Before Friday, March 26th, few had heard of Archegos Capital Management, an investment vehicle owned by Bill Hwang, a former hedge-fund trader with a volatile risk-taking past. Archegos had emerged as the entity behind the huge sale of at least $20bn worth of shares, which shocked the stock markets on an otherwise unremarkable Friday and has left at least two global banks – Credit Suisse and Nomura – facing multi-billion-dollar losses.
If anything has demonstrated the cracks… or rather gaping holes.. in the risk management procedures of the Tier 1 FX interbank dealers recently, it has been the debacle surrounding the now notorious Archegos hedge fund.
It is unclear if Ripple is addressing central banks with its white paper as a way to put pressure on the ongoing legal battle with the SEC. Either way, central banks may also hesitate to work with Ripple at this particular time.
The phenomenon of day-traders piling into no-fee, mobile-native venues in unprecedented volumes to buy stocks and call options in GameStop and other heavily short-sold companies reverberated throughout financial markets in the last week of January. The snowballing demand created massive share price volatility and huge collateral requirements, restricting retail investors’ access to trades as momentum was reaching its peak
Salvatore Buccellato is an FX industry veteran who recently took on Chief Executive Officer’s role at Delkos Research. The company provides various customer behaviour analytics tools to help brokers maximize customer retention, revenue and increase client lifetime value. We spoke with Salvatore about the company’s recently launched RAZR product, which enables firms to adopt an effective client engagement strategy.
Ilan Azbel, CEO and Founder of Autochartist, has over 20 years of experience in technology, 15 years in the financial markets and an academic background in mathematics, computer science and engineering.
Yesterday we saw further volatile trading in GameStop shares. Whether this is the start of another rally or just day traders ‘shaking the tree’, time will tell. But what is clear is that this new trading type won’t just go away.
Dedicated regtech companies and a stringent effort by FX brokerages to maintain compliance procedure over recent years has once again shown our industry to be right at the top. Especially when considering the blotted copybook of the banks.
Now that Finantsinspektsioon has decided to fine Admiral Markets AS, the trading industry can only expect a cascade of fines against other brokers who made similar decisions to preserve stable trading conditions amid unprecedented events like the negative oil prices and the r/WallStreetBets mania.
Last year gave rise to digital banking applications and web-based transaction capabilities—all cementing the idea your financial needs are now an online experience.
FX industry expert with 30 years expertise notes that in times of high volatility, some retail brokerages allow losing positions but not profitable ones
Do you want to be subservient to a fully closed system which dictates who processes trades, or do you want to have full access to derivatives exchanges and global markets when entering the multi-asset space and therefore be master of your own destiny in a world of massively high output, experienced traders?
The situation that affected Robinhood should serve as a reminder to broker dealers that b booking is not a sustainable business model
Facebook may well once again have shot itself in the foot. The difference is, FX brokers cannot afford to shoot themselves in the foot. It is our duty to iron out conflicts of interest and ensure that traders and brokers have access to genuine products via global markets
Meir Velenski notes that as the Trump era gives way to the Biden presidency, weaknesses in FX and spread betting platforms are being exposed as orders are closed out due to inability to cope with volatility, leaving some retail traders out in the cold.
Should we take heed of the alarmist nature of ESMA’s view that the ‘disturbance’ of the FX market is a major reason for the FX Global Code to be brought in to crack down on spot FX? It is time to fight back against this draconian nonsense and to stand your ground.
“The marketplace is cram packed with FX firms vying for business and the only difference is how their personnel approach and handle the clients” says Meir Velenski
The corporate foreign exchange impact from the UK’s divorce from the EU can be mitigated.
The stock market can be a great venue for day traders to earn a living but it requires a commitment to continuously learn.