Profit & Loss Forex Network Chicago – Traiana

Maven Wave News and Views: Profit and Loss brought their Forex Network Chicago event to town last week and it gave us a chance to catch-up on the current state of the FX market as well as muse on the changes that have occurred since the edition of the event. Much has certainly changed since with the far-reaching scandal regarding the misuse and abuse of industry fixings, particularly the London 4 PM fix, or WM, the most important development. Whereas talk at this event in was about things that were happening at some distance from the FX market e.

Dodd Frank swaps clearing , there is a sense that things are now happening to, not around or away from, FX. As a result, there was a bit more urgency about the state of the industry, particularly as most of the year has been marked by the same low volatility and trading that has put pressure on every aspect of the business. Good volatility in the month of September heartened some, but no one was ready to declare that the light at the end of the tunnel was the glow of a brighter day and not the onrushing freight train of more regulation.

The FXPA will be an advocacy group that represents the interests of the FX industry to regulators, the media, and the public and it has a broad base of membership that includes professional traders, the buy-side, exchanges and clearinghouses, interdealer brokers, technology providers, and banks.

Profit and Loss Forex Network Chicago | Financial Trading Events, Conferences, Panel Discussion & Trade Shows | Automated Trader

A more inclusive and responsive lobbying group was certainly called for, particularly with FX being in the regulatory crosshairs of late. That being said, it is hard to feel completely positive about FXPA and what it means. For one, banks are under-represented in the effort with BNY Mellon, the 34th largest FX dealer in the Euromoney poll, as the sole bank representative on the FXPA board. Banks are the beating heart of FX and limited participation by them in FXPA will lessen the impact of the the trade groups message.

More broadly, it is difficult to get fired up for yet another lobbying group in Washington, D. There were several items to note as changes from last year and trends to watch for in the future:.

Redline Solutions made their first appearance as an exhibitor and TNS was back for the second straight year.

That and the fact that service providers are looking for new distribution channels because equities and derivatives are stagnant. The expectation is that Dodd Frank and EMIR will ultimately spawn more cleared trading in FX and exchanges have upped their game in their presence at this event.

CME has always been big, Eurex has launched new currency futures this year and both NASDAQ OMX and ICE are making noises to make a bigger push for cleared FX. A Camel in the Tent: In what I believe is a first, a representative from the proprietary trading community appeared to represent a market maker's point of view on a panel. However, as was noted at the Options Industry conference last April, the face of market making is changing in all asset classes and FX is no exception.

Life after the Volcker Rule: Isaac Lieberman of Aston Capital Management presented tangible evidence of the effect that the implementation of the Volcker Rule is having.

Lieberman was previously a proprietary trader at JP Morgan but with such trading now outlawed due to Volcker, Lieberman has set up Aston to perform the same function but now in the form of a hedge fund.

We can expect to see many more such vehicles as the market making function is assumed by non-traditional entities, including proprietary trading groups. Dark pools received several mentions in , but since that time there have been concrete developments, including from ITG, Fastmatch, and EBS.

Profit Loss Statement - Fill Online, Printable, Fillable, Blank | PDFfiller

Reg NMS but there is no such regulatory impetus in FX. The FX market has always had the lightest regulatory touch so the emergence of dark pools has to be ascribed to other factors, particularly the simple fact that the democratization of the market arising from expanded electronic trading has had the follow-on effect of making it harder to conduct large transactions without a negative impact on price.

Perhaps the emergence of dark pools is inevitable in the new e-world.

As consultants, Maven Wave sees many viewpoints from the market: One thing that we note across all different types of markets is the persistent and pervasive complaint about increasing regulation. Taken in isolation, these pressures might not be that harmful but could it be that the cumulative effect of these demands will ultimately have a negative impact on each and every market.

Could it be that markets have continued to grow over the past several years based solely upon momentum and that the continued addition of new regulatory rules, cases, findings, and legal actions will slowly build until all vestiges of growth are wrung out of the system? On a more positive note, Forex Network Chicago was bigger and brighter in so it may be that our pessimism is misplaced. Profit and Loss has brought the most important and influential elements of the market together for this event, including having a hand in the creation of the FXPA, and the dynamic displayed at Forex Network may turn out for the good.

Maven Wave Partners provides business consulting, technology delivery and outsourcing services to companies that seek exceptional business advancement through transformation.

Our powerful combination of business and technology expertise gives Maven Wave the competitive advantage to solve complex problems that are critical to the success of your company. Maven Wave was recently named the Innovation partner of the Year for North America by Google Enterprise and is 2 on the Crain's Chicago Business Fast Fifty, representing the fastest growing companies in the Chicago area. Forex Network Chicago Profit and Loss brought their Forex Network Chicago event to town last week and it gave us a chance to catch-up on the current state of the FX market as well as muse on the changes that have occurred since the edition of the event.

Reading the Tea Leaves There were several items to note as changes from last year and trends to watch for in the future: Final Thoughts As consultants, Maven Wave sees many viewpoints from the market: