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Hedge funds are significant players in financial markets given the size of their capital bases and the frequency of their trading. According to a report by Hedge Fund Research, Inc., as of the end of 2020, hedge fundsmanaged approximately $3.6 trillion in assets globally.
Eric Huttman, chief executive, MillTechFX Despite the relative calming of FX volatility compared to 2022, the management of currency risk was still a top priority for fundmanagers throughout 2023. Our That goes for all markets, including FX swaps where it will be more important to manage short term interest rate risk.
If you want to work in the most cyclical role in the finance industry, it’s hard to beat commodity hedge funds. But a few related areas, such as commodity desks at banks, commodity trading advisors (CTAs), and physical commodity trading shops could put up a good fight for that “most cyclical” title.
Michael Peters At a recent roundtable, Deutsche Börse Group derivatives exchange, Eurex, shared its plan to harmonise onto one riskmanagement infrastructure over the next two years. Almost a decade ago, back in 2014, Eurex clearing was a leading innovator when it came to real-time riskmanagement.
Robbert Booij The asset class is increasingly becoming a buy-side topic said experts as end clients are voluntarily joining the cleared repo environment, viewing it as a neat instrument to facilitate trading. It’s education, it’s product offering, and marketing potentially as well [that will boost retail trading].
The Financial Stability Board (FSB) has released a consultation report highlighting the need for policy adjustments to address liquidity strains in the non-bank financial intermediaries (NBFI) sector – such as hedge funds – particularly during periods of heightened margin and collateral calls amidst market stress.
Getaround’s stock soared 135% in after-hours trading on the news, reaching a high of $0.80. The combined company’s stock began trading at around $10 per share, but promptly plummeted. HyreCar brings other assets to the table, including extensive user data and strong riskmanagement solutions, according to Zaid.
Portfolio trading as a concept has exploded in the last few years, egged on by market conditions and volatility brought on by the pandemic and other macroeconomic factors. However, whether or not all firms are able to monetise the tool by managingrisk effectively in today’s environment, is up for debate.
Simon Gallagher, chief executive, London and head of global sales, Euronext We think that the introduction of an anonymised, single-level pre- and post-trade consolidated tape will trigger innovations at trading venues. We see the entire post-trade space becoming more and more of a platform business. But we are seeing changes.
Industry stalwart Dan Hinxman has joined Bloomberg as head of European credit electronic trading following almost six years as managing director at TP ICAP. His experience also encompasses hedge fund related roles, including futures and options trading and work on a fixed income desk.
Derivatives volumes in Asia-Pacific (APAC) are growing at a considerable rate – contrasting declines in Europe and marginal growth in the US – presenting increased opportunities for European proprietary trading firms and hedge funds. Trading Technologies has long recognised the tremendous trading opportunities in the APAC region.
FIA Tech’s Trade Data Network (TDN) is now certified with and connected to Singapore Exchange (SGX), with FIA Tech expected to roll out TDN connectivity to all SGX members subscribed to the network in Q4. Riskmanagement and recovery will be improved by this in the event of a systemic outage such as a cyberattack or technology failure.
The annual Leaders i n Trading gala is the most distinguished awards night for the trading community. Among the most coveted awards categories is the Editors’ Choice Awards and today we bring you the 2023 nominees for Outstanding Post-Trade Services Provider.
Marex has become a trading and clearing member of Singapore Exchange Group (SGX), which will allow the firm to offer direct trading and clearing services to clients across SGX. Marex’s clearing business offers infrastructure services to a range of clients including banks, hedge funds, asset managers, corporates and trading groups.
TS Imagine and Cassini Systems have today entered a strategic partnership, with Cassini’s intelligent analytics across over the counter (OTC) and exchange traded derivatives (ETD) products now available via TS Imagine’s offering, The TRADE can reveal.
Instead, a combination of rising interest rates, inflation, soaring energy prices and geopolitical tensions have hit hedge funds, and subsequently the riskmanagement practices of prime brokers.
Read more: Falling European SI volumes shows traders’ changing approach to risk during volatility, survey finds Despite FX volatility falling slightly in the more recent term – the degree to which clients are hedging has therefore gone up, not down.
Next up in our introduction to the distinguished nominees for Leaders in Trading 2023 Editors’ Choice Awards, we bring you the shortlist for the Outstanding Market Data Provider category, shining a light on those displaying recent excellence in the data sphere.
M&G Investments has led a $30 million Series B funding round for FCA-authorised digital asset derivatives venue GFO-X. Alongside the funding round, M&G Investment will join the board of Global Futures and Options Holdings.
FXCM’s institutional arm FXCM Pro has entered a liquidity bridging partnership with Tools for Brokers (TFB), an international provider of technology for retail brokers, prop trading companies and hedge funds. Brokers are also provided with data analysis and improved riskmanagement through one user interface. “We
MEMX, the member’s exchange, has launched its platform for trading listed options following approval from the US Securities and Exchange Commission in August last year. MEMX Options will leverage MEMX’s data-centric exchange architecture and infrastructure, offering traders passive and active riskmanagement capabilities.
Clearing services will be provided through LCH SA’s new dedicated service, LCH DigitalAssetClear, for these contracts traded on the UK FCA regulated digital asset derivatives trading venue, GFO-X. LCH DigitalAssetClear is underpinned by a segregated default fund, a unique riskmanagement model and dedicated set of clearing rules.
