Browsing: Forex


Equity Differential: A Factor in Currency Returns

Jul 23rd, 2019 | Filed under: Currencies, Newly Added, Forex, The Global Economy & Currencies, The Alts Industry, Commodities

A recent publication by two executives of State Street Associates identifies a new factor in currency turns, which it calls the “equity differential.” In effect, it argues for the viability of a trading strategy based on this factor. The paper argues that the differential in trailing equity market performance stronglyRead More

Hedge Funds and the EUR/CHF Trade

Apr 22nd, 2019 | Filed under: Hedge Fund Strategies, Currencies, Equity Hedge Funds, Newly Added, Forex, Event-Driven Hedge Funds, The Global Economy & Currencies, The Alts Industry, Hedge Funds, Macroeconomics

Three scholars affiliated with JP Morgan Chase have written a paper on hedge fund behavior ahead of meetings of the Swiss National Bank, with the idea of shedding light on the consequences of the timing of central bank announcements more generally. They conclude that the SNB contributed to the volatilityRead More

World Currency: Who Needs a Numeraire?

Mar 10th, 2019 | Filed under: Currencies, Newly Added, Forex, The Global Economy & Currencies, The Alts Industry, Finance & Economics

One startling fact about the new book, How Global Currencies Work: Past Present and Future, is to be found in the index. One would normally expect, from a title and subtitle like that, that there would be a lot of pages enumerated at the index heading “Bretton Woods.” After all,Read More

BIS Numbers and the Market for Forex NDFs

Jun 1st, 2017 | Filed under: Algorithmic and high-frequency trading, Newly Added, Forex, The Global Economy & Currencies, Business News, Finance & Economics

A little over a year ago, the Bank for International Settlements announced its 11th Triennial Central Bank Survey of Foreign Exchange and Over the Counter Derivatives Market Activity. In recent days, Pragma Securities has referenced those BIS numbers in explaining the market for its latest service, an expansion of PragmaRead More

Nation-States and Block-Chains: Vying for the Cutting Edge

Mar 21st, 2017 | Filed under: Currencies, Newly Added, Forex, The Global Economy & Currencies

Deloitte proposes that the Swiss Confederation has a key role to play in the continued development of blockchain. In a new whitepaper, Deloitte makes this case based on Switzerland’s “special position as a global innovation centre.” There are six sides to Switzerland’s position: its FinTech infrastructure; its start-up attractiveness; itsRead More

Massad: Where the U.S. and the World Stand on Margins & Cap Requirements

Oct 27th, 2016 | Filed under: Investing in Commodities, Newly Added, Forex, The Global Economy & Currencies, Commodities, Finance & Economics

The chair of the Commodity Futures Trading Commission, Timothy Massad, addressed the Outlook Conference of the Managed Funds Association on October 21, and spoke about the global implementation of uncleared margin rules, which he called a critical component of “the new regulatory framework for swaps trading that the leaders ofRead More

NB: China Positions the Yuan for Global Reserve Currency Status

Aug 9th, 2016 | Filed under: Currencies, Newly Added, Forex, The Global Economy & Currencies

Neuberger Berman, the asset management business spun off from Lehman in late 2008, has produced a new report on foreign access to China’s bond market. China has until now kept its bond market tightly fenced off from the rest of the world, which offers a marked contrast with the behaviorRead More

FCStone Financial on Grains and Volatility

Mar 10th, 2016 | Filed under: Commodities, Investing in Commodities, Newly Added, Forex, The Global Economy & Currencies, Commodities: Examples, Commodities, Finance & Economics

A new white paper written by Arlan Suderman, chief commodities economist for INTL FCStone Financial, discusses the consequence of the strong dollar of the last two years on the volatility of grain prices, focusing especially on corn. Before this period, there was the global financial crisis, and the “quantitative easing”Read More

Carry Strategies: Beyond Foreign Exchange

Feb 21st, 2016 | Filed under: Currencies, CTA, Newly Added, Forex, The Global Economy & Currencies, Macro and Managed Futures Funds, Hedge Funds, Commodities

International investors borrow money in countries where interest rates are relatively low, and then lend it out in countries where the rates are higher. All they do is “carry” the money, so to speak, from one country to the other.Read More

CFDs and Their Platforms in Germany

Jan 20th, 2016 | Filed under: Currencies, Newly Added, Forex, The Global Economy & Currencies

FXCM, an online provider of foreign exchange trading related services, announced January 6 that it has entered into a partnership with a German broker, FXFlat, as part of its strategic expansion into the German market. The immediate consequence of the partnership is that FXFlat’s customers can access the FXCM TradingRead More

Nasdaq Puts Its Forex Plans on Hold

Jan 18th, 2016 | Filed under: Currencies, Newly Added, Forex, The Global Economy & Currencies, Finance & Economics

There is an ancient principle of prudence, “don’t fix what isn’t broken.” Thomas Jefferson alludes to it in the Declaration of Independence. Prudence dictates that institutions “long established” are not abandoned for “light and transient causes.” It is possible that many of those who trade currencies today believe that theRead More

Japan: Richardson makes a Tricky Case

Sep 9th, 2015 | Filed under: Currencies, Institutional Investing, Indexes, Forex

The Japanese economy deserves some credit for having pulled itself out of a recent recession, and it is "beginning to show signs of benefiting from a weaker yen" as a BlackRock strategist tells us. But (there is always a "but"). Read More

Study Says The Gold Bugs are Right

Aug 23rd, 2015 | Filed under: Currencies, Hard metals, Risk management, Forex, Gold

