Financial markets Archives - The Industry Spread

Global Growth Worries Send Asian Stocks Lower

January 22, 2019 by Nikolas Papas Leave a Comment Filed Under: Market News - European Open Tagged: Asian stocks, AUDUSD, banks, Brexit, Capital Markets, economy, EURUSD, Financial markets, monetary policy, Sino-U.S trade, US-China trade, USDJPY

Asian indices dropped Tuesday as global growth worries are on the headlines again. Japan’s Nikkei225 index shed 0.5%, while Hong Kong’s Hang Seng lost 0.9% and Shanghai Composite index fell 0.7%, Australian stocks have snapped a five-session winning streak with the ASX 200 declining by 32 points or 0.5% to 5859. The Aussie dollar has also fallen to its lowest levels in a fortnight as it eased throughout the local session. Australian 10-year bond yields fell one basis point to 2.30%. Ten-year Treasury yields lost 3 basis points to 2.75%.

European indices started weaker today taking their cue from a downbeat session in Asia as the IMF cut its global growth forecast for 2019 to the lowest level in three years. FTSE100 in London is down 0.55% to 6,934, the DAX in Frankfurt is losing 0.49% to 11,084 and CAC40 gives up 0.29% to 4,855.

On the Lookout: International Monetary Fund (IMF) downgraded its forecasts for global economic growth to 3.5% in 2019 and 3.6% in 2020, down from 3.7% for both years previously as risks surrounding uncertainty in US-China trade relations persist along with a potential “no-deal” Brexit for the UK and EU.

There are monetary-policy decisions for the Bank of Japan on Wednesday, the Bank of Korea and the European Central Bank on Thursday.

The World Economic Forum, the annual gathering of global leaders in politics, business and culture, opens in Davos, Switzerland on Tuesday.

Trading Perspective: Global growth concerns continued to remain a drag on forex markets. EURUSD lost the bullish momentum yesterday as the price broke below the 50-day moving average at 1.1380. Demand can emerge at previous week low at 1.1350, but I expect more solid buying at monthly lows around 1.12670 area. On the upside, major resistance is at 1.1412 yesterday’s high and then at 1.1491 the previous week high. European macro news is disappointing, yesterday it was German PPI, in December fell by 0.4% on the month, and that was worse than the 0.2% decline that analysts were expecting. The November report showed a 0.1% increase in growth. The fall in PPI indicates that demand is weak, and that ties in with the other disappointing economic indicators that Germany has produced recently.

EURUSD Daily

USDJPY is trading in just 30 pips consolidative trading range as traders are indecisive at current levels. In the hourly chart the 100-hour moving average is the immediate support at 109.26 while more support the pair will find at 108 figure. On the flipside, the first resistance is at 109.78 the yesterdays high and then at 110.

AUSUSD is trading lower for the third session in the row hitting two weeks low at 0.7120. Negative macro news from China and the downgrade for global growth from IMF send investors to USD. The pair has trapped in descending channel in the hourly chart, and a break below 0.7115 would imply the end of the corrective bounce from end of year lows below 0.70. Immediate support is at 0.71, while more solid support can be found at previous monthly low at 0.7014. On the flipside, the first resistance is at 0.7161 and then at 0.7183 previous daily high.

AUDUSD H1

CFTC has Surprising Spoofing Rules

January 21, 2019 by Michael Volpe Leave a Comment Filed Under: Feature Articles Tagged: brokerage, CFTC, CFTC Regulations, commodities broker, derivatives, economy, Financial markets, risk management, SEC, trading platform

The Commodities Futures Trading Commission (CFTC) can charge a firm with violating spoofing related statutes even if no spoofing occurred.

The Futures Industry Association held its latest webinar entitled: “Spoofing, Surveillance, & Supervision.”

Attorneys from the law firm Drinker Biddle & Reath LLP made the presentation and noted that CFTC’s statute states that a firm can be charged with a spoofing violation if the firm did not properly supervise its traders, even if none engaged in spoofing.

The CFTC rule states, “Evidence of violations that ‘should be detected by a diligent system of supervision, either because of the nature of the violations or because the violations have occurred repeatedly’ is probative of a failure to supervise,” according to a slide in the webinar.

The rule departs from that of the Securities and Exchange Commission (SEC), which requires spoofing to occur before a firm can also be charged with a failure to supervise.

