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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