Equity investors that can’t stomach the inflated cost of stock index puts are turning to the foreign exchange options market in search of a cheap hedge.

The question facing the bargain hunters is whether a cheap offset will be a reliable offset during the next equity meltdown – but FX markets have other . . . → Read More: Bargain-hunting equity hedgers turn to FX

The Covid-19 pandemic has laid waste to many investment strategies, but at least one contrarian execution strategy has emerged with a ringing endorsement – the decision by Eaton Vance to voluntarily clear the lion’s share of its foreign exchange derivatives.

Over the past 18 months – the period during which the firm launched . . . → Read More: FX unlimited: how Eaton Vance tackles credit constraints

Investors are increasingly hedging the foreign exchange exposures from their Chinese bond portfolios in the onshore market, following recent rule changes that have opened the market up to more competition.

Banks say hedging costs have fallen as a direct result of legislation passed in January to allow foreign investors to hedge currency risk . . . → Read More: RMB hedging comes onshore as regulators liberalise FX market

Mark Johnson was sentenced in April 2018 to 24 months in prison and a $300,000 fine

Mark Johnson, the former global head of foreign exchange cash trading at HSBC, is hoping to take his years-long legal battle with US prosecutors to the Supreme Court.

Johnson filed a petition on June 19, asking for . . . → Read More: Johnson seeks US Supreme Court hearing

Malaysia’s Bank Negara has done better than many in tackling currency speculators, but the next chapter – easing back on currency controls – will be harder to write.

From India to Indonesia, Asian central banks have been locked in a war with that bête noire of monetary policy: the offshore currency speculator.

These . . . → Read More: Malaysia has triumphed in FX reforms – but what comes next?

Companies in Malaysia are looking to use foreign exchange options as a cheaper way of hedging currency exposure, dealers say. The move follows a surge in US dollar/Malaysian ringgit volatility.

“Before the beginning of the year there was no volatility in the market and so there was not much upside in doing an . . . → Read More: Jittery ringgit spurs options growth in Malaysia

When we published an in-depth look at last look disclosures from the top 15 spot foreign exchange liquidity providers (LPs) in 2018, there were mixed reactions from the subjects.

Some were a bit miffed that people were poking around in their disclosures and refused to co-operate.

Others saw sunlight as the best disinfectant . . . → Read More: Games of tag need to end

By all accounts, markets have been relatively subdued for the past few years. Simon Campbell, group head of trading at CMC Markets, discusses how – while there have been occasional flurries of volatility around Brexit, the US elections and the trans-Pacific trade war – the realisation that the Covid?19 pandemic would wreak havoc on . . . → Read More: How did markets fare with volatility in the new liquidity landscape?

The variables that help forecast the future direction of asset prices are a hot commodity. Every time predictability is discovered, it is eventually either arbitraged away or labelled as a risk factor. The former is commonly known as alpha, while the latter is often referred to as alternative – or smart – beta. . . . → Read More: Sell at dawn and go away – but come back after lunch

As the end of the first quarter approached amid the dollar funding squeeze driven by Covid-19, some asset managers rolled their FX swaps before month-end to avoid a price jump. As the end of the second quarter draws near, dealers say they’re having conversations with clients about repeating the strategy.

“We are starting . . . → Read More: Banks tout early roll dates for FX swaps as quarter-end looms