Joe Parsons

2 weeks ago | risk.net | Joe Parsons

BestX and Tradefeedr, the two main third-party transaction cost analysis (TCA) providers, have launched tools that enable buy-side firms to standardise and automate counterparty selection for cash foreign exchange trades, ahead of request-for-quote or algorithmic execution.

3 weeks ago | risk.net | Joe Parsons

The sharp fall in the US dollar following President Donald Trump's "liberation day" tariffs announcement saw intense activity on foreign exchange options desks, leaving dealers rushing to buy volatility to re-hedge EUR/USD books as spot surged. "It was manic... it almost made the Turkish lira [moves] irrelevant," says one head of FX derivatives at a large European bank.

3 weeks ago | risk.net | Joe Parsons

Bank trading desks are optimistic that initiatives by Bloomberg to open its chat application programming interface (API) will significantly help them price bilateral foreign exchange trades more accurately - and help bridge the gap between voice and electronic market-making. In certain currencies and cash FX instruments, where electronic liquidity on trading platforms is thin, interdealer brokers (IDBs) are still the main way for banks to gather prices and connect to the market.

1 month ago | risk.net | Joe Parsons

In the US, March Madness is synonymous with the annual knockout college basketball tournament, known for its unpredictable results and stunning turnarounds. But the country has seemingly exported this concept to its foreign policy in the past month, with shifting tariff threats, territorial disputes and abortive peace talks with Russia putting foreign exchange on the front line of market reaction (cue the 'Make FX Great Again' slogans...).

1 month ago | risk.net | Joe Parsons

The increase in sudden large movements in foreign exchange spot markets driven by President Donald Trump's chaotic tariff announcements may be being amplified by market-maker pricing algorithms reacting to changes in intraday volatility and limiting how much risk they can take on, say some dealers. As spot FX market flows have moved to electronic channels over the years, liquidity providers (LPs) increasingly rely on pricing algos to react to market news and set bid/offer spreads.