brokerage Archives - The Industry Spread

FastMatch Rebranded Euronext FX as Asian Expansion Continues

April 18, 2019 by Ricardo Esteves Leave a Comment Filed Under: Industry News Tagged: Asian market, brokerage, ECN, Electronic Communication Network, Euronext, Euronext FX, Euronext FX Tape, FastMatch, FX trading, Kevin Wolf, Q4 2019, Singapore, trading platform

FastMatch

The change reflects the evolution of FastMatch since it was acquired by Euronext in 2017 as part of the exchange’s strategy to diversify its top line and extend its “best execution” value proposition to an additional asset class.

Euronext has rebranded its FastMatch into Euronext FX as a new step in the further integration of its Electronic Communication Network (ECN) for Foreign Exchange (FX) trading.

FastMatch, perceived as an industry disruptor thanks to its award-winning technology, has gained a reputation for its speed and reliability. The FastMatch name will not disappear as it remains the brand name of the trading technology powering Euronext FX.

Kevin Wolf, CEO of Euronext FX, commented:

“This is an important milestone for our teams, which demonstrates Euronext’s commitment to further develop the FX franchise. Being part of Euronext has already helped Euronext FX grow its presence in Europe, access Euronext’s vast and diversified client base, both sell-side and buy-side, and benefit from Euronext’s reputation. Under the stewardship of Euronext, we successfully launched and developed the Euronext FX Tape, an innovative centralized streaming service providing real-time trade data to market participants, and recently announced a new matching engine in Singapore to better serve our Asian customers.”

Since joining Euronext, FastMatch gained operational maturity that comes with relying on the backing of a large and stable organization such as Euronext, which provides with a name and network that allows the new Euronext FX to acquire larger institutional clients and the exchange’s distribution network and infrastructure support.

FastMatch, now Euronext FX, has reported a strong rebound in operating performance in March with total trading volume coming in at $441.8 billion, which is 22 per cent higher from $363 billion in February 2019. The average daily volume in the spot foreign exchange market came in at $21 billion which 16 per cent higher on a month-on-month basis from $18.14 bn and is also highest since August 2017.

The strong performance is driven by the company’s expansion in the Asian market through the availability of its technology platform to become one of the dominant players in the market. The rapid Asian development has led the firm to set up a new matching engine in Singapore which will be fully operational in Q4 2019.

AUDUSD Under Pressure After Dovish RBA

April 16, 2019 by Nikolas Papas Leave a Comment Filed Under: Market News - European Open Tagged: Asian stocks, AUD/USD, Bitcoin, BOJ, Brexit, brokerage, Cryptocurrencies, ECB, EUR-USD, Iran sanctions, monetary policy, OPEC, RBA, trading platform

Asian stocks finished higher to the highest level in nine months, as investors cheer upbeat beginning of the US earnings season. In Japan, the Nikkei225 main index added 0,32 percent to 22,238 the highest since December 4th, 2018, the Hang Seng benchmark in Hong Kong finished 0.68 percent higher at 30,007. Chinese stocks are rallying, with Shanghai Composite finishing 1.55 percent higher at 3,226, and in Singapore, the FTSE Straits Times index finished 0.16 percent higher at 3,329. Australian equities have overcome early losses to end the day higher. The ASX 200 continues to trade on lighter volumes with school holidays and the Easter long weekend coming up. The ASX 200 index managed to lift by 26 points or 0.42% to 6277.4.

In commodities markets, Crude oil consolidates below five months high, at 63,27 area amid OPEC’s ongoing supply cuts, geopolitical uncertainty and the US additional sanctions on Iran. During the weekend, Russia’s Finance Minister Anton Siluanov said that Russia and OPEC might decide to boost production to fight for market share with the United States. On Friday, the weekly release of the Baker Hughes US rig counts showed a decline of 3 rigs giving a 1022 figure for the week ended on April 12. The near-term upside target for black gold is at the 65.00 figure, but I expect some profit taking to prevail as oil has reached overbought levels, the RSI trading above 70. Brent oil gives up some cents and trades today at $70.84/barrel near recent highs. Gold started the week lower and continues its trip south today at $1284, at the lowest levels since April 3rd. XAUUSD technical picture has turned negative, and now immediate support stands at 100-day moving average at $1284, which if broken can accelerate the downward move to 1260 and the 200-day moving average. Strong resistance now stands at the $1300 round figure and then at the 50-day moving average around $1307.