“Unlike the SEC’s rule on failure to supervise, which requires an underlying substantive violation in order to establish a failure to supervise,” the slide continued.

Spoofing occurs when a trader places orders which are not executed but are placed simply to drive the price of a security in a certain direction.

The anti-spoofing statute was part of the Dodd/Frank bill passed in 2010.

Furthermore, the exchanges followed with their own anti-spoofing rules, which the attorneys said largely mirrored that of the CFTC’s anti-spoofing statute.

The CME rule states, “Prohibits (among other actions) entering an order with the intent at the time of order entry, to cancel the order before execution or to modify the order to avoid execution,” according to another slide.

The ICE exchange “does not require the intent at the time of order entry only entering an order with the intent to cancel it,” according to the same slide.

The exchanges, the CFTC, ICE, and others, are also referred to as self-regulatory organizations (SRO).

This is because it is required by the SEC and the CFTC that all approved exchanges have a separate regulatory arm.

As such, a trader engaged in spoofing can face penalties not only from the exchange where the trades occurred but also with the regulatory body.

This occurred with 3 Red Trading, which was covered in the webinar.

Their principal, Igor Oystacher, was not only fined by the CEM but also by the CFTC, for his spoofing activities.

The attorneys also noted that the CFTC has been touting their non-prosecution agreements, as a means of encouraging traders involved in spoofing to come forward and expose their firms.

For instance, in July 2017, the CFTC entered into a non-prosecution agreement with three traders from Citigroup Global Markets; while the traders were named, they were spared punishment while the firm was fined $25 million.

“The message sent appears to perhaps incentivize traders being investigated for spoofing to point at their firm for failing to train and supervise them regarding spoofing.” Another slide noted.

While that is one way to look at it, this incentive can also be viewed as encouraging criminal behavior.

Law enforcement has a long history of making deals with criminals whose crimes are forgiven for their cooperation against another criminal.

In one notorious case, Sammy “The Bull” Gravano served only five years in jail despite admitting to involvement in nineteen murders in exchange for testifying against John Gotti.

While spoofing is not nearly as serious as murders, traders who rat on their firms in exchange for leniency do have their criminal activity wiped out as well.

US-Subsidiary of Monex Group, TradeStation to Launch Crypto Brokerage Platform Later this Year

January 15, 2019 by Karthik Subramanian Leave a Comment Filed Under: Industry News Tagged: Blockchain, brokerage, Cryptocurrencies, Cryptocurrency exchange, ErisX, Financial markets, investment, Monex Group, NASDAQ, TradeStation, trading platform

The US subsidiary of Japanese financial services major Monex Group, TradeStation has revealed its plan to launch cryptocurrency brokerage services in the country later this year with the brand name, TradeStation Crypto.

For the new crypto service, TradeStation will leverage on its expertise in the brokerage industry to address some of the critical concerns and weakness that the current cryptocurrency ecosystem faces. The company said in its statement.

The company has no specific timeline for the launch of the crypto services platform, but it has already applied for money service business registration with each state regulator. The money transmittal license (MTL) allows a crypto firm to offer both the crypto-to-crypto and fiat-to-crypto trading pairs.

For Monex Group, it is not the first encounter with the cryptocurrency products, and it has earlier saved the hacked-crypto exchange CoinCheck to remain in business. The brokerage has announced in July last year that it will try to gain a foothold in the US cryptocurrency market with dedicated services offering and will mainly cater to the institutional class investor. Then it said that it would try to build a base on the top of 2 million client accounts which it holds worldwide.

Monex Group has acquired hacked-cryptocurrency exchange, Coincheck in April 2018 after it was hacked of $534 million in January, forcing it to near shut-down. Monex Group has also invested in soon to be launched cryptocurrency exchange ErisX, which has also raised over $25 million from investors like Fidelity Investments and Nasdaq Ventures.

Commenting on the news, President of TradeStation Group, said:

“We believe investors and traders are seeking ways to access and trade cryptocurrency products similar to the way they trade traditional capital markets – and through a trusted and familiar brand and company. Our focus will be to provide the tools and services that serious traders require to trade across multiple asset classes, including crypto.”