Gold seems, to a larger extent than silver, and even more so to an extent larger than is true for palladium or platinum, to work as a true financial asset: decoupled from price developments in the commodity markets. It succeeds as a hedge against currency and stock-market trouble.Read More

Another Southeast Asia Currency Crisis

Aug 17th, 2015 | Filed under: Currencies, Forex, Emerging markets

China's moves in recent days seem likely to set off a new Southeast Asia currency crisis, which will look a lot like the old Southeast Asia currency crisis. This was clear even on August 11th, when traders in the rest of the world were apparently working on the premise that China's move that day was a one-off. Read More

The LIBOR Fixing Scandal Gets a Conviction and a Book

Aug 9th, 2015 | Filed under: Currencies, Derivatives, Forex

When it all hit the fan, U.S. investigators in particular (the Brits somewhat less so) came to see Hayes as a mastermind behind its digestive generation. But Arvedlund seeks in her new book on the Libor Rigging scandal to place the role Hayes played in context. Read More

Overtrading and the Danger of Pro Rata

Jul 30th, 2015 | Filed under: Commodities, Algorithmic and high-frequency trading, Currencies, Derivatives, Forex

Guest columnist Ginger Szala looks at pro rata and what happens if...Read More

Banned in China: High Praise for a Statistics Textbook

May 13th, 2015 | Filed under: Currencies, Forex, Macroeconomics

At this moment, when news from China has turned sober and the monetary/fiscal authorities there seem torn by inconsistent goals, a tweet flutter has reminded us of a boring data-analysis text that was nixed by a publishing house in China for reasons of political sensitivity. Read More

John H. Makin, Hedge Fund Economist/Principal, Defender of U.S. Fed

Apr 8th, 2015 | Filed under: Currencies, Alpha Hunters, Forex

The impression one gets from some of the recent work of Dr. Makin is of a man who decided, late in life, that currency is a state invention, and that the states deputize their central banks to make sure the rest of us use it properly. Read More

Don’t Blame the Swiss: Results Discounted Days Before Vote

Dec 8th, 2014 | Filed under: Commodities, Currencies, Hard metals, Forex, Gold

The price of gold took a swan dive as November ended, just as Swiss voters formally nixed an initiative that would have required the central bank to buy a lot of the stuff. Faille argues that this is not a matter of cause and effect. It is, on the other hand, a fascinating case study in the discounting machinery that is a market. Read More

Extra! Extra! Central Banking the Disease It Affects to Cure

Nov 16th, 2014 | Filed under: Currencies, Forex

The release of Lord Grabiner's report provides evidence going well beyond the conclusions that Grabiner himself is willing to draw, and shows a central bank acting as a wink-and-nod clearing house. Read More

Bitcoin Miners: The Hammer and the Butterfly

Oct 6th, 2014 | Filed under: Currencies, Forex, Digital currencies

In the matter of a merchant selling computers that are supposed to mine bitcoin, the FTC alleges that the merchant is a sham, simply using the language of the bitcoin world to find suckers. But the agency might have gotten a bit ahead of itself here. Read More

BIS to US Fed: You’re Messing with the World

Aug 25th, 2014 | Filed under: Currencies, Forex, Emerging markets

There are several channels for spill-over effects, whereby the actions of the Federal Reserve and the ECB can have grave consequences around the world. Psychological consequence, in particular herding, is among them. Read More

PrevInvest: Fishing for Yield in a World of Liquidity

May 19th, 2013 | Filed under: Forex

A new report by PrevInvest, the "Investment Outlook & Hedge Fund Strategies Insight Report," focuses on the consequences of the race to the bottom among the world's industrialized nations and their central banks, and the way this has created a lot of sloshing-around of liquidity looking for profitable channels. Read More

The Mere Whisper of the Name ‘Soros’

May 15th, 2013 | Filed under: Currencies, Media Coverage of Hedge Funds, Forex

Facile parallels notwithstanding, neither the argument Druckenmiller made at Sohn nor any other good reasons that may now exist for shorting the Aussie have a lot to do with the case against the pound in 1992. That tug-of-war occurred in a unique context, not here replicated. Read More

Basel/IOSCO ‘Near Final’ Proposal: Part Two

Mar 3rd, 2013 | Filed under: Derivatives, Regulatory, Forex

This is the second of a two-part discussion of a paper jointly issued by Basel and IOSCO on margin requirements for non-centrally cleared derivatives. The new paper solicits feedback on the phase-in timeline it proposes, a phase-in designed to provide flexibility so the affected markets can meet "operational and logistical challenges" by which they might otherwise be stymied. Read More

Alpha Hunters: Looking at Alternative Investments From the Inside Out

Jun 7th, 2012 | Filed under: Hedge Fund Industry Trends, Real Estate, Private Equity, Hedge Fund Strategies, CTA, Derivatives, Institutional Investing, Alpha Hunters, Alpha Strategies, Venture capital, Forex

A deeper look at alternatives with Dr. Bob Swarup, a world-renowned expert and commentator on alternatives and financial markets as well as being a visiting fellow at London School of Economics.Read More

EDHEC: SWFs and Their Implicit Liabilities

Apr 15th, 2012 | Filed under: Institutional Investing, Alpha Strategies, Forex

SWFs are distinct from pension funds at least in this sense, there are broadly speaking no explicit liabilities. There is no ongoing schedule of payments an SWF is responsible for making, for example. Nonetheless, there are clearly implicit liabilities. On this the point nearly all (92 percent) of survey respondents concurred, saying that implicit liabilities, arising from the objectives of the fund, must be taken into account in managers’ plans.Read More