e-Forex-Nov-23

Takeaways from TradeTech FX in Paris September 2023
RECENT EVENT
Alexander Nowak (JPM) and Gordon
Noonan. It was under Chatham
House rules, so I’ll just give a broad
generalisation of the discussion. One
topic that came up several times was
that of TCA, and how in spot it is
more developed, with solutions like
TradeFeedr. However, it was noted that
in other areas like swaps TCA isn’t as
well developed. In swaps of course
it is is more difficult because of the
need to understand dynamics around
things like broken dates, which a simple
interpolation may not necessarily
capture if you are trying to create a
benchmark. If you do TCA, there needs
to be some sort of benchmark to judge
against your own executions. There
was talk of using a CLOB for swaps,
although there might be differing
incentives for this amongst market
players. This would help solve the data
problem associated with swaps.
DIGITAL ASSETS
One thing that I remember on my
first TradeTech FX, was that there was
a discussion about digital assets. At
the time it seemed very exotic! Whilst
digital assets are not still mainstream,
the market is definitely maturing,
and there was a digital assets panel
moderated by Eva Szalay, with
panellists Yves Choueifaty (TOBAM),
Vinay Trivedi (Maxx Trader), Cassandra
Cox (LMAX) and Zahreddine Touag
(Woorton). One major discussion point
was whether the ETF on bitcoin spot
would be approved. The consensus
was it would be and Choueifaty noted
how having the ETF would make it as
easy to buy bitcoin as any other asset
available as ETFs. Touag also noted
that many larger players were getting
interested in digital assets.
Where will FX markets be in another
decade at TradeTech FX? I’m sure it’ll
be an exciting 10 years, but I suspect
a lot of the same topics will reoccur,
but (to paraphrase Eric Morcambe) not
necessarily in the same order!
18 NOVEMBER 2023 e-FOREX