FINRA Board Looks for Diversity

January 11, 2019 by Michael Volpe Leave a Comment Filed Under: Feature Articles Tagged: Capital Markets, economy, FCA, financial institutions, Financial markets, FINRA, FINRA 360, monetary policy, NASD, NYSE, regulators, risk management

In the coming year, board recruitment and diversity will be critical for FINRA, the Financial Industry Regulatory Authority.

Marcia Asquith is FINRA’s executive vice president of Board and External Relations, and she was the latest guest on FINRA’s podcast, Unscripted.

Asquith talked about some of the most important board accomplishments of 2018 and talked about the goals for 2019.

The FINRA board is made up of ten industry governors, twelve public governors, and Robert Cooke, the CEO of FINRA.

Asquith said public governors are those folks who are outside the industry.

Within the industry, the board includes three small firm governors, one mid-size firm governor, three large firm governors.

Each of those governors is elected from their peer group: be it small, mid, or large firms.

There all also three more industry board members who are appointed.

A small firm has less than one-hundred and fifty brokers, mid-size firms have 150-499 brokers, and large firms have more than that.

Asquith noted, “In 2019 we’re going to lose four board members.”

Asquith continued, “We’re losing some diversity; we’re losing three women in this class, and we’re also looking at racial and geographic diversity.”

The governors from outside the industry have included all sorts of executives and even one president, Asquith noted.

FINRA was formed in 2007 when the regulatory arms of the NASD and the NYSE merged, but before that, the NASD board included Gerald Ford, the 38^th President of the United States.

When asked if former Presidents Barack Obama and George Bush would be considered, Asquith joked, “We’re very particular, but we would talk to them.”

Jimmy Carter, the 39^th President, and Bill Clinton, the 42^nd President, are the other two living former Presidents.

Asquith said that whereas the CEO, Robert Cooke, and other FINRA executives are responsible for the day to day operations of FINRA, the board’s job is to oversee the executives.

In that role, Asquith said that in 2018, the board emphasized overseeing FINRA 360.

“2018 certainly was the year of ensuring that FINRA 360 and the progress that we made through that initiative was institutionalized.”

FINRA 360 began in early 2017; it is “a multi-year initiative to process and act upon feedback about how FINRA could do better. Cook has solicited feedback at every turn – internally, from FINRA member firms, from investors and investor advocates and other stakeholders.” According to FINRA’s site.

Cooke was on Unscripted talking about FINRA 360 in November 2017.

Going forward, Asquith said, “In 2019, the board will be focused a lot on board recruitment.”

Swissquote Posts Record Revenue and Profits in 2018 on Back of Huge Market Volatility, Insulation from ESMA Regulations and Crypto Trading

January 10, 2019 by Karthik Subramanian Leave a Comment Filed Under: Industry News Tagged: Blockchain, brokerage, crypto trading, Cryptocurrencies, Cryptocurrency exchange, ESMA regulation, EU, Financial markets, Internaxx, investment, monetary policy, Swissquote, trading platform

Swiss bank and brokerage firm, Swissquote has announced its financial update for the year 2018. The company not only met the guidance issued in the first half of 2018 but also achieved a new milestone in its corporate history.

The company during the year has made a new record in terms of both revenue realisation and profits. The company has not posted the full year profit but has posted its top and bottom line figures for the second half of the year.

The total earnings during the year 2018 increased by 15 per cent year-on-year to CHF 214 million ($220 million) and pre-tax profits for the same period increased by 16 per cent on the yearly basis, which came in at CHF 53.5 million ($55 million). The results don’t include the figures from Internaxx, which was acquired last year and is pending regulatory approval.

Two major factors that led to the solid performance in 2018 is because of massive volatility across financial markets that helped in increased trading activity. And, another important factor was its insulation from the impact of new ESMA regulations. The group’s Swiss banking license allows it to higher leverage compared to other EU counterparts.

In 2018, a huge decline in the global stock market that led to fewer options with investors to hedge their losses, a sharp decline in commodity prices and lacklustre bond markets made the market extremely volatile with little help from risk-parity strategies.

The successful introduction of crypto trading also helped the company to boost its bottom line. Swissquote is also the first European online bank to offer crypto service and allowing to trade in cryptocurrencies on its platform for the past one-and-half years.

The full result is slated to be published on March 8th, and the company also expects that the pending regulatory approval for its Internaxx transaction will be issued by the first quarter of 2019. The year ahead also warrants solid results for the Swiss broking company due to market uncertainty and huge volatility.

