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FASTMATCH SELECTS CAPLIN TO FRONT FX ECN

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Dmitri Galinov

Caplin Systems today announced that FastMatch, the foreign exchange ECN co-owned by BNY Mellon, Credit Suisse and FXCM, has selected Caplin, the web trading technology company, to develop the new electronic distribution platform for its spot FX matching service.

Dmitri Galinov

Dmitri Galinov

Launched in September 2012, FastMatch offers its customers access to a large and completely transparent pool of diversified liquidity at unparalleled speed. Its global reach is powered by datacenters in New York and London – with a third center, Tokyo, going live in Q1 2014.

Dmitri Galinov, CEO of FastMatch, says: “Our platform is based on the technology underpinning the world’s largest equities crossing system. So when it came to the front end we needed to implement an equally impressive solution. When we looked into it, there was only one vendor we trusted to deliver to our standards within the time and budget constraint.”

Caplin’s market-leading electronic trading technology is used worldwide by banks such as Citi, RBS, Standard Bank and UniCredit. In September 2013, Caplin announced the launch of its FX Motif, a customizable FX web trading solution that reduces costs and time-to-market by up to 75% compared to alternative methods. This technology will be the core of the FastMatch solution.

Richard Leader, Caplin's Executive Vice President

Richard Leader, Caplin’s Executive Vice President

Richard Leader, Caplin’s Executive Vice President, Americas, says: “The win is significant because it marks Caplin’s entry into a new arena: front-ends for non-bank trading platforms – a compelling segment, given the regulatory push in this direction and the proliferation of firms offering these services, especially in the U.S.”He adds: “The bigger picture is encouraging: we’re engaged with a growing numbers of firms that a year ago were outside our core investment banking domain – from wealth management giants and retail brokers to institutional electronic market-makers – that are actively transitioning to HTML5 and recognize that Caplin’s got some great, battle-proven web trading technology that can fast turn their visions into reality.”

EminTatosian, Caplin’s Chief Consultant in the Americas, continues: “FastMatch is an inherently lean and agile organization whose ‘get it done’ approach closely mirrors our own. Consequently this project moved from successful prototype to signature in a matter of weeks. We’ve set aggressive deadlines for implementation too, to prove that a transformational project can happen with ground-breaking speed and efficiency.”
Caplin has already begun work on the implementation.

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Oil drops on dollar strength and OPEC+ supply expectations

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Oil drops on dollar strength and OPEC+ supply expectations 1

By Jessica Resnick-Ault

NEW YORK (Reuters) – Oil prices fell on Friday as the U.S. dollar rose while forecasts called for crude supply to rise in response to prices climbing above pre-pandemic levels.

Brent crude futures for April, which expire on Friday, fell 74 cents, or 1.1%, to $66.14 a barrel by 12:45 EDT (17:45 GMT). The more actively traded May contract slipped by $1.08 to $65.03.

U.S. West Texas Intermediate (WTI) crude futures dropped $1.42, or 2.2%, to $62.11. The contract was still on track to be up 4.8% on the week.

The U.S. dollar rose as U.S. government bond yields held near one-year highs, making dollar-priced oil more expensive for holders of other currencies.

“It’s a dicey time – it doesn’t seem like a time to load up on a risk-asset position,” said Bob Yawger, director of Energy Futures at Mizuho in New York, wary of a potential output increase from OPEC and allies at next week’s meeting. Also, the U.S. stockpile report this week showed a surprise build in oil inventories.

Friday’s gains also reflect profit-taking after both Brent and WTI headed towards monthly gains of about 20% on supply disruptions in the United States and optimism over demand recovery on the back of COVID-19 vaccination programmes.

Investors are betting that next week’s meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies, a group known as OPEC+, will result in more supply returning to the market.

U.S. crude production fell in December, the latest month for which data is available, according to a monthly report from the Energy Information Administration.

Despite talk of tightening fundamentals, the demand side of the market is nowhere near warranting current oil price leves, they added.

U.S. crude prices also face pressure from slower refinery demand after several Gulf Coast facilities were shuttered during the winter storm last week.

