Cymba Technologies a solutions provider to the investment management industry has partnered with FXall an award-winning multi bank trading portal.
FXall offers trade execution services to buy and sell side firms, pooling liquidity form the major banks and financial institutions. Cymba Technologies provides real-time portfolio analysis tools to money managers in FX, Equities, Fixed Income and Futures.
FX has been gaining momentum as volumes have been growing around 25% since 2007 till present (BIS survey 2007 $3.2 trillion ADV and $4 trillion in 2010). Investment managers have been attracted to the volatility and trading opportunities currencies offer.
With increased trade and exposure to global equities portfolio managers are exposed to currency trading, FX overlay funds have jumped in trade volumes. Currency overlay funds manage a firms exposure e.g. a UK-based portfolio manager who has X amount of equities/ funds in Japan will have Yen denominated
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exposure, a currency overlay firm will specifically be monitoring the exposure and use instruments such as forwards, swaps and options to ensure the firm does not lose out on exchange rate fluctuation.
FXall had a record trading month in August 2011 where the firm recorded $140 billion in daily trade volumes.
Cymba Technologies affiliation with FXall shows positive signs for overall growth in the FX markets, although recent regulatory changes in the US for CTA’s and CPO’s means that firms will need to be regulated with CFTC if they are offering FX based investment services under new Dodd Frank rulings.
Forexmagnates Q4 report will be exploring the Dodd Frank legislations and how they effect the FX industry, in addition a close examination at FX trade volumes in the institutional market.