The Full FX Podcast: Currency Matters

In the latest edition of the podcast, Steve Flanagan and Colin Lambert are joined by The Full FX’ contributing editor at large, Eva Szalay, who knows how to make an impact by going straight in and asking Lambert about recent research on the various fixes. Thankfully, Lambert does not spend the entire podcast ranting, instead he and Flanagan discuss the intricacies of executing large tickets and the role of pre-hedging – even though neither can remember the phrase from their voice trading days!

The discussion progresses through to the signalling risk involved in large ticket execution – Flanagan highlights the “digital crumbs” left behind – and the impact this has around the Fix window, especially at month-end.

The chat then moves onto another theme of the past month in The Full FX, with Szalay highlighting the ambiguity around the Trading Perimeter in the UK and EU, and the lack of action from the regulators, regarding what constitutes a trading platform and who exactly should be registering? The three discuss the impact, or not, of the regulation, as well as the view of the trading desks when it comes to registered/non-registered venues, before Lambert asks Szalay if the regulators will wake up one day – much to the distress of the market.

After a brief pause, during which Lambert tries to sell Flanagan to potential sponsors (yes, really!), the discussion moves onto sales coverage, a theme on which Lambert and Flanagan have differing views, and the skill sets required in the modern market.

The podcast ends with Lambert asking Szalay, “T+1: What was all the fuss about?” and the three talk about the rise of “guess-hedging”, the opportunities and challenges involved, silver coins and Y2K. before observing that the whole event was yet another example of the FX industry preparing well for a known-unknown event.

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The latest edition of the podcast sees Colin Lambert and Steve Flanagan allow a former FX salesperson into the conversation in Full FX regular Ted Holloway, as they discuss the big stories and issues of the previous month.

The conversation kicks off with Lambert challenging Flanagan on his view in a previous column, that all is good in the liquidity world. If that is the case, Lambert asks, why do industry surveys always show it to be a top-two concern? Flanagan has an answer, naturally, but Lambert also asks Holloway – is this actually a client perspective problem?

A lively chat ensues, including a debate over execution quality, the impact of balance sheet and credit constraints on banks’ ability to grow, as well as what constitutes a “good amount”? They also ask, is a new era of white labelling upon us – albeit under a new name?

Holloway provides a great insight into how he thinks the sales/trading relationship should work, including a widely-used system that he sees as “ridiculous”, and how it fits into the broader FX business model.

The conversation then turns to Flanagan’s recent column on market data risk, allowing him to expand on his opinions, while Holloway looks at how such a cyber incident could impact a participant’s reputation, arguing, it’s not a question of ‘if’ more one of ‘when’ – in spite of the tremendous efforts of so many people to guard against it.

There is also time for a debate on correlations – do they work and are they their own risk? – as well as for Flanagan to ask Lambert for his view on CLS’ decision not to change the cut-off time as the industry approaches the North American T+1 switchover at the end of May.

The ‘cast closes out with a quick chat about the lack of impact of the Trading Perimeter guidance in the UK and Europe – and how it would change the market if the guidance was actually enforced. And there is, naturally, time for Flanagan (and Holloway) to cast aspersions upon Lambert’s Trade of the Year!

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The podcast is back in 2024 with a new format as Colin Lambert is joined by two contributors to The Full FX, Steve Flanagan and Andrew Durrant to discuss the big issues of the past month.

The first episode hopefully sets the tone for the future with Flanagan immediately questioning Lambert over his comments in another podcast relating to flash crashes. With Durrant, they debate the question, ‘what is a flash crash?’, asking, ‘is what we see in these events just a new market norm?’

The discussion on the related re-papering of trades manages to drag the chat into “dinosaur trading” and the concept of doubling up until you can’t any more (at which time you exit the building), and speaking of doubling up, Flanagan probably reflects the wider Full FX audience, by not seeming to be happy with Lambert’s 2024 Trade of the Year. That is as maybe, but Lambert is equally unhappy when Flanagan introduces facts into the conversation, pointing out that being long PEN/GEL incurs a 3% carry charge over the year – this on top of a trade that is already underwater!

The conversation then moves onto third-party services in FX and the transparency (or lack of) around these arrangements, especially in an age when cyber security is such a big issue. The three see some anomalies in the JP Morgan 2024 e-Trading Edit, mainly around an apparent lack of concern on security, but have a good idea why that is.

