profit & loss events 2011 yearbook

PROFIT & LOSS EVENTS2011

YEARBOOK

SINGAPORE • BOGOTA • MEXICO CITY • LONDON • NEWYORK • CHICAGO • SANTIAGO • SAO PAOLO • TORONTO

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PROFIT & LOSS EVENTS 2011 YEARBOOK

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The foreign exchange market is the largest wholesale market in the world,with daily volume averaging $4.7 trillion per day at latest count. Profit & Lossis the premier publisher and conference producer for this massive industryand we are proud to lead the field with our ground breaking programmes,world class technology exhibitions and focus on new and growth markets.

Our aim has always been about being part of this market that we care deeplyabout, promoting the industry through discussion, analysis, education andnetworking.

Profit & Loss began hosting industry conferences in January 2000 with astanding room only series in London and New York that looked at “What ise-FX?” and featured a “whoʼs who” of e-FX in those early days.

Over the past decade, our conference roster has grown to a dozen annualconferences and specialised workshops. In 2011, we added two new loca-tions - Colombia and Chile - as well as FX as an asset class workshops fornew market entrants from the high frequency and hedge fund sectors.

Profit & Loss Forex Network and Profit & Loss FX Growth Markets eventsdrew record numbers of attendees and exhibitors to our international eventsthis year. More than 3,000 senior industry peers have joined us at confer-ences in Europe, Asia, North and South America throughout 2011.

Profit & Loss Forex Network Chicago in particular has gone from strength tostrength, and is currently the largest annual event for the wholesale FX indus-try globally, drawing 550 people to our September conference.

We hope you enjoy this roundup of the year, and will join us in 2012 for whatpromises to be another year of growth, change and opportunity in the FX in-dustry.

Visit our website at www.profit-loss.com for programme, sponsorship and reg-istration information for our 2012 events calendar.


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THANKS TO OUR ANNUAL FOREX NETWORK 2011 SPONSORS:



THANKS TO OUR 2011 EVENT SPONSORS:



contents:

Profit & Loss Asia 2011: Singapore, January 19-20 . . . . . . . . . . . . . . . . . . . .8

FX as an Asset Class HFT Workshop: New York, February 10 . . . . . . . . . . . . . . . . . . . . .11

FX Growth Markets Colombia 2011: Bogota, March 1 . . . . . . . . . . . . . . . . . . . . . . . . . .12

FX Growth Markets Mexico 2011: Mexico City, March 3-4 . . . . . . . . . . . . . . . . . . . . .13

Forex Network London 2011: London, April 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . .16

The Digital FX “Eye on the Client” Awards dinner: London, April 7 . . . . . . . . . . . . . . .18

FX as an Asset Class HFT Workshop: Chicago, May 19 . . . . . . . . . . . . . . . . . . . . . . . . . .20



Forex Network New York 2011 New York City, June 9 . . . . . . . . . . . . . . . . . . . . . .22

The Digital Markets Awards: New York City, June 9 . . . . . . . . . . . . . . . . . . . . . .24

The Profit & Loss Hall of Fame:New York City, June 9 . . . . . . . . . . . . . . . . . . . . . .24

Forex Network Chicago 2011: Chicago, September 21-22 . . . . . . . . . . . . . . . . . .28

Growth Markets Chile 2011: Santiago, October 17 . . . . . . . . . . . . . . . . . . . . . . .30

Growth Markets Brazil 2011: Sao Paolo, October 20 . . . . . . . . . . . . . . . . . . . . .31

Profit & Loss Canada 2011: Toronto, November 9 . . . . . . . . . . . . . . . . . . . . . . .32

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With much of theconversationdominated by the ‘will

they, won’t they’ debateconcerning FX and regulation,some of the most importantdiscussions centred on the abilityof banks and trading venues tohelp clients navigate the uncertainwaters.

The role of China in widerAsia also dominated the agendaover the two days. In a discussionabout Growth Opportunities inAsia, Robert Savage, CEO ofTrack.com, picked up on therunning theme of China’s growthpotential, adding an air of cautionto the debate. “It seems odd tome that people are blind to theidea that China can do no wrong– that it’s immune to the businesscycle – that somehow it canmajestically manage perfectslowdowns and hit theaccelerator at the exact rightmoment without triggeringmassive inflation,” said Savage.“That inflation problem is notjust China’s problem. Looking atgrowth in the region, it’s nolonger asynchronous – one of thepositives that used to define theregion was the different stories to be told in places likeIndia, Taiwan, Indonesia, and China. But that’s less and lessthe case and increasingly, China is the 800 pound gorillaeating all the bananas – it puts a burden on China’s policy ina more difficult way.”

Charlie Lay, then head of regional research at Forecast inSingapore, turned the discussion to the large investmentflows the region is seeing. The problem with banks in Asiaisn’t a lack of liquidity, but in fact, too much liquidity, hesaid. The risk of not managing that money prudently means alot of that money could go into speculative activity.

“One way or another, money is going to go into property,equities – markets that cause bubbles here – so the bigproblem we face is more about how to manage that money,that liquidity and money supply growth. An interestingstatistic out recently is M2 over GDP – since the crisis, thisratio has jumped 180% just over the last three years. So thereal problem is all about managing liquidity,” Lay contended.

In a discussion about prime brokerage, algorithmic andhigh frequency trading, Ed Blair, then director of KomodoCapital Management shared his reasons for moving fromLondon to Singapore to start his hedge fund.

