Forex Industry News this week was again headlined by several stories seen exclusively on LeapRate.
While the FX world was still busy trying to sort out the Brexit referendum result, we broke news of the latest FCA-regulated retail FX brokerage to launch, new rules on CySEC-regulated brokers’ choice of liquidity provider and market maker relationships, and the departure of Saxo Bank Switzerland’s CEO.
Speaking of Brexit, some of our analysis went viral on social media. For example, getting several thousand Facebook hits was our post Who are the big winners from the #VoteLeave Brexit referendum victory?
As the calendar turned to July (more than half of 2016 is over already!) we brought LeapRate readers early June eFX volume returns, with activity up 20%+ at venues such as GTX, FastMatch, Hotspot FX and FXSpotStream.
Our most popular guest posts this week were courtesy of FxPro on CySEC ban on linking pay to volumes, deposits or client P&L: A Step in the Right Direction, and Fortex on What impacts STP execution and how can you improve it?
Some of our most popular, shared and commented-on posts on what was certainly a week to remember at LeapRate included:
Latest FCA regulated retail forex broker to launch: BlackPearlFX. LeapRate Exclusive… LeapRate has learned that a new FCA regulated Retail FX broker just launched operations under the fairly unique brand name of BlackPearlFX, a trading name of Black Pearl Securities Limited. The broker also seems to have social trading in mind. We are pleased to bring LeapRate readers an exclusive interview with BlackPearlFX co-founder and CEO Francesco Porcu, who addresses the company’s somewhat unique name, which regions BlackPearlFX plans to focus on, and lots more.
CySEC sets new rules for use of Liquidity Providers and Market Makers. Cyprus financial regulator CySEC has issued a consultation paper regarding new proposed rules governing the use of Liquidity Providers and Market Makers by regulated brokers on the island. The new rules would still allow Retail Forex brokers on the island to have liquidity and market making relationships with entities outside the EU, under certain conditions. The new rules will also require brokers to be transparent about trade flow. It should be clear to clients what the broker’s hedging arrangements are, and where the trades are executed. CySEC also made its preference known for brokers having more than one liquidity provider. So what do the new rules say about transparency on trade execution and hedging? And when can CySEC regulated brokers use foreign LPs?
Antonio Ferrante steps down as CEO of Saxo Bank Switzerland. LeapRate Exclusive… LeapRate has learned that Antonio Ferrante has stepped down as CEO of Saxo Bank (Schweiz) AG, the Swiss arm of global retail forex broker Saxo Bank, amid some other management moves at Saxo Switzerland. Mr. Ferrante was originally appointed to head Saxo Bank’s operation in Switzerland in late 2014. Who is replacing Mr. Ferrante? And what other management moves is Saxo Bank making?
Brexit Casualty #2: Are UK clearing houses about to lose their EUR business? It is becoming clear as the dust is settling from last week’s Leave victory in the UK Brexit referendum that European country government and EU officials are going to do all they can to make it both difficult and expensive for the UK to leave the European Union. There are some key UK gems which European officials will be targeting in the coming months, several of which will be in London’s lucrative financial services sector. Casualty #2 just might be the London-based clearing firms (LCH.Clearnet, ICE Clear Europe…) which are in the middle of trillions of dollars of transactions every year in currency, interest rate, and derivatives trades. So which businesses are at risk?