Somehow, this leads out trio into a conversation about the influence of human traders on markets, before they close out by discussing the recent GFXC review of the FX Global Code. Durrant gets general agreement when he says that the Code continues to be fit for purpose, but it is noted that the only area of concern in the survey was over our old friends last look and pre-hedging. It was accepted that only a minority share those concerns, but, long time listeners to the In the FICC Of It podcast will be delighted to hear, Lambert has one of his “theories” to explain why it may be a bigger issue than many think.

Listen here, or subscribe from your podcast store.

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In the latest edition of the podcast – sponsored by Lucera Financial Infrastructures – Colin Lambert talks to Scotte Moegling, responsible for the counterparty business in currencies, commodities and crypto at Flow Traders.

The two discuss the evolving market structures across the three markets and look for commonalities, as well as where they can learn from each other. Moegling, explains how Flow Traders have set up and run its business, as well as the role played by Lucera in helping it focus in on opportunities to differentiate itself. One area of this includes helping Flow Traders remain focused on its unique price formation, while Lucera manages the technology infrastructure.

Moegling also explains how being part of the Lucera network helps the firm grow its counterparty business and scale more generally across all three asset classes, while meeting the challenge of growing fragmentation across both data and trading venues.

There’s also time to talk about the nuances of trading crypto and FX markets, as well as how both markets will evolve in the year ahead.

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The podcast is back and in this edition Colin Lambert and Sam Horowitz, head of FX distribution and liquidity management at CMC Connect look to cut through some of the noise around different FX platforms and the quality (and quantity) of market data – especially in an era of changing volume patterns.

The two discuss the influences of exchanges as they build their ownership of platforms in the OTC FX space, as well as how data from last look venues can be used and the importance of being able to understand the nuances of different feeds. There is also time for a discussion on what “good” data looks like, as well as whether there is a threshold at which the cost/value proposition tips into negative/positive territory.

Finally, Lambert is keen to investigate whether there is a third way – a different approach to market data in FX – and yes, the conversation does stray into the world of a Tape!

Listen here, or download from top podcast providers.

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With peer-to-peer trading in FX seemingly attracting more attention than ever, it is an opportune time for Colin Lambert to sit down and chat with Jay Moore, co-founder and CEO of FX HedgePool. In a wide-ranging conversation the two talk the separation of credit and liquidity, the challenges facing the industry around the London 4pm benchmark fix and, an old favourite, pre-hedging!

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In the latest edition Colin Lambert demonstrates, yet again, his legendary timing by scheduling a chat with two of the co-founders of AiTonomy to discuss, amongst other things, AUD/CZK, just after his Trade of the Year in the pair had gone very, very south!

Andrew Brown and Ashley Daffin join Lambert to share their observations on how their Ai models have found the intricacies of AUD/CZK when generating trading signals, and are kind enough not to rub it in that the Ai has, convincingly, outperformed the HODL.

There is also time to discuss how the models are working in crypto markets, something that provides an interesting insight into the changing dynamics of those markets, as well as what AiTonomy is doing to extract value from what has been to date, a very successful idea.

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Liquidity is front and centre in the latest podcast as Sam Horowitz, head of FX distribution and liquidity management at CMC Markets Connect, joins Colin Lambert to discuss the changing face of FX liquidity and the role being played by CMC Markets Connect.

Horowitz explains the data-driven approach taken by the firm as well as how it manages issues such as skew and prevents information leakage – he also talks about how CMC Markets Connect differentiates itself with its proprietary liquidity.

Lambert, inevitably, wants to talk volatility, which they do, before moving on to discuss the need for flexibility and diversity when servicing an institutional client base.

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Taking advantage of the first in-person event from The Full FX, Colin Lambert took the opportunity to catch up with Sally Francis-Cole, global head of FX sales, and Geoff Jones, director, spot venues, at LSEG’s Refinitiv, and find out about the firm’s recent announcement it is launching NDF Matching in SG1.

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In the first edition for 2022, Jay Moore, co-founder and CEO of FX HedgePool, joins Colin Lambert to talk a changing FX market structure against a background of rising market volatility.

Moore observes that the cost of hedging for the buy side is rising – and expectations are that the cost will increase further as spreads widen – thanks to a combination of higher risk and the impact of regulation. One potential solution for the buy side is peer-to-peer matching in FX swaps, especially around the month-end, however the two also discuss the reasons behind FX HedgePool launching a mid-month matching service.

From tracking error, through pre-hedging, to access to liquidity, the landscape is changing for the buy side seeking to hedge their FX exposures, and this is prompting a re-think over operational procedures as well as how the buy side accesses the FX market.

Download now on Apple Podcasts and Spotify or from The Full FX website, to hear all this and more.

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