European session started slightly positive, tracking a strong session in Asia as strong Chinese macro figures supported sentiments. DAX30 is 0.13 percent higher to 12,034, CAC40 is 0.01 percent higher at 5,508 while FTSE100 in London is 0.07 percent higher at 7,442 and the FTSE MIB in Milan is trading 0.16 percent higher at 21,929.

In cryptocurrencies market, Bitcoin (BTCUSD) started the week on positive mood but lost over 80 dollars during US session at 5,064 and trades below the key 200-day moving average resistance at $5,147, making the daily low at 4,999. BTCUSD pair broke the $5,000 level the previous week but rebounded from $4,920 support area. Bitcoin will find support at the 50-day moving average at 4,089. Ethereum (ETHUSD) lost 5 dollars to 161, and it is placed nicely above the 100-day moving average, while Litecoin (LTCUSD) is also lower at 78.40. The cryptocurrencies market cap is currently above $160.0B.

On the Lookout: Bank of Japan Chief Kuroda, says that the central bank needs to bear in mind the possibility that prolonged low-rate policy may hurt financial intermediation. He further said that the BOJ would consider additional easing if momentum towards 2% inflation is lost adding that there is no need to change the 2% inflation target. The Reserve Bank of Australia (RBA) did discuss the impact of a rate cut while noting that inflation is likely to remain low for some time, but there is no strong case for a near-term move in interest rates.

Eric Rosengren, president of the Federal Reserve Bank of Boston, said that while the pace of economic expansion has slowed, overall, the US economy is doing quite well and the possibility of a recession is quite low.

Business conditions in the New York region improved more than expected in April, but growth remained “fairly subdued”, according to a survey released by the New York Fed. The Empire State manufacturing index rose to 10.1 from 3.7 in March, surpassing expectations for a reading of 6.0. Its new orders index rose to 7.5 this month from 3.0 the month before, while the shipments index increased to 8.6 from 7.7.

In the macro calendar from the Americas today, we have the Canadian manufacturing sales at 12:30GMT, followed by the US capacity utilization and industrial figures due at 13:15GMT. New Zealand’s GDT price index data that will be published around 14:00GMT. Oil traders will await the release of the US API weekly crude stocks data that will be released at 2030GMT.

AUDUSD Hourly (H1)

Trading Perspective: In Forex markets, US dollar consolidates around 96.50, while AUDUSD is trading 0.35 percent lower at 0.7145 as RBA April meeting’s minutes was widely read as dovish, and the likelihood of near term rate hike is low. Kiwi is trading 10 pips lower at 0.6756.

GBPUSD The pair failed to break above the 1.31 area and continues the consolidation around 1.3085. On the downside, major support will be found at 1.2975 at the 200-day moving average while solid protection can be found at the 100-day moving average around 1.2942. On the flipside, immediate resistance stands at 1.3195 the high from previous week session, and from there major resistance can be found at 1.3232 while 1.3382 the yearly high will be met with strong supply.

In GBP futures markets open interest increased 3.7K contracts to their open interest positions on Monday, reaching the third build in a row. Volume, instead, dropped by nearly 29.5K contracts following two consecutive advances.

EURUSD is trading in record low range, just 10 pips between 1.13 and 1. The pair made the daily high at 1.1320 and the low at 1.1297. Euro holds above the 50-day moving average and now is targeting the 100 DMA at 1.1348. Immediate support can be found at the 50-hour moving average around 1.1287, and further bids will emerge at 1.1278 and the 100-hour Moving average. As Michael Moran mentioned yesterday, speculative EUR shorts continue to grow. The latest COT report (week ended 9 April) saw speculative EUR short bets increase to -EUR 102,200 bets from the previous week’s -EUR 99,200.

EURO remains in negative mood following recent poor figures in Eurozone. In fact, recent disappointing readings in the region somehow confirm that the slowdown in the bloc and the ‘patient-for-longer’ stance from the ECB could be among us for longer than expected.

In Euro futures markets, open interest shrunk by nearly 1.9K contracts on Monday from Friday’s final 500,343 contracts, according to advanced figures from CME Group. Volume followed suit and dropped by around 83.7K contracts.

USDJPY: Same story here as the pair is trading in just 14 pips trading range, having hit the low at 111.85 and the high at 112.02. Major support for the pair stands at 111.51 the 200-day moving average and then at the 111 round figure if the pair manages to break below the 100-day simple moving average at 111.10. Immediate resistance for the pair stands at 112.10 the March 2019 high.

Open interest in JPY futures markets increased for the fourth straight session on Monday, this time by more than 3K contracts. Volume, instead, shrunk by almost 38.7K contracts after two consecutive daily builds.