High Frequency, Derivatives HotTopics at First P&L Singapore Event

Singapore, January 19-20

Profit & Loss headed to Singapore for the first in an annual series of conferences in partnershipwith ACI Singapore. The inaugural event attracted around 250 market participants to the two-day conference and trade exhibition. Video clips from this and other P&L conferences can befound at www.profit-loss.com

Addressing the Singapore audience above (left) is Zhu Rong, vice general manager, FX marketsdepartment at China Foreign Exchange Trading Systems (CFETS), and (right) Loh Boon Chye,chairman of the Singapore Foreign Exchange Market Committee and MD at Deutsche Bank.



Starting top left: Eddie Tan, regional treasurer, Asia, Citi;

Ed Blair, director, Komodo Capital (now MicroSecond Trading);

Michael Nelson, assistant general counsel and SVP, the Federal ReserveBank of New York;

Inaugural event draws a packed room.

Blair started his career in Chicago and eventually ended upas head of systematic trading at Bank of America in Londonuntil he left in 2007 to start the hedge fund. “I didn’t look atopportunities in London or the US after I left banking. I wascurious to come to Asia where I thought there would be a lotof growth opportunities still available – and to a certainextent, the chance to run the clock back by trying smaller,more fragmented markets,” he said.

“I’m very bullish on Asia,” he continued. “The rise ofChina – I buy into that story to a certain extent, and thenSingapore within Asia. Singapore is one of the bestenvironments for starting a hedge fund in terms of theregulatory, tax and personal standpoint – it checks all thoseboxes. But the barriers to entry for a small hedge fund hereare significant.”

Blair said his firm has been less involved on specificstrategies for individual Asian currencies such as Korea andHong Kong, instead trading around 95% G5. “We’re tryingto build up cautiously in some of the Asian currencies andare keeping a close eye on the renminbi,” he noted. “Asyou’d imagine, for high frequency trading I need to be ableto trade those currencies frequently, and a lot of thosecurrencies don’t trade frequently and electronically. There issome liquidity through the voice brokers or means notaccessible to my algos; it can be very difficult to findhistorical data. But there are some twists and turns and

quirks that are appealing to us, Aussie and Kiwi have theirown little idiosyncrasies which are helpful; Korea has ahealthy futures contract, which is an interesting angle; andSingapore is managed against the nominal effectiveexchange rate basket, which means there are more games wecan play there. So sitting in London, the world is clear: euro,yen, sterling, etc – but when you get to Asia, you really haveto specialise. You can’t go out and find the strategies thatmake your year, or make you a big chunk; it’s more aboutputting a lot of little eggs in a lot of little baskets. But ifyou’re willing to dedicate the time, and you have to be sittinghere in Asia to do so, you can learn them better and find aniche that the guys in London and Chicago have a hardertime seeing.

So what does it mean for a Singapore-based trader when thelargest FX market is trading in London? “You see blips whenother big economies come in, but we also see those blips whenthey’re asleep – which is partly why we’re here,” said Blair.

The FX derivatives panel took up the regulatory baton,with Eric Maine, head of product and research at SingaporeMercantile Exchange, noting that it is not a foregoneconclusion that regulatory bodies like MAS will fall in lockstep with other countries. “From Asia’s perspective, thefinancial crisis is something we didn’t get ourselves into, buthas been seemingly put upon us. What it means for us is thatthere are certain opportunities that may arise for exchangesoutside that environment,” he said.

All roads tended to lead back to China, with a discussionon retail FX prompting Trent Beacroft, managing director atHotspot FX, to suggest that Chinese trading in retail FX willone day “dwarf Japanese retail trading”. �



In our first dedicated FX workshop forthe high frequency sector, more than200 attendees heard from panellistsabout the nuances of trading in thecurrency market, its platforms andlatest technological developments, aswell as the nuts and bolts of how tostart your own HF firm.

New York, February 10

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At the first of what will become an annual conferencein Bogota, Colombia, Profit & Loss attracted anunprecedented 300 attendees for an opening

keynote address by Pamela Cardozo, chief monetary andreserve affairs officer at the central bank, Banco de laRepublica de Colombia.

The subject of a regional spot market covering Colombia,Peru and Chile dominated discussions throughout the day.Cardozo compared the performance of assets in Peru andChile with Colombia, noting that analysis of stock pricevaluation and volatility suggests that the Chilean market ismost at risk of over-appreciation, followed by Peru.

Meanwhile, Andres Macaya, business manager of SET FX,the local spot platform affiliated with the Colombian StockExchange, revealed plans for a regional spot market servingthe three countries. Daniel Niño, director of economicresearch and strategies at Bancolombia Group, pinpointedthis development as one of the majoropportunities facing Colombia.

Further panels looked at the opportunities andchallenges faced by those trading and investing inColombian financial markets. As was noted,Colombia has enjoyed a reversal of theconsolidation trend of recent years and isexperiencing growth as evidenced by theconsiderable number of new entrants to the market.

Also featured in Bogota were Nicolas Alvarez

Hernandez, senior economist in the capital markets group ofthe Financial Policy Division at the Central Bank of Chile,who shared insights into Chile’s successes with free tradeagreements, while Felipe GaviriaLievano, regulation deputydirector at Autorregulador delMercado de Valores, provided animportant overview ofColombia’s regulatoryenvironment.

Both conferences weresponsored by Diamond sponsorGFI Group and Platinumsponsor Thomson Reuters, andsupported by a dozen supportingsponsors, exhibitors andpartners.

PROFIT & LOSS FX GROWTH