Equiti Capital Reports Solid Turnover for Fiscal 2018, Turnover Increased by 285% to £17.95 Million

January 9, 2019 by Karthik Subramanian Leave a Comment Filed Under: Industry News Tagged: brokerage, Brokers, Capital Markets, economy, EQUITI GROUP, Financial markets, FOREX.com, FX trading, investment, Retail Fx, trading platform

UK-based FX and CFD broker, Equiti Capital UK Ltd., previously known as Divisa UK has ended fiscal 2018 with a bullish note, as it managed to quadruple its turnover compared to 2017. The group disclosed its fiscal 2018 annual report and financial statement on Tuesday.

The group maintains a financial year of April-March, and in the 12 months period ended March 31, 2018, the brokerage has reported a turnover of £17.95 million. It is an increase of 285 per cent compared to the company’s 2017 fiscal year, in which it achieved a turnover of £4.67 million.

With the increased turnover, the company’s cost of sales climbed more than fivefold from £1.17 million in 2017 to £7.37 million in 2018, an increase of 529 per cent. The gross profit during the year came in at £10.58 million, an increase of 203 per cent year-on-year from £3.5 million in 2017.

Despite achieving strong revenue growth, total comprehensive income after deducting the tax component came in at negative £607,858, compared to the profit of £60,613 in 2017.

Commenting on the financial results, Brian Myers, the CEO of Equiti Capital said:

“2018 was a hugely positive period of growth and investment for Equiti Capital UK. The circa 400% increase in turnover from 2017 was the start of the return from significant investments made in key areas throughout last year.

“The talent we were able to acquire in 2018, plus the foundations that were laid in operations and product, has put us in a fantastic position to continue our strong trajectory in our group Brokerage and Retail business lines.”

During the year, the firm has secured 100 per cent regulatory approvals for its acquisition. The company in its statement has also shown the confidence of successfully navigating through the new regulatory regime with EU and UK and will able to achieve distinct competitive advantage in the next few years.

Gain Capital’s FOREX.com Posts December 2018 Trading Volume Figures

Gain Capital’s retail forex trading arm, FOREX.com has reported its December 2018 operational metrics on Tuesday. In the last month, the firm reported a 17.7 per cent increase in trading volumes compared to December 2017.

But, on a monthly basis, the figure is 7 per cent lower to $192.6 billion, when compared to the November figure. The average daily volume during the month increased by 2.1 per cent compared to the previous month.

Despite, upbeat trading volume figures, the number of active clients declined during the month by almost 7 per cent on a yearly basis to 123,171 active traders. The Futures trading were sharply higher during the month, an increase of 24 per cent when compared to December 2017 figures. The clients of GAIN Capital traded 641,094 futures contracts in full December month, a decrease of 2 per cent on a month-on-month basis.

Euro Rally Stops at 1.1484

January 8, 2019 by Nikolas Papas Leave a Comment Filed Under: Market News - European Open Tagged: Asian Markets, banks, Brexit, Capital Markets, economy, EUR-USD, Financial markets, foreign exchange, ifo, monetary policy, regulators, Sino-U.S., trade war

Asian stock indices ended the day mixed with Japan’s Nikkei up 1%, Hong Kong’s Hang Seng Index was up 0.2%, and the Shanghai Composite was down about 0.2%. The ASX 200 index finished the session 39 points or 0.7% higher to 5722.4 after initially starting the day in the red. The index has also managed to finish at its best levels in more than five weeks.

European equity markets started the trading day in positive tones with gains across the major European indices, DAX is adding 0.64%, CAC40 is gaining 0.80%, and FTSE in London is up 0.65% at 6862.

Gold extended the Asian session retracement slide from the $1295 horizontal zone and remained under some selling pressure and now is trading at $1283 per ounce.

On the Lookout: The United Kingdom Halifax House Prices (MoM) came in at 2.2%, above forecasts (0.2%) in November. Germany Industrial Production n.s.a. w.d.a. (YoY) is down to -4.7% in November from previous 1.8%.