USDCAD is the winner of the day, as it rebounds from yesterdays low at 1.3331 to 1.3378 as oil prices retreat from recent highs. The pair will find immediate support at the 100-day moving average around 1.3322 while extra support stands at 1.3192 and the 200-day moving average which if breached will drive prices down to 1.31 key support. On the upside, immediate resistance stands at 1.34 a break of which can escalate the rebound towards 1.3430.

USDCAD Hourly (H1)

Nikkei Outperforms, Traders Eye more US Earnings

April 15, 2019 by Nikolas Papas Leave a Comment Filed Under: Market News - European Open Tagged: Asian stocks, banks, Bitcoin, Brexit, brokerage, Cryptocurrencies, ECB, EUR-USD, Iran sanctions, JP Morgan, JPMorgan Chase, monetary policy, RBA, trading platform, Wells Fargo

Asian stocks finished in positive tones to the highest level in nine months, as investors follow the gains from Wall Street indices on Friday helped by the upbeat beginning of the US earning season by JP Morgan and Wells Fargo. In Japan, the Nikkei225 main index added 1.37 percent to 22,169 the highest since December 4th, 2018. The Hang Seng benchmark in Hong Kong finished 0.02 percent higher at 29,914. The Shanghai Composite underperformed for one more day, finishing 0.34 percent lower at 3,177, and in Singapore, the FTSE Straits Times index finished flat at 3,329. Australian equities traded in a narrow range of 20 points on Monday, most of which was spent in negative territory. A late rebound helped the index to end with small gains at 6,347. Even though sellers had the edge over their counterparts, momentum was limited as the market commenced a holiday-shortened week and a month-long Federal Election campaign.

In commodities markets, Crude oil consolidates at a five-month high, around 63,50 area amid OPEC’s ongoing supply cuts, geopolitical uncertainty and the US additional sanctions on Iran. During the weekend, Russia’s Finance Minister Anton Siluanov said that Russia and OPEC might decide to boost production to fight for market share with the United States. On Friday, the weekly release of the Baker Hughes US rig counts showed a decline of 3 rigs giving 1022 figure for the week ended on April 12. The near-term upside target for black gold is at the 65.00 figure, but I expect some profit taking to prevail as oil has reached overbought levels, the RSI trading above 70. Brent oil started the week with bids and trades today at $71.34/barrel near recent highs. Gold started the week lower down to $1287, at the lowest levels since April 5th. XAUUSD‘s technical picture has turned negative, and now immediate support stands at 100-day moving average at $1285, which if broken can accelerate the downward move to 1260 and the 200-day moving average. Strong resistance now stands at the $1300 round figure and then at the 50-day moving average around $1307.

XAUUSD Hourly (H1) Chart

European session started slightly positive tracking a positive session in Asia due to sentiments supported by strong Chinese export figures. DAX30 is 0.02 percent higher to 12,000, CAC40 is 0.07 percent higher at 5,506 while FTSE100 in London is 0.03 percent lower at 7,429 and the FTSE MIB in Milan is trading 0.45 percent higher at 21,956.

In cryptocurrencies market, Bitcoin (BTCUSD) started the week on positive mood and trades at 5,147, fighting with the key 200-day moving average resistance at $5,189, making the daily low at 5,079. BTCUSD pair broke the $5,000 level the previous week and traded as low as $4,920. Bitcoin will find support at 50-hour moving average at 4,514. Ethereum (ETHUSD) also adds 3 dollars at 166, and it is placed nicely above the 100-day moving average, while Litecoin (LTCUSD) is also higher to 82.40.

On the Lookout: In China macro data, exports surged past expectations in March, rising 14.2% in US dollar terms from the previous year amid the ongoing trade dispute with the US, following a 20.8% drop in February. However, imports declined 7.6% compared to a 5.2% fall the month before. Analysts had been expecting exports to rise 6.5% and imports to edge up 0.2%.

IMF Director Christine Lagarde said on Thursday that the six-month delay of Britain’s exit from the European Union avoids the “terrible outcome” of a “no-deal” Brexit, but does nothing to lift uncertainty over the final outcome. RBA in its semi-annual check on Australia’s financial system said that overall household financial stress remains low, the health of the job market is key. It warned if unemployment were to rise there is a greater risk for mortgage defaults.

In Wall Street, first-quarter earnings season will continue, with results due from Goldman Sachs and Citigroup later in the day following impressive numbers from JPMorgan Chase and Wells Fargo on Friday.