Refining capacity of about 4 million barrels per day (bpd) remains shut and it could take until March 5 for all capacity to resume, though there is risk of delays, analysts at J.P. Morgan said in a note this week.

(Reporting by Shadia Nasralla, Additional reporting by Sonali Paul in Melbourne and Koustav Samanta in Singapore; Editing by David Goodman, Louise Heavens and David Gregorio)

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Bitcoin set for worst week since March as riskier assets sold off

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Bitcoin set for worst week since March as riskier assets sold off 2

By Ritvik Carvalho and Tom Wilson

LONDON (Reuters) – Bitcoin was headed on Friday for its worst week since March as a rout in global bond markets sent yields flying and sparked a sell-off in riskier assets.

The world’s biggest cryptocurrency slipped as much as 6% to $44,451 before recovering most of its losses.

It was last trading down 1% at $46,671, on course for a drop of almost 20% this week, which would be its heaviest weekly loss since March last year, when fears over the novel coronavirus caused havoc in financial markets.

The sell-off echoed that in equity markets, where European stocks tumbled as much as 1.5%, with concerns over lofty valuations also hammering demand. Asian stocks fell by the most in nine months.

“When flight to safety mode is on, it is the riskier investments that get pulled first,” Denis Vinokourov of London-based cryptocurrency exchange BeQuant wrote in a note.

Bitcoin has risen about 60% from the start of the year, hitting an all-time high of $58,354 this month as mainstream companies such as Tesla Inc and Mastercard Inc embraced cryptocurrencies.

Grayscale’s Bitcoin Trust, which has seen huge inflows amid the heightened interest in cryptocurrencies and manages almost $33 billion in assets, was down 5.5% versus its previous close at $45.63.

The Purpose Bitcoin ETF, which became this month the world’s first exchange traded fund physically settled by bitcoin, last traded at $7.41 versus a net asset value of $9.36.

Its stunning gains in recent months have led to concerns from investment banks over sky-high valuations and calls from governments and financial regulators for tighter regulation.

(Reporting by Ritvik Carvalho and Tom Wilson; editing by Dhara Ranasinghe, Karin Strohecker, William Maclean)

 

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Sterling knocked back by bond rout and inflation fears

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Sterling knocked back by bond rout and inflation fears 3

By Joice Alves

LONDON (Reuters) – Sterling fell against a stronger dollar on Friday, retreating from a three-year high touched earlier this week, as a rout in global bond markets sent yields flying and hurt the pound, while the Bank of England warned of inflation risks.

After rising above $1.42 for the first time in three years earlier this week, the pound fell to $1.3890 at 1059 GMT, its lowest since Feb. 18..

Versus the euro, the pound fell 0.1% 87.03, after hitting a 10-day low of 87.30 pence in earlier trading..

Bank of England Chief Economist Andy Haldane warned on Friday of a risk that inflation will prove difficult to keep under control as the economy recovers from the pandemic.

Analysts also attributed sterling’s fall on Friday to a sell-off in bond markets.

Benchmark U.S. Treasury yields vaulted to their highest since the pandemic began, driven by the prospect of accelerating growth and inflation that could trigger a faster rise in interest rates than many expect. Gilt yields also rose sharply on Thursday.

“The aggressive Cable capitulation has seen macro and leveraged players retreating from an increasingly overbought market,” said Jeremy Stretch, head of G10 FX strategy at CIBC Capital Markets.

“The correction came as the UK curve 2-10 flattened by 2bp yesterday and short sterling rallied into the close”.

The pound has strengthened about 2% this year as traders expect Britain’s speedy vaccine roll-out will help the economy rebound from its biggest contraction in 300 years.

Relief over a Brexit trade deal and pushed back expectations for negative interest rates from the Bank of England had also supported sterling.

Sterling was still on track for its fifth consecutive month of gains against the greenback and the euro, with analysts maintaining a positive outlook on the currency.

Sterling knocked back by bond rout and inflation fears 4

(For graphic of Sterling monthly performance – https://fingfx.thomsonreuters.com/gfx/mkt/oakperraqvr/Sterling%20monthly%20performance.png)

(Editing by William Maclean)

 

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