Ifo research Institute in Germany came up with its latest report on European economic activity:

“Economic activity in the euro area is slowing down. In Q4 2018 and the first two quarters of 2019, the economy is only expected to grow by 0.3% respectively, according to the latest forecast by the three research institutes Ifo (Munich), KOF (Zurich) and Istat (Rome). This development will mainly be due to domestic demand. The growth rate for 2018 as a whole is 1.9%. The production losses of German car manufacturers weighed on the Eurozone in Q3 2018. Industrial production in the Eurozone is expected to remain unchanged in Q4 2018, and to subsequently grow twice by just 0.2% quarter-on-quarter.

The inflation rate will reach 2.0% in the fourth quarter, which is close to the rate of just below 2.0% targeted by the European Central Bank. It will subsequently edge back down to 1.9% and 1.8% in the first two quarters of 2019 respectively. Downside risks to economic growth will increase. These risks include Brexit, escalating trade wars, the vulnerability of emerging markets and financial market volatility. The effects of the US Federal Reserve’s normalisation of monetary policy on the world economy also remain difficult to assess.”

Trading Perspective: The recent EURUSD rally stopped at the key 100-day moving average at 1.1484 and retraced back to 1.1431 figure. Traders continue to look for developments from the Sino-US ongoing trade talks in Beijing, with headlines expected to hit the wires at some point later today. Immediate support for the pair is the 2019 low at 1.1309 and then the 2018 low at 1.1214. On the flip side, yesterday’s top at 1.1484 is the first resistance and then 1.1502 high from November 2018.

Carsten Brzeski, chief economist at ING, points out that Germany’s industrial production fell by 1.9% month-on-month in November, while the October drop was revised downwards to -0.8% MoM, from -0.5% MoM.

“On the year, industrial production is now down by 4.7%. The drop in industrial production was widely spread across all sectors.”

“At face value, today’s industrial production data has clearly increased the risk of a technical recession in Germany in the second half of 2018.”

“Watch out for tomorrow’s trade data. Another disappointment, combined with the high inventory build-up in 2Q and 3Q, would clearly increase the likelihood of a technical recession.”

GBPUSD is trading around the 50-day moving average at 1.2774, after it failed to breach 1.28. The pair is very vulnerable to any incoming Brexit-related headlines, UK Junior Brexit Minister Callanan saying that Article 50 will not be extended. His comments come after the UK Brexit Minister Barclay said that he had no discussions with the European Union (EU) to extend Article 50. The technical picture for the pair has improved, and an attempt to previous weekly high at 1.2815 can’t be ruled out. First support for the pair is 1.2707 previous weekly low

FX And Equity Markets Trade Mixed on Cues from Wall Street and Europe

January 7, 2019 by Karthik Subramanian Leave a Comment Filed Under: Market News - US Open Tagged: banks, Brexit, Capital Markets, economy, EUR-USD, FED, Financial markets, foreign exchange, Jerome H. Powell, monetary policy, regulators, Sino-U.S., trade war, trading

Investors remain divided on the market outlook of the near future as Sino-U.S trade talks and Brexit deal deliberation begins in UK Parliament today.

Summary: Global market today is experiencing difficult shades of investor sentiment and market performance in the equity and forex market scape. The trading session began for the day with increased risk appetite in the market on cues from Wall Street which saw bullish price action in equities following positive US NFP data, and Fed Chair Jermoe Powell’s comments which hinted at the possibility of a pause in the Fed’s 2019 rate hike plans significantly boosting investors risk appetite. Asian markets also saw lingering cues from the Chinese central bank’s policy modification to accommodate small business. Both these factors improved investor sentiment across Asian markets greatly in both equity and forex space as investors looked forward to key events – Sino-U.S representatives meeting face to face for trade negotiations and UK parliament meeting for a 5-day session to vote on PM May’s Brexit deal.

However European market hours saw mixed performance in the forex market and bearish performance in equity markets as investors exercise caution owing to mixed macro data outcome and French protests which escalated to new heights this weekend which inspired some level of safe-haven demand in the market.

Precious Metals: Gold and Silver traded positive since the trading session began for the day as Greenback weakened in broad market over Powell’s comments on a possible pause in Fed rate hike. Also, investors are divided over their opinion on geopolitical events with few investors fearing that Sino-U.S. talks and Brexit could have a dovish outcome and wish to avoid volatility keeping demand for safe-haven assets aloft. The European market is also seeing dovish sentiment over escalating French Yellow vest protest which on last weekend saw participants attack government property which also adds to demand for safe-haven assets.