In the macro calendar from Americas today we have the Bank of Canada (BOC) Business outlook survey which will be reported at 14:30GMT. Also, the speeches by the BOE MPC member Haskel and FOMC member Evans will grab some attention later today.

Trading Perspective: In Forex markets, US dollar is under pressure, AUDUSD is trading 0.04 percent higher at 0.7172 at a two-week high, after the cautious tone of the Reserve Bank of Australia during its bi-annual financial stability review last week. The central-bank downgraded growth forecasts and cited risks to trading partners and the global financial system. Kiwi is trading 15 pips higher at 0.6770 while the US dollar index is giving up 10 cents to 96.43.

AUDUSD Hourly (H1) Chart

GBPUSD: In Brexit front, the EU struck a final accord and offered a flexible Brexit deadline extension until Oct 31st to the UK, leaving doors open for an early exit if the PM May manages to clinch a Brexit deal.

The pair is in an attempt to break the 50-day moving average as it trades 0.21 percent higher at 1.3095 (low at 1.3068, high at 1.3105). On the downside, major support will be found at 1.2975 at the 200-day moving average while solid protection can be found at the 100-day moving average around 1.2942. On the flipside, immediate resistance stands at 1.3195 the high from previous week session, and from there major resistance can be found at 1.3232, while 1.3382, the yearly high, will be met with strong supply.

In GBP futures markets, open interest rose for the second session in a row on Friday, this time by more than 3.2K contracts. In the same line, volume rose once again by around 7.8K contracts.

EURUSD is adding 0.16 percent today at 1.1318. The pair made the daily high at 1.1320 and the low at 1.1297. Euro holds above the 50-day moving average and now is targeting the 100 DMA at 1.1348. Immediate support can be found at the 50-hour moving average around 1.1287, and further bids will emerge at 1.1278 and the 100-hour moving average. As Michael Moran mentioned earlier, speculative EUR shorts continue to grow. The latest COT report (week ended 9 April) saw speculative EUR short bets increase to -EUR 102,200 bets from the previous week’s -EUR 99,200.

In Euro futures markets, traders added nearly 7.5k contracts to their open interest positions on Friday, while volume increased by around 83K contracts.

USDJPY: The pair is trading higher today at 111,98 having hit the low at 111.87 and the high at 112.08. Major support for the pair stands at 111.51, the 200-day moving average, and then at the 111 round figure if the pair manages to break below the 100-day simple moving average at 111.10. Immediate resistance for the pair stands at 112.10, the March 2019 high.

Open interest in JPY futures markets and volume are rising for yet another session on Friday by around 15.1K contracts and almost 26.3K contracts, respectively.

USDCAD retreats from recent high to 1.3331 as oil prices retreat from recent highs. The pair will find immediate support at the 100-day moving average around 1.3322 while extra support stands at 1.3192 and the 200-day moving average which if breached will drive prices down to the 1.31 key support. On the upside, immediate resistance stands at 1.34, a break of which can escalate the rebound towards 1.3430.

Senior Level Strategic Appointments at Forest Park FX and FreemarketFX

April 12, 2019 by Karthik Subramanian Leave a Comment Filed Under: Industry News Tagged: brokerage, Brokers, Ed Anderson, freemarketFX, FX, FX trading, HiFX, Jake Gosheron, Price Market UK, trading platform, UK Director, XE.com Inc

Introducing Broker, Forest Park FX, Appoints Ed Anderson as UK Director

Forest ParkFX

The FCA-regulated introducing broker, Forest Park FX, has hired FX industry veteran Ed Anderson as its UK Director. London-based Ed Anderson joins Forest Park FX from Price Market UK where he was the head of Sales and Operations.

The change comes at a time when the company is looking to strengthen its position as one of the established IB service providers in Europe. Forest Park FX owner Justin D. Hertzberg thinks that the growth in business is derived and is becoming more reliant on good relationships than ever before, and Ed Anderson’s strong experience will help the company in that direction.

“Ed brings a wealth of knowledge and experience to Forest Park FX that will both support and help us grow our business globally. With his strong relationships, Ed will help us to capitalize on what lies before us. I’ve had the pleasure of working alongside him for many years and am thrilled to now be working with him to grow the Forest Park FX brand in Europe.”

Anderson’s career is spread over three decades in the FX industry and held many senior-level roles in the industry. Prior to Price Market UK, he was Chief Sales Officer for FxPro UK and played an instrumental role in the establishment of the Dubai DFSA-regulated entity, FxPro MENA.

