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3 weeks ago | 
risk.net | Cole Lipsky
Foreign exchange structurers are seeing increased demand from US corporates for options-based hedges that can limit losses on their net investment hedges caused by the US dollar's selloff. While the economic value of derivatives hedges offsets changes in foreign assets, when those positions hit maturity companies can face hefty mark-to-market payments.
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1 month ago | 
risk.net | Cole Lipsky
The deal contingent (DC) hedge market has been making a comeback, after President Trump's chaotic tariff policies in April led to a sharp dropoff in public merger deal activity amid the widespread economic uncertainty. "The tariff discussions and news flow saw a lot of timelines pushed out, but I feel deals are coming back in now, and we're getting quite a lot of inbound requests of substantial size," says Edmund Carroll, head of FX, rates and commodities corporate client solutions at UBS.
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1 month ago | 
waterstechnology.com | Cole Lipsky
Tweet Facebook LinkedIn Save this article Send to Print this page Baton Systems and post-trade technology vendor Osttra have struck a partnership with Fnality to integrate its blockchain-based payments system to its payment-versus-payment (PvP) foreign exchange settlement platform.
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1 month ago | 
risk.net | Cole Lipsky
Baton Systems and post-trade technology vendor Osttra have struck a partnership with Fnality to integrate its blockchain-based payments system to its payment-versus-payment (PvP) foreign exchange settlement platform.
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1 month ago | 
fx-markets.com | Cole Lipsky
Foreign exchange options are having a moment. Rising geopolitical uncertainty and volatility have made optionality a much sought-after feature among both hedgers and speculators. The amount of FX options traded daily by the 20 largest dealers jumped 136% in the five years to October 2024, according to the US Foreign Exchange Committee’s semi-annual volume survey. Similarly, statistics from the Bank of England’s Foreign Exchange Joint Standing Committee show average daily volumes (ADV) for FX
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1 month ago | 
risk.net | Cole Lipsky
Foreign exchange options are having a moment. Rising geopolitical uncertainty and volatility have made optionality a much sought-after feature among both hedgers and speculators. The amount of FX options traded daily by the 20 largest dealers jumped 136% in the five years to October 2024, according to the US Foreign Exchange Committee's semi-annual volume survey.
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1 month ago | 
risk.net | Cole Lipsky
Wells Fargo's decision to tilt its foreign exchange business towards institutional buy-side clients is paying off, with the San Francisco-headquartered bank seeing a big jump in trades with insurers in the fourth quarter to supplement its multi-year growth with mutual funds.
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2 months ago | 
risk.net | Cole Lipsky
Goldman Sachs was the top US dealer for foreign exchange trading revenues in 2024, which more than doubled at the firm thanks to increased trading activity at the end of the year, according to regulatory filings. The investment bank generated revenues of $6.3 billion for the year, up 125% from $2.8 billion in 2023, thanks to just over $4 billion in the final quarter of the year alone. This growth propelled the bank to overtake JP Morgan's 2023 top spot.
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2 months ago | 
fx-markets.com | Cole Lipsky
FX options venue SpectrAxe has hired Robert Schultz as chief operating officer for the Americas, effective April 21. Schultz joins from Deutsche Bank where he worked for more than 12 years, most recently serving as a product manager and vice president in FX prime brokerage and algo trading. In his new role, Schultz is tasked with expanding the credit intermediation network for SpectrAxe’s central limit orderbook (Clob) for all-to-all trading of over-the-counter FX options. “We are bringing in
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2 months ago | 
waterstechnology.com | Cole Lipsky |Anthony Malakian |Max Bowie |Rebecca Natale
With foreign exchange volatility surging to new heights, a growing number of execution management system (EMS) vendors are developing automated solutions designed to help buy-side firms manage operational risk when trading FX options. Buy-side traders have long been frustrated by the lack of effective integrated workflow tools for the instruments. In December last year, the FX trading head at T Rowe Price said it “feels like it’s [done] on the back of a cigarette packet”. Now vendors like Digital