EM FX Asia: While risk appetite was high in the market ahead of Sino-U.S. trade talks, investor’s expectations for positive outcome in Sino-U.S trade negotiations and Powell’s comments during his speech on Friday weakened demand for the greenback in the broad market, boosting Asian currencies. Indonesian Rupiah was leading the gains with a 1.9% increase in value followed by Korean Won and Indian Rupee with 0.8% & 0.7% increase in value respectively.

USD/JPY: USD/JPY pair traded positive in Asian market hours despite broad-based USD weakness as the overall market saw improved risk appetite as investors looked forward to the start of Sino-US trade negotiations with representatives set to meet face to face for a two–day session. However, a decline in US futures in European market hours combined with prevalent demand for safe-haven assets and USD’s weakness which slowly crept back into the pair helped Japanese Yen gain the upper hand as trading session moved well into European market hours.

On the Lookout: Moving ahead with the trading session for the week, the immediate focus of investors lies on Sino-U.S. trade negotiations which will conclude tomorrow followed by Brexit proceedings in UK parliament. But investors will also be on the lookout for Bank of Canada’s Monetary Policy update, US home sales data & CPI data for short-term profit opportunities. The outcome of Sino-U.S. talks could be positive or negative depending on how key issues – intellectual property theft and U.S. ban on Chinese products are addressed with negative outcome expected to influence a bearish rally in equity and forex space while positive outcome will likely give bulls some momentum, but upside is expected to remain limited as traders await Brexit update.

Trading Perspective: As global investors stand divided on the opinion of the near future outlook for risk assets, safe-haven demand will remain relatively high in the market, but news and macro data-driven price action is expected to keep major risk assets highly volatile in the week ahead.

EUR/USD: The pair traded positive in Asian hours on cues from Wall Street and broad-based USD’s weakness over Powell’s comments. But increased risk-averse trading in European market hours has caused the pair to decline from intra-day highs erasing gains made in the early trading session. EU area macro data saw a mixed outcome but failed to have any meaningful impact on the Euro’s price action. Investors will now look to ISM Manufacturing PMI for short-term profit opportunity in American market hours, but the pair lacks major breakout trigger which will depend on tomorrow’s headlines post completion of Sino-U.S. trade talks.

GBP/USD: The British pound is trading well near last week’s high’s in range-bound price action as price action is dominated by broad-based USD’s weakness over Powell’s comments and a risk-on environment over two-day Sino-U.S. trade talk which began today. While investor sentiment surrounding pair is positive, it is mostly due to USD’s price dynamics, and investors continue to look at Brexit headlines for a solid breakout trigger. The pair, for now, remains stable above 1.27 handle, however, given negative outlook surrounding PM May’s deal in UK parliament, a bearish breakout looks likely which will see the pair back below mid 1.26 handle.

USD/CAD: Canadian Loonie gained significant ground against US Greenback today owing to multiple factors like the rebound in crude oil price which saw both spot and futures market gain by 1%, and broad-based USD’s weakness following Fed Chair Jerome Powell’s comments last Friday. The pair could continue to see increased gains if ongoing Sino-U.S trade talks in China has a positive outcome when the talks conclude tomorrow which as it is will greatly improve risk appetite in the market while also improving mood in the oil market as China is one of the biggest crude oil importers in the world.

Eurex Reports +23% Growth in Derivatives Trading in December 2018

January 5, 2019 by Ricardo Esteves Leave a Comment Filed Under: Industry News Tagged: brokerage, Capital Markets, CFTC, derivatives, Deutsche Börse Group, economy, Eurex, FCMs, Financial markets, financial services, investment, OTC FX, trading platform

Eurex, Europe’s largest derivatives exchange and part of Deutsche Börse Group, has reported 174.6 million traded contracts in December 2018. The figure is a 23 percent jump from the 142.4 million contracts in 2017 and is attributable to the overall positive development, according to the company.

The overall growth in trading volumes on Eurex includes European equity index derivatives which have increased by 38 percent from 69.8 million in 2017 to 96.0 million in 2018. European equity derivatives trading grew by 52 percent, boosting from 20.5 million traded contracts in 2017 to 31.2 million in 2018.