Anderson commented on his appointment:

“In a constantly changing regulatory environment, Forest Park FX has a plethora of services that assist clients and partners to be more successful in the financial markets. I look forward to maximizing the growth potential of Forest Park FX.”

freemarketFX Appoints Jake Gosheron as Head Of Partnerships.

freemarketFX

freemarketFX, the operator of a member exchange currency platform has added Jake Gosheron as its Head Of Partnerships.

Gosheron started with the firm in April of this year and is based in London, United Kingdom. He joins freemarketFX from XE.com Inc and HiFX

Gosheron joined the foreign exchange (forex) focused firm in April of this year and is based in London, United Kingdom. To take on this new role with freemarketFX, he ended his tenure with XE.com Inc where he was the Strategic Partnership Manager, which he held for just over a year. Prior to this, he was with HiFX as Partnerships & Alliances Consultant- Strategic Partner & Affiliate Services.

FlexTrade Systems Partners with OpenFin to Deliver Desktop Interoperability to Improve Workflow Management of Buy-Side Clients

April 10, 2019 by Karthik Subramanian Leave a Comment Filed Under: Industry News Tagged: Andy Mahoney, brokerage, Capital Markets, financial institutions, FlexNOW, FlexTrade, FlexTrade Launches EMS, Flextrader, HTML5, investment, Openfin, risk management, trading platform

FlexTrade

FlexTrade Systems, the global leader in broker-neutral, execution and order management system provider, has partnered with OpenFin, the leading provider of HTML5 runtime technology for the financial industry.

As per the statement issued, the partnership will provide interoperability meaning ability to use each other computer systems or software to exchange and make use of information. The partnership also aims to provide improved workflow management for buy-side traders using the technology FlexTRADER and its cloud EMS FlexNOW.

The clients of FlexTrade will able to integrate third-party vendor applications which have already been deployed on the OpenFin OS into their workflows. This allows the company’s customer to select the best application for their daily workflows, as well as better navigate complex markets. The partnership will also see FlexTrade rolling out the new desktop application to its clients faster.

Commenting on the partnership, Andy Mahoney, Head of Sales at FlexTrade UK said:

“FlexTRADER has operated an open architecture model for many years, ensuring traders have the data and workflows they need right at their fingertips.”

“OpenFin is the next natural step for this architecture to evolve by providing an interoperability layer connecting FlexTRADER to complementary third-party applications and data, with minimal technology overhead and seamless upgrades.”

CEO of OpenFin Europe, Adam Toms commented:

“Inefficient trader workflows hamper productivity and introduce an unnecessary level of operational risk. FlexTrade is pioneering change on the buy-side trader’s desktop, and we are delighted to partner with them on this journey to build the next generation of financial desktops.”

“Jointly, we empower traders to interact with the market in the way they prefer, with unprecedented levels of functionality and performance, accessing applications they need quickly, easily and securely, and without additional deployment costs.”

Deutsche Börse AG to Acquire Axioma for $850 Million, To Create Index Analytics Business

April 10, 2019 by Karthik Subramanian Leave a Comment Filed Under: Industry News Tagged: Axioma, brokerage, Capital Markets, DAX, Deutsche Börse AG, General Atlantic, regulators, risk management, Sebastian Ceria, STOXX

Deutsche Börse AG

German exchange operator, Deutsche Börse AG is buying Axioma, an analytics specialist company for $850 million, and will be merging it with its index businesses to form a new index analytics company.

As a part of the deal agreement, General Atlantic will be taking 19 per cent stake in the new company for $715 million, Deutsche Börse will own 78 per cent and rest 3 per cent will be held by Axioma management for reinvesting around $105 million.

The US-based Axioma will be merged with Deutsche Börse’s index businesses, Stoxx, and Dax in a new company with a total valuation of EUR 2.6 billion and will be led by Axioma current CEO Sebastian Ceria.

The exchange in its statement said that Axioma will be a good fit with its index business and the combined entity will help in creating a buy-side intelligence player and is expected to create an annualised pre-tax run-rate synergies of around EUR 30 million by the end of FY 2021.

Deutsche Börse’s Stoxx business generated around €144 million in sales in 2018 and EBITDA of €100 million.

Axioma in its statement said that it is uniquely equipped to address the emerging trends that are reshaping the investment management, including a shift to passive, demand for smart beta and transition towards index customisation using technology.

Axioma was founded in 1998 and provides a multi-asset class portfolio and risk management software. It claims to have more than 400 assets managers, sell-side participants and hedge funds as customers. In 2018, the company generated $100 million in revenue and had 240 employees under its roll.

