e-FOREX : INTERVIEW
In February of this year, we launched the Brazilian Roll (BRL ROL) on EBS, which allows customers to trade the front future outright, roll their position from the front future date to the next, and roll day to day balances to the front future in BRL. Tis is another electronically-traded product that is unique to EBS and has been received very positively by the market right from launch.
As US and European regulators continue to mull over FX, a great deal of uncertainty still remains regarding the final rule-sets that are likely to emerge. How would you describe ICAP’s tactical and strategic response to regulatory and market changes and is it fair to say you have hoped for the best but planned for the worst?
Our platforms have been designed and built to deliver efficiencies in execution as well as risk management. EBS is transparent with full audit trail capabilities and currently exceeds the standards outlined in Dodd-Frank. So given current definitions, we fully expect EBS to qualify as a SEF in the US and to meet European qualification criteria as an OTF.
Since NDFs will be included under the new legislation and EBS is set to become a SEF, this presents a tremendous opportunity for us. EBS was the first platform to introduce electronically-traded NDFs, which we now offer in a range of Asian and LatAm currencies, including fixed data Brazilian real NDF, as well as Russian ruble. We’ve recently seen rapid growth in our NDF business – both in average daily volumes and trading counterparties. Tis will continue to be an important focus for us this year.
Although it appears that forwards may be exempt from the legislation, subject to a final ruling by the US Treasury, we’re in the process of exploring FX swaps and forwards solutions on EBS to ensure we’re prepared for a range of outcomes.
Te changes to the OTC regulatory landscape over the next few years will have a very significant impact on our industry. But while it’s true that there’s still considerable uncertainty, regulatory reform will also create opportunities. We’re well-resourced and prepared to enhance our capabilities to ensure our markets retain their leadership positions in the impending new regulatory environment.
78 | april 2012 e-FOREX
It’s likely that reform will provide a significant boost to electronic execution, as there will be a need for greater transparency in pricing and reporting that meets regulatory requirements.
We’ve also recently configured our electronic FX business to reflect and anticipate changing market dynamics and the new regulatory landscape. We’re excited to have Gil Mandelzis on board as the new CEO of EBS, as his vast experience and depth of market knowledge will enable us to continue responding to the rapidly evolving needs of our customers and to deliver exceptional service.
A block-trading service called Continuous Match and decimalised pricing on major currency pairs are just some of the other innovative products that ICAP has released over the last 18 months. Are you planning a period of consolidation now to give customers time to adjust to the changes that have been introduced?
Any changes we make to our platforms should enhance our customers’ trading experience. Just like our customers, we don’t believe in change for the sake of change, which is why we innovate in response to real customer need.
“Growth in FX is likely to come from BRIC and emerging markets”
But a bigger risk both to us and our customers would be to rest on our laurels. Te market’s evolving rapidly and we need to make sure we stay at the forefront of this
evolution – and help our customers to do the same. When we launch any new product, order type or platform functionality, we ensure that our customers have all the information they need to be able to use new features effectively.
Tis has certainly been the case with Continuous Match, which is now well established and, as I mentioned earlier, is continuing to see strong growth, both in average daily volumes and new trading counterparties.
We’re excited about introducing more intelligent order features in the future that will bring greater convenience to our customers and tie together some of the order types we’ve already developed. We have an exciting product roadmap in place for 2012-13, which has been carefully planned to provide our customers with tailored solutions they’ve expressed a need for.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150 |
Page 151 |
Page 152 |
Page 153 |
Page 154 |
Page 155 |
Page 156 |
Page 157 |
Page 158 |
Page 159 |
Page 160 |
Page 161 |
Page 162 |
Page 163 |
Page 164 |
Page 165 |
Page 166 |
Page 167 |
Page 168 |
Page 169 |
Page 170 |
Page 171 |
Page 172 |
Page 173 |
Page 174 |
Page 175 |
Page 176 |
Page 177 |
Page 178 |
Page 179 |
Page 180 |
Page 181 |
Page 182 |
Page 183 |
Page 184 |
Page 185 |
Page 186 |
Page 187 |
Page 188 |
Page 189 |
Page 190 |
Page 191 |
Page 192 |
Page 193 |
Page 194 |
Page 195 |
Page 196