The Full FX Podcast: Currency Matters
Posted by Colin Lambert. Last updated: April 27, 2024
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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