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FX Singularity and Breaking Rates


Choudhury and Verlaine, Bloomberg, FX Traders Facing Extinction as Computers Replace Humans, here.

Electronic dealing, which accounted for 66 percent of all currency transactions in 2013 and 20 percent in 2001, will increase to 76 percent within five years, according to Aite Group LLC, a Boston-based consulting firm that reviewed Bank for International Settlements data. About 81 percent of spot trading — the buying and selling of currency for immediate delivery — will be electronic by 2018, Aite said.

Paul Rowady, Tabb Forum, The Road to SEF Trading, here.

With the introduction this week of mandatory trading on swap execution facilities, all eyes are on SEF volumes. Moderated by TABB senior analyst Paul Rowady, an expert SEF panel at TabbFORUM’s recent 2014 fixed income conference, “Breaking Rates” – including Amy Caruso, Babson Capital Management; Sam Priyadarshi, The Vanguard Group; Paul Hamill, UBS Investment Bank; George Harrington, Bloomberg; and Nathan Ondyak, LCH.Clearnet SwapClear – discusses the intricacies of the Made-Available-to-Trade rule and regulation’s impact on fixed income liquidity and the product landscape. Among the topics explored are the various access model and trade protocol options, the workflow challenges traders face in connecting to venues and selecting the best products to trade, and the ultimate role SEFs will play in the market.

Amir Khwaja, Tabb Forum, SEF MAT Day One: What does the data show? here.

What is now Mandatory to trade On SEF?

First a quick re-cap:

  • Interest Rate Swaps in USD that are spot starting for 2Y, 3Y, 5Y, 7Y, 10Y, 12Y, 15Y, 20Y, 30Y.
  • Interest Rate Swaps in EUR that are spot starting for 2Y, 3Y, 5Y, 7Y, 10Y, 15Y, 20Y, 30Y.
  • Interest Rate Swaps in USD that are IMM starting, first 2 dates and the same tenors as USD IRS.

Fur the full details see CFTC Made Available to Trade


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