GFMA Event Highlights the Different Paths to FX

Last week, the Global FX Division, part of GFMA, held its third Next Step FX gathering in London. Eva Szalay went along and provides the following observations…

There are very few people in the foreign exchange industry who fulfilled a childhood ambition with a career in currencies. Arguably, this could be a visibility problem, since The Adventures of Colin from Compliance has yet to become a bestseller childrens’ book and the world is still waiting for FX Dealer Barbie.

As a result, the industry is rammed with people with a host of unrelated and vaguely relevant skills and backgrounds, who all just sort of “fell into currencies.”* What kept them there, regardless of whether they’d gone from bodybuilder to hedge fund PM, or from chiropractor to heading electronic distribution at a bank, is the rush from working in an unpredictable, hugely competitive global business, trying to serve a wide range of clients while also making money.

This was one of the key takeaways from the third Next Step FX gathering on June 6 in London, organised by the Global Financial Markets Association. The event, held at the offices of RBC in the City was a Diversity, Equity and Inclusion event showcasing the FX market. It saw senior leaders from banks sharing views and experiences about their progression and careers as well as the ways the industry and its market structure changed over time.

Panellists discussed a wide range of topics including advice they’d give to their younger selves and the impact of new technologies on the market. One poll question asked participants whether a degree in economics was a requirement for working in FX? There was near universal agreement among both the audience and speakers that that was not the case, in fact the diversity of backgrounds and fields of study just added to the appeal of the FX industry.

Other discussions focused on the impact new technologies such as AI and blockchain and DLT are having on the market, as well as changes in the dealer-client relationship and its consequences for those in sales and trading roles.

The afternoon kicked off with remarks from James Kemp, MD for the Global FX Division, technology, operations and policy divisions at GFMA and AFME, followed by a speech from Sian Hurrell, global head, sales & relationship management & head of global markets Europe, RBC Capital Markets.

The first panel discussion covered market structure, risk management as well as changing trends, moderated by Heather Orrico, co-head of global macro Americas, BNP Paribas. The discussion highlighted the challenges dealers face when navigating client behaviours and highlighted the importance of having a diverse set of people on both trading and sales desks. The panellists were Lucinda Lawrence, co-head EMEA institutional FX, Barclays; Salimah Dharssi, FX options trading, Bank of America; Sarika Jajoo, head of electronic distribution at Lloyds Bank Corporate Markets; Toby Baker, global head of FX trading, T. Rowe Price; and Liam Fields, deputy treasurer, Intermediate Capital Group.

The introduction to the second panel came from Rajesh Venkataramani, head of global FX options and G10 FX Ttading and co-head of global short term macro trading, Goldman Sachs International. The Future of the FX Market –  The Market Tomorrow, was moderated by Elsa Lignos, global head of FX strategy & central bank coverage, head European institutional FX & futures, RBC Capital Markets, who put forward the idea that new entrants to the space don’t necessarily have to have business degrees.

Ayesa Latif, global head of FX products at Citi, emphasised the changes that staff on sales and trading desks needed to make to accommodate the many ways clients engage with banks, highlighting the importance of breaking down silos around different desks such as e-trading, voice and algos. She pointed to T. Rowe Price’s Baker in noting that clients deal in many different ways and arrangements at banks have to reflect that. “Sales and trading will have to do more,” she said, adding that future staff need to upskill on the quant side but also develop an understanding of fundamental drivers of markets to mirror the holistic approach traders take on the buyside.

A poll of the audience revealed that inter-personal skills were top of the list of requirements for future industry entrants, with Kimiya Minoukadeh, head of e-FX quant trading, ING saying that the prioritisation of STEM subjects that was so strong a few years ago has almost reversed. She said that there is a growing realisation that being able to talk to programmers is more important than for everyone on the team being able to code.

Lu Fu, head of e-sales and digital transformation, Global Markets, EMEA at Mizuho, meanwhile, emphasised the importance of having a diversity of thinking on teams while Shuo Wu, global head of FX forward e-trading at Deutsche Bank told the audience that life before FX has no bearing on one’s career prospects in the currencies industry: he once hired a professional bodybuilder who has since become a successful PM at Citadel.

The event concluded with remarks from Janet Dawson, managing director, Global Foreign Exchange Division, GFMA, Janet Dawson.

Oh, and the advice panellists would give to their younger selves? “Always start the working day with the best possible attitude,” said Richard Anthony, global head of FX e-risk and commodities at HSBC.

*The writer of this article can report a similar experience:  the company I worked for as a young reporter in 2009 was making a big push into covering currencies so an opportunity opened up there. 15 years later…