The company also announced that Eurex Repo, a provider for international financing in the secured money market business (repo and securities lending), saw an overall increase of 7 percent in average outstanding volume in the Repo market in comparison to December 2017.

Its energy exchange, European Energy Exchange (EEX), experienced a significant increase in its power derivatives markets by 17 percent to 273.7 TWh (December 2017: 234.5 TWh).

In December 2018, Eurex added Wolfgang Eholzer as Chief Technology Officer. The appointment, which is effective as of January 2019, will lead to a focus on the company’s IT strategy and on Eurex‘s trading system T7. Having joined Eurex in 2007 as head of the Eurex Trading Technology Roadmap, which resulted in the delivery of interfaces for order management and market data, Eholzer had previously worked for Deutsche Börse Group‘s IT delivery organization since 1998.

Eurex has recently welcomed Flow Traders as FX liquidity providers for the Eurex FX Futures products further deepening liquidity available to investors throughout the whole range of monthly and quarterly deliverable FX Futures as well as in the non-deliverable Rolling Spot Futures.

In December 2018, Eurex Clearing, one of the leading CCPs globally wholly owned by Deutsche Boerse, has started offering clearing services for swap transactions to clients of futures commission merchants (FCMs) domiciled in the United States, following authorization from the Commodities Futures Trading Commission (CFTC).

The company has decided to expand its Partnership Program to cover the repo and OTC foreign exchange (OTC FX) segments, which are complementary to the OTC interest rate derivatives segment. As part of its partnership program, Eurex Clearing shares governance and economics with the most active program participants, including Commerzbank, Deutsche Bank, J.P. Morgan and Morgan Stanley.

Deutsche Börse And Boerse Stuttgart Report 2018 Trading Volumes

January 3, 2019 by Ricardo Esteves Leave a Comment Filed Under: Industry News Tagged: banks, Boerse Stuttgart, Capital Markets, CME group, deutsche boerse group, financial institutions, Financial markets, financial services, investors, risk management, trading, trading platform, Xetra

Deutsche Börse has announced its cash market achieved an order book turnover of €1.72 trillion in 2018. The figure is the highest trading volume since 2008 and an increase of 17 percent compared to the previous year, €1.47 trillion.

The order book turnover is attributable to Xetra, with €1.57 trillion, Börse Frankfurt, with €40.11 billion, and Tradegate Exchange, with €105.81 billion.

Trading volumes in December 2018 amounted to €116.1 billion, compared to €118.0 billion in the previous year. Of this amount, €106.6 billion was attributable to Xetra, €2.7 billion to the Börse Frankfurt venue and €6.8 billion to the Tradegate Exchange. The average daily volume on Xetra in December was €6.3 billion (17 trading days), compared with €5.6 billion in the previous year (19 trading days).

The most traded shares on Xetra in 2018 were Bayer AG with €75.43 billion (DAX index), Osram Licht AG with €7.41 billion (MDAX index), Puma SE with €1.92 billion (SDAX index) and Wirecard AG with €26.16 billion (TecDAX index).

Trading volumes on Boerse Stuttgart amounted to around EUR 71.2 billion in 2018, which is a drop of 11 percent when compared to 2017. Equities trading was responsible for EUR 15.6 billion, with German equities contributing with around EUR 11.2 billion. The most traded shares were Daimler AG, BASF SE and Allianz SE. In regard to international equities, Amazon shares accounted for the biggest share of turnover, followed by Apple and Alibaba.

In May 2018, GAIN Capital Holdings sold its institutional business division, GTX ECN, an institutional platform for trading foreign exchange to Deutsche Borse’s 360T for a total consideration of $100 million. The move marked Deutsche Borse’s continued expansion motive in the Fx space and institutional level FX trading businesses to exchanges.

Boerse Stuttgart, the second largest in the country and the ninth largest in Europe, confirmed its leading position in securitised derivatives on the German market. The trading volume in this asset class exceeded EUR 33 billion. A turnover figure of more than EUR 19.2 billion was recorded for leveraged products in 2018 – 19 percent more than in the previous year. Turnover from investment products came to over EUR 13.8 billion.

Exchange-traded products generated turnover of almost EUR 9.9 billion and bond trading had an order book turnover of around EUR 11.2 billion, with EUR 8.2 billion being corporate bonds. Stuttgart is responsible for 56 percent of Germany’s corporate bond trading.