set up, although.
there are a number of vendors who can help with this.
You may also have a connectivity unit internally that is.
there to set up and maintain some of the connections.”
Minimising systemic risk remains at the core of.
the various efforts to develop OTC clearing. & ldquo;
intention of the legislation is to reduce systemic.
risk by making OTC markets and counterparty.
risk management more transparent. Specifically.
around risk management, it is about having the.
collateralisation and default management processes.
prescribed and the margins and default fund.
contributions relating to those positions being posted.
and being held up front at the central clearing house.
Furthermore rules in the US, and incentives from.
a regulatory capital perspective under Basel III, are.
leading to segregation of those funds risk and the.
exposure to significant institutions defaulting,” says Croxon.
While regulatory guidance on the requirements for.
NDF clearing have been relatively straightforward.
there is still missing detail as regards FX options.
“While NDFs are relatively simple instruments.
to clear in theory, FX options pose some logistical.
issues that still need to be sorted,” says Chip Lowry.
of Currenex. “One issue is around auto-execution at.
termo. In the listed world, auto-exercise is handled by.
the clearing house and is a standard process. Porque.
OTCFX options are not standardised instruments,
the question of who decides execution remains open.
There is an ongoing dialogue between end users of.
these contracts and clearinghouses about this issue.”
“The other issue to be tackled,” he adds, “is.
guaranteed settlement. Industry authorities such.
as The Committee on Payment and Settlement.
Systems (CPSS) and the Technical Committee of the.
International Organization of Securities Commissions.
(IOSCO) have proposed that clearing houses.
guarantee the actual FX settlement of an exercised.
opção. As the amounts involved can be quite large,
clearing houses are not yet comfortable with this.
conceito. This issue is fundamental to OTCFX options. Without agreement on this topic, I doubt.
we’ll see FX options cleared in the near-term.”
“Whilst a general framework [for which products.
will be eligible for clearing] has been provided by the.
Dodd-Frank Act in the US and EMIR and Mifid II in.
Europe, there has been no decision on the final rules.
The challenge for industry participants is to make.
preparations that are as future-compliant as possible.”
says Pestone, “The industry knows that change is.
coming but is in need of clarity around what, exactly,
these changes will be, and when and how they will be.
implemented. As such, it is important to prepare for.
For the time being it is expected that the rules under.
both EMIR and Dodd-Frank will be in place during.
2012. Institutions required to comply still lack the.
clarity to build the required systems. The timeline,
which began with post-2008 crisis G20 talks looks like.
extending some distance yet and it seems likely that.
compliance will not become mandatory until 2013.
Market participants are in general sanguine about the prospects for their businesses and are taking what.
steps they can to ensure that they will be ready to offer.
compliant services to support their clients’ necessidades. O.
greatest fear is that regulations will either mismatch.
across various jurisdictions - Europe, the US, the.
major financial centres of the Far East - and that they.
will be implemented at differing times. Ambos estes.
could cause competitors to avoid regulatory constraints.
perhaps by relocating their operations to unregulated.
centres. In the end however, as with so much of the.
post-crisis regulation that has emerged from Brussels and.
from the US, there is a certain inevitability surrounding.
global compliance. The FX market will probably have.
no choice about whether or not to comply with OTCFX.
regulations eventually. Going forward the game is about.
minimising the effects and costs of regulation through.
the lobbying efforts of bodies such as AFME, SIFMA,
ASIFMA and others and then ensuring that full clearing.
and transparency requirements will be met when the.
regulations take effect.
MiFID II, EMIR and Dodd-Frank - where are we now?
For the first time the Markets in Financial Instrument.
Directive (MiFID) will cover market trading of.
OTC derivatives. London-based law firm Linklaters.
advise, “All trading in derivatives which are eligible.
for clearing and sufficiently luid will be required to.
&touro; Multilateral trading facilities (F); ou.
&touro; A specific sub-regime of organised trading.
facilities, which must fulfil (as well as general.
requirements for organised trading facilities,) the.
o - Provide non-discriminatory multilateral access.
to its facility;
o - Support the application of pre and post-trade.
o - Report transaction data to trade repositories;
o - Have dedicated systems or facilities in place for.
the execution of trades.”
Pre - and post-trade transparency requirements will.
relate to all derivatives trades wherever they are.
MiFID II proposals were published by the European.
Commission on 20th October 2011. Consultants.
Deloitte say, “Given the timeframes set out, it does.
not seem likely that the G20 deadline for the trading.
of standardised derivatives on electronic platforms by.
the end of 2012 will be met.”
The UK Financial Services Authority (FSA) advises.
that European Markets Infrastructure Regulation.
(EMIR) “follows, and facilitates within the EU, the.
commitment made by G-20 leaders in Pittsburgh,
September 2009, that:
“All standardised OTC derivative contracts should be.
traded on exchanges or electronic trading platforms,
where appropriate, and cleared through central.
counterparties by end-2012 at the latest. OTC.
derivative contracts should be reported to trade.
repositories. Non-centrally cleared contracts should.
be subject to higher capital requirements. We ask.
the Financial Stability Board (FSB) and its relevant.
members to assess regularly implementation and.
whether it is sufficient to improve transparency in.
the derivatives markets, mitigate systemic risk, and.
protect against market abuse.”
The European Parliament finalised its input in July.
of this year. Currently EMIR is being fine tuned.
in a “trialogue” process involving the European.
Parliament, the Economic and Financial Affairs.
Council (ECOFIN) and the European Commission.
It is expected that this will be concluded in the first.
quarter of 2012.
“The [Dodd Frank] Wall Street Reform [and.
Consumer Protection] bill will – for the first time.
& ndash; bring comprehensive regulation to the swaps.
marketplace. Swap dealers will be subject to robust.
oversight. Standardised derivatives will be required to.
trade on open platforms and be submitted for clearing.
to central counterparties. The Commission looks.
forward to implementing the Dodd-Frank bill to lower.
risk, promote transparency and protect the American.
public”, Gary Gensler, chairman of Commodity.
Futures Trading Commission (CFTC).
While CFTC has finalised certain parts of Dodd-
Frank it is not expected to have defined the precise.
rules for FX derivatives until the first quarter of 2012.
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