Sebastian Ceria commented:

“The combination of Stoxx’s indexing expertise with Axioma’s best-of-breed analytical capabilities in risk management, portfolio construction and performance attribution is expected to result in strong near-term revenue synergies and creation of a platform for future growth.”

The deal is expected to be close in the third quarter of 2019 and is subject to different market regulators.

ECB and FED on Spotlight Today

April 10, 2019 by Nikolas Papas Leave a Comment Filed Under: Market News - European Open Tagged: AUD/USD, Bitcoin, Brexit, brokerage, Cryptocurrencies, ECB, ECB Interest Rate, economy, EUR-USD, FED, FOMC, Iran sanctions, monetary policy, Sino-U.S. trade talks, trading platform

Asian stocks finished on a negative ground, as investors turned cautious after IMF cut its GDP prediction for the third time in the last six months to the lowest since 2009, and Brexit developments. US President Donald Trump also threatened to impose tariffs on $11 billion of European Union (EU) imports as retaliation on what he claims to be unfair subsidies to Airbus.

In Japan, the Nikkei225 main index added 0,53 percent lower to 21,687, the Hang Seng benchmark in Hong Kong finished 0.31 percent lower at 30,060. The Shanghai Composite was 0.20 percent higher at 3,246 and in Singapore, the FTSE Straits Times index finished 0.04 percent lower at 3,320. Australian equities recovered from morning’s lows to finish flat on Wednesday for the second session. The ASX 200 was down as much as 0.36 percent this morning; however, gains from the big banks and gold miners helped offset the losses.

XAUUSD Daily Chart

In commodities markets, Crude Oil rally is intact at a five-month high and holds recent gains above 64, supported by OPEC’s ongoing supply cuts, geopolitical uncertainty and the US additional sanctions on Iran. The near-term upside target is the 65.00 figure, but I expect some profit taking to prevail as the black gold has reached overbought levels. Brent oil started the week with a gap up and trades today at $70.80/barrel some cents away from the recent highs. Gold rebounded yesterday above $1300 at two weeks high, supported by escalating geopolitical tensions concerning Tripoli, the Libyan capital. XAUUSD technical picture is positive, and now immediate support stands at 50-hour moving average at $1300, which if broken can accelerate the downward move to 1293 and the 200-hour moving average. Strong resistance now stands at the $1307, the 50-day moving average, expect the bears to defend $1307 with full force.

European session started in easy tones as the Brexit deadline for leaving the European Union is getting closer and investors are awaiting Mario Draghi’s comments on Eurozone growth prospects. DAX30 is 0.18 percent higher to 11,869, CAC40 is 0.12 percent higher at 5,442 while FTSE100 in London is 0.15 percent lower at 7,414 and the FTSE MIB in Milan is trading 0.08 percent higher at 21,694.

In cryptocurrencies, bitcoin (BTCUSD) consolidates above the 5,000 mark, and the key 200-day moving average resistance is at $5,225, making the daily high at 5,271. Bitcoin will find support at 50-hour moving average at 4,514. The rally in BTC triggered bids across the industry with Ethereum (ETHUSD) outperforming today, trading now at 181 and Litecoin (LTCUSD) gains 2 dollars to 88.95.

On the Lookout: In its 2019 World Economic Outlook, the International Monetary Fund slashed its prediction for the rate of growth in global GDP in 2019 by 0.4 percentage points to 3.3% and that for 2020 by 0.1 percentage points to 3.6%.

EU leaders for one more time are set to meet to discuss and decide on whether to grant the UK another Brexit extension and, and in that case, for how long. The US inflation figures, FOMC minutes and the ECB meeting are key events later that will keep investors busy.

Key upcoming events:

10/04/2019 ECB Interest Rate Decision

10/04/2019 Emergency EU Council Meeting

29/03/2019 (12/04/2019) UK leaves the European Union

18/04/2019 Dissolvement of current EU Parliament

Trading Perspective: In Forex markets today most majors are sticking to tight trading ranges, AUDUSD is trading 0.35 percent higher at 0.7148 near a two-week high, supported by positive comments from RBA Deputy Governor Debelle on economic growth and domestic labor market, while Kiwi is also higher at 0.67.53 tracking AUD and strong commodity prices led by oil. The US dollar index ranges in mid 96 awaiting FOMC meeting for clues about the US interest rate outlook.

AUDUSD Hourly (H1) Chart

GBPUSD consolidates between the 50 and 200-day moving average. Today the pair is trading flat at 1.3072 (low at 1.3038, high at 1.3079) as investors follow the Brexit news. On the downside, major support will be found at 1.2977 at the 200-day moving average while solid protection can be found at a 100-day moving average around 1.2929. On the flipside, immediate resistance stands at 1.3195 the high from previous week session, and from there, major resistance can be found at 1.3232 while 1.3382, the yearly high, will be met with strong supply.