DTCC has launched a new public-facing Value at Risk (VaR) calculator to help increase transparency for market participants. The calculator enables participants to evaluate potential margin and clearing fund obligations associated with becoming a member of DTCC’s Fixed Income Clearing Corporation (FICC) Government Securities Division (GSD).
With the size of transactions in the US Treasury market now exceeding $7 trillion daily, CCLF is will serve as a riskmanagement tool used for managing FICC’s liquidity risk linked to settlement activity. The post DTCC’s FICC launches new contingency liquidity calculator appeared first on The TRADE.
Through the integration of CCS flows into CLSSettlement, the offering provides multilateral netting against all other FX transactions, resulting in liquidity optimisation benefits alongside reducing client’s daily funding requirements. ” The post Barclays connects to CLS’s cross currency swaps service appeared first on The TRADE.
Then, the bank lends these funds to companies and individuals and charges interest on these loans. These loans create matching deposits on the L&E side of the bank’s Balance Sheet, and the bank then finds real deposits or other funding sources to back the loans. But the U.S.
The BlackRock EMEA equity trading team picked up The TRADE’s highly coveted Trading Desk of the Year, Long-Only award at the Leaders in Trading 2023 event in November. And that is exactly what the London-based trading team embodies. Every day is different, and markets are evolving at a phenomenal pace.
billion in investor funding over the last 12 months, spread over 156 deals, an increase of 81.4 From algorithmic trading and riskmanagement to fraud detection and customer service, the applications are vast and varied. AI agent startups secured $8.2 percent year over year, according to PitchBook data.
Cboe Global Markets announced that its new Cboe S&P 500 Variance Futures are expected to begin trading on Monday 23 September on the Cboe Futures Exchange. Cboe Global Markets added that the contracts will quote and trade directly in variance units, offering a simplified approach to managing and trading variance exposure.
Security Operations constituted the largest sub-sector of M&A activity , followed by RiskManagement , Infrastructure , and Identity. Strategic acquirers are increasingly unifying disparate security tools to simplifyoperations and gain greater visibilityacross organizations’attack surface and prioritize cyber risks.
This means that having pre-trade transparency on funding costs, clearing fees, collateral schedules and initial margin becomes an important part in deciding what your implementation looks like as well as potentially impacting counterparty selection. How can TCA be best leveraged when trading equity derivatives?
Starting from 22 January, Eurex will begin trading futures on SRI indices calculated by STOXX and MSCI, strategic partners in Eurex’s offering of derivatives on ESG indices. Average daily trading volume last year was more than 12,000 contracts, with annual trading volume roughly 5% above 2022.
Frédéric Benizri has left TP ICAP to join financing, investment and riskmanagement business CIC Market Solutions as a sales trader. Around the same time, TP ICAP picked up a minority stake in real-time data sharing and workflow platform, ipushpull as part of a Series A funding round.
London-based fintech C8 Technologies is set to launch an FX hedging platform which employs systemic trading models to help businesses manage their currency exposures. The post C8 Technologies launches new systemic FX hedge platform appeared first on The TRADE.
The Securities and Exchange Commission (SEC) is in the process of introducing noteworthy rule changes to the clearing of fixed income securities, a development which is set to reshape the landscape for fixed income trading. For trading desks, the new rules will result in a range of operational and regulatory shifts.
First announced in December last year, the SEC’s new rules are designed to enhance riskmanagement practices for central counterparties in the US Treasury market and facilitate additional clearing of securities transactions in this market segment.
Cheung was previously a strategic account manager at Enfusion, focused on APAC-based hedge funds, family offices and asset management firms. In his new role, Hoong will provide technical account management and support to clients in Hong Kong.
The investment strategies of these new ETFs are designed to enable portfolio management teams to maximise yield while preserving capital through robust investment processes and riskmanagement. SSGA’s dedicated active fixed income portfolio management team will manage the funds.
Recent trends highlight an increasing demand from asset managers, fast money, and quant funds, expediting the transition toward electronification in NDF markets. The early adoption of electronic trading platforms for Asian NDFs is another distinguishing factor. What is algo usage like for NDFs trading on the buy-side?
For hedge funds, access to capital and the ability to shift directions with agility — to create, employ, and scale new strategies — is critical. Partners that see risk in the same way hedge funds do are becoming rarer. The post Fireside Friday with… Clear Street’s Andy Volz appeared first on The TRADE.
Elsewhere in his career, Chalkley served as a European government bond, inflation and absolute return fundmanager at BlackRock. Tourmaline Partners hired three new seasoned financial markets executives as managing directors to help strengthen its global trading capabilities.
Senior equity trader at Janus Henderson, Stuart Mair, left the asset manager after 14 years. According to an update on his social media, Mair joined hedge fund and systematic trading platform Schonfeld as an equity trader dealing with long and short strategies. As part of his new appointment, Chin will be based in New York.
Joining the industry after graduating from business school at the age of 20, Papanichola has an impressive track record that spans across five hedge funds and two banks. My key takeaway from those guys was that the core foundation of trading isn’t about buying and selling. I could literally trade any product if I wanted to.
But the headwinds have subsided, and the tailwinds have finally arrived in the form of new fund launches, a rise in allocations and increasing returns for funds, not to mention the continuing emergence of multi-strategy hedge funds. billion in 2023.
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