WBR Insights - Capital Markets’ Post

Is your FX trading ready for the future?   As we know from our latest TradeTech FX report, buy-side firms are increasingly turning towards FX futures.   But another key finding from the survey revealed an interesting trend. We surveyed 120 of the leading lights in the industry to find out how and why they are keen to embrace FX futures. They told us that their firms are actively seeking to automate and streamline their FX trading operations. This includes a growing interest in integrating FX futures into their existing OTC FX execution management systems (EMS). By consolidating trading activities onto a single, efficient platform, firms can reduce operational risks and improve overall efficiency.   Some of the highlights from the survey, conducted alongside Eurex, include:   🔴 Nearly two thirds of respondents find CLOB trading to be sufficiently automated. However, there remains a gap in automation for bilateral execution models.   🔴 There is a clear preference for executing FX futures via OTC FX EMS such as 360T, Bloomberg FX GO / RFQe and FX Connect. This highlights the desire for a streamlined workflow and the convenience of managing all FX activity within a single platform.   🔴 A significant number of respondents (47%) identified holistic service offerings as the most important consideration when it comes to choosing a derivatives exchange for FX futures.   Read the full report for free here: https://lnkd.in/ezGQ6z-w

"‘𝐁𝐨𝐥𝐝’ 𝐦𝐞𝐚𝐬𝐮𝐫𝐞𝐬 𝐚𝐜𝐫𝐨𝐬𝐬 𝐭𝐡𝐞 𝐞𝐧𝐭𝐢𝐫𝐞 𝐩𝐮𝐛𝐥𝐢𝐜 𝐞𝐪𝐮𝐢𝐭𝐲 𝐬𝐲𝐬𝐭𝐞𝐦 𝐚𝐫𝐞 𝐧𝐞𝐞𝐝𝐞𝐝.”   This is the shared consensus among stakeholders in the capital market, including listed companies, investors and fund managers, as reported by The Business Times (BT). To address the challenges in today's market, it's crucial to tackle both demand-side issues, such as deepening market liquidity, and supply-side issues, like improving the range and quality of listings.   Stakeholders agree that a holistic approach is necessary — changes across the entire ecosystem must work in tandem to create meaningful impact. But what will it take to elevate the public equity market to its next level?   At M-DAQ Global, our Trading the Right Chart (#TRC) solution is designed to transform the ecosystem by shifting FX conversions of cross-border securities trading to the point of trade execution.   This empowers cross-borders investors to trade in their preferred currencies, eliminating the uncertainty of potential trade gains or losses that arise from conversion back to their home currencies. As a result, stock exchanges stand to benefit from attracting secondary listings from overseas companies, boosting trading volumes and increasing revenue. 📈   Whether you are a stock exchange, brokerage platform, or tech provider for trading platforms, discover how #TRC can revolutionise the securities trading ecosystem by bringing FX certainty and clarity. Connect with us today: https://lnkd.in/gRAWwQTU. 👨💻   Link to the BT article in the comment below 👇🏼   #fintech #TradingtheRightChart #securitiestrading #stockexchange #innovation #fx #crossborder #foreignexchange #worldwithoutcurrencyborders

FX Futures - are they the future of FX trading?   Our latest TradeTech FX report, conducted alongside valued partner Eurex, reveals a significant trend. FX futures ARE gaining traction among buy side firms.   In chapter one of the report, we aimed to understand how and why they are being used. Our exclusive survey of 120 of the most senior leaders in the industry revealed: 🔴 95% of asset managers, pension funds, insurance companies, and hedge funds are already using FX futures. 🔴 Nearly 75% conduct up to 30% of their FX operations through futures. 🔴 All respondents plan to increase their use of FX futures in the future.   So why the shift? Factors like enhanced market access, evolving market sentiment, and regulatory considerations are driving this adoption. Plus, the OTC FX market's challenges - like UMR, liquidity, and rising capital costs - are making futures more appealing.   Want to know more?   Download our full report to read every chapter for free: https://lnkd.in/ezGQ6z-w

In today's evolving European equity markets, the rise of bilateral liquidity is redefining trading dynamics, with buy-side firms directly engaging with market makers like Optiver. Optiver has become a key player as an Electronic Liquidity Provider (ELP), offering bespoke, direct execution streams that minimize market impact. Their integration into advanced execution management systems is revolutionizing how trades are executed, marking a new era in market efficiency. https://lnkd.in/eBrx_v_e

Liquidity drives the market, trade where the liquidity is available to consume ... .

Many #Eurex #FX #Futures Stars aligning as we position ourselves as new stewards to this asset class! Order Book, or Blocks / EFPs? Surgical Knife, or Bazooka? Anyonymous, or Disclosed? Various complimentary liquidity pools and a myriad of tools for any use case, perfectly crafted for the future Hybrid FX environment where OTC & ETD FX will coexist. #DeutscheBörseGroup #360T

While the headline talks about the "Futurisation" of #FX, it's interesting that the actual article is a bit more nuanced, with our friends at Eurex discussing how they are looking to replicate the OTC FX market structure in an exchange-traded environment and protecting bilateral relationships while offering access to liquidity of OTC counterparties and OTC markets: https://lnkd.in/g2nKNsEK #Currencies #Derivatives #FXtrading #360T

My recent travels and conversations suggest it's a good time to revisit this article about the buy-side increasingly becoming price makers in the corporate bond market. Bottom line, more and more clients are engaging in liquidity provisioning through all-to-all trading venues and often supplementing their strategies with automation/trading algos. Check it out and happy to discuss how we are involved. #opentrading #bestdatawins #credit #automation

Hybrid trading models are on the rise. #Eurex actively embraces the growing participation of #OTC FX market players utilizing FX #Futures. Our ambition is to establish a market structure for listed FX derivatives that fully acknowledges the bilateral dynamics of OTC markets. In our latest Focus News, Tobias Rank, Head of FX Product Sales at Eurex, looks at how FX market participants are integrating futures into their existing FX business.  Read more on how to integrate FX futures in a hybrid world:

Interesting news in the fixed income space! ICE Bonds and MarketAxess are joining forces to connect their liquidity networks. This collaboration aims to bring greater efficiency and access to deeper liquidity in fixed income markets for institutional and wealth management spaces. By integrating ICE Bonds’ automated trading system (ATS), ICE TMC, with MarketAxess’ Open Trading network. This partnership will enhance price transparency, best execution, and overall market liquidity for all participants. IMTC is excited to be partnering with both of these firms to help our clients take action on live market inventory. #FixedIncome #Trading #Liquidity #Innovation #Finance #transparency #portfoliomanagement