In GBP futures markets, open interest traders added more than 1K contracts to their open interest positions on Tuesday, while volume extended the choppy performance, rising by around 41.2K contracts.

EURUSD yesterday managed to break into the three-month trading range for one more time. The pair is flat today 1.1266 just shy of yesterday high. The pair needs to break above 1.13 to give bulls a breath and then approach the 50-day moving average at 1.1329 to establish short term bullish momentum. Immediate support can be found at the 100-hour moving average around 1.1215. Comments from ECB and FOMC today will provide the cues for the next short-term trend for the pair.

On the Euro political front, headwinds are expected to emerge in light of the upcoming EU parliamentary elections, where the focus of attention will be on the potential increase of the populist and right-wing option among voters.

In Euro futures markets, open interest shrunk by more than 1.7K contracts on Tuesday, according to preliminary figures from CME Group. In the same line, volume reversed two consecutive builds and decreased by around 14.2K contracts.

USDJPY: The Bank of Japan on Monday cut its assessment for three of the country’s nine regions, the biggest number of downgrades in six years, suggesting that the hit to exports and factory output from slowing overseas demand is broadening, The pair is flat today at 111,16 having hit the low at 111.05 and the high at 111.24. Major support for the pair stands at 111 round figure if the pair manages to break below the 100-day simple moving average at 111.10. Immediate resistance for the pair stands at 112.06, the March 2019 high.

Open interest in JPY futures markets shrunk by around 3.8K contracts on Tuesday from Monday’s final 169,698 contracts, the first drop after four consecutive builds. On the other hand, volume increased by nearly 22K contracts.

USDCAD consolidates just above 1.33 having lost almost 70 pips earlier this week, erasing the gains of the previous week. It printed a fresh weekly low at 1.3292, and it is holding near the bottom, with the bearish tone intact. The pair will find support at 1.3285, and the 50-day moving average which if breached will drive prices down to 200-day moving average key support. On the upside, immediate resistance stands at the 100-hour moving average at 1.3346 while more supply for the USD will be met at the 200-hour moving average around 1.3360.

Advanced Markets Joins Liquidity Comparison Platform LiquidityFinder

April 8, 2019 by Karthik Subramanian Leave a Comment Filed Under: Industry News Tagged: Advanced markets, brokerage, Capital Markets, CMC Markets, financial services, Forex, FX trading, FXCM Omnibus, FXCM Pro, LiquidityFinder, LMAX Digital, Sucden Financial, trading platform

Advanced Markets

Advanced Markets, the wholesale liquidity, and technology provider has signed up with liquidity comparison platform, LiquidityFinder. The platform enables institutions to compare liquidity offering of the different liquidity provider and select one according to the business requirements.

Advanced Market’s STP platform offers FX market participants mostly the institutions to trade on prices streamed by over 10 FX banks in anonymous and transparent market structure. Through LiquidityFinder, Advanced Markets will now compete with other liquidity providers, those who are registered in the platform in the forex, CFDs, and the cryptocurrency markets and other OTC sectors.

LiquidityFinder is an FCA regulated search tool that provides information and matching service and helps brokers and institutional players to effectively choose liquidity partner, as per the business requirement, thus simplifying the old process. Further, Advanced Markets validates the service as a one-stop venue for comparing and directly contacting liquidity providers.

Commenting on the news, LiquidityFinder founder Sam Low said:

“Advanced Markets Group (AMG) is one of the very first companies in what is now called the ‘Prime of Prime’ space, having been offering true Agency eFX liquidity since 2006. The deep experience the company has gained in this time is shared with the broader market through its extensive range of educational materials, articles, blogs, and YouTube videos. All this content will be consolidated on their page on LiquidityFinder (as it is already on their own site), further enhancing the site’s educational value.”

Natallia Hunik, Global Head of Sales at Advanced Markets Group, added:

“We are pleased to be joining the LiquidityFinder portal, as this is the first directory of its kind that features players from B2B space. The FX Market is dynamic and complex, with a significant gap between the institutional and retail spaces that is not bridged. This gap has widened even further post credit-tightening. There is a lot of liquidity recycling going on, which doesn’t add value and introduces inefficiencies into the marketplace.”

Other liquidity providers which feature in LiquidityFinder are Sucden Financial, LMAX Digital, CMC Markets, FXCM Pro, FXCM Omnibus and IS Prime.

CFTC Report Shows Interactive Broker’s 25% Rise in Forex Funds in February

April 4, 2019 by Karthik Subramanian Leave a Comment Filed Under: Industry News Tagged: brokerage, Brokers, Capital Markets, CFTC, FX trading, Gain Capital, Interactive Brokers, OANDA, Retail Fx, RFEDs, TD Ameritrade, trading platform

CFTC

The Commodity Futures Trading Commission (CFTC) has released data of retail FX deposits at US brokerages on Wednesday. The report also includes the data of FCMs that are registered as Retail Foreign Exchange Dealers (RFEDs) and broker-dealers.

In the month of February, retail FX deposits at US brokerages increased by over $23 million, with the total coming in at $590 million, up by 4 per cent from $568 million reported in the previous month.

FX firms like Interactive Brokers, OANDA Corporation and TD Ameritrade witnessed an increase in Retail Forex Obligations during the month, whereas GAIN Capital reported a minor decline in its client’s assets.

After registering consecutive fall in market share, Interactive Brokers emerged as the best performer of the month overtaking TD Ameritrade. The market share rose by $13.7 million to $68 million, from $54 million at the end of January or 25 per cent month-on-month increase.

GAIN Capital’s client asset fell slightly by $106K to $248.2 million, which is marginal on the scale over a monthly basis. However, despite failing to gain much, the broker retained the title of largest FX broker in the United States, commanding a market share of 42 per cent.

Interactive Brokers, the largest US electronic brokerage firm, as measured by DARTs, surpassed TD Ameritrade as the US third largest holder of retail FX funds. Both the brokers have locked horns over the position number of times over recent months.

On the other hand, OANDA has also strengthened its position as the second largest by market share in the US with a total of 36 per cent share.

CMC Markets Releases Trading Update for FY 2019 Ahead of Results, Also Made Changes to its Board

April 3, 2019 by Karthik Subramanian Leave a Comment Filed Under: Industry News Tagged: brokerage, Capital Markets, CFDs brokerage, CMC Markets, David Fineberg, ESMA, ESMA regulation, FX trading, Grant Foley, Matthew Lewis, Peter Cruddas, trading platform

CMC Markets

Just ahead of releasing full-year results for FY 2019, CMC Markets has released a trading update on its overall performance during the year. The fiscal year of CMC Market ended on 31st March 2019.

In the update, the company noted that the financial performance of the company was heavily influenced by the implementation of the ESMA intervention measures on 1st August 2018. This measure greatly reduced the client trading activity and challenging market conditions in the fourth quarter of 2018 impacted revenue generation. The company expects CFDs and spread-bet revenue during the fiscal at £110 million which is almost 37 per cent lower compared to previous fiscal.

However, the company expects the drop in revenue should be around 20 per cent and not 37 per cent in FY 2019. In the statement, the company said:

“The impact of the new ESMA margin rules, which has resulted in retail clients trading less, utilising more of their cash to fund their margin requirements or needing to deposit more funds with CMC to trade at previous levels, is showing signs of stabilising.

“Since the introduction of the new rules, client money has remained strong, and active client and new client numbers have remained stable resulting in the Group having confidence in meeting the consensus FY 2020 outlook. We believe that the new ESMA regulations are good for this business and for the industry over the medium to long term.”

The final full year FY 19 financial results will be declared on 6th June 2019.

Along with the revenue forecast for FY 2019, the company announced a number of changes to its Board of Directors. Company Chief Operating and Financial Officer, Grant Foley resigned from the company after more than six years with the firm.

Grant Foley, Chief Operating and Financial Officer said:

“Having joined CMC ahead of preparations for the IPO, the business has transformed completely over the six years I have been CFO and COO. Now we have begun to see a stabilisation of client behaviour post ESMA, I feel the business is on a strong footing, and it is time to hand over to someone else to take the business forward on the next leg of its journey.”

The company has appointed Matthew Lewis, Head of Asia Pacific and Canada to the Board. David Fineberg, currently Group Commercial Director, has been appointed Deputy Chief Executive Officer with immediate effect.

Peter Cruddas, Chief Executive Officer of CMC Markets commented:

“Grant has been an integral part of CMC’s development over the last six years, including the 2016 IPO, and he leaves the Group in a strong position. I wish Grant the very best for the future, and I would like to thank him for doing an excellent job.”

“I am extremely pleased and excited for David in his new role, and I look forward to working alongside him to develop the business over the coming years. His insights and understanding of this business and our markets after 20 years at CMC are second to none, and he thoroughly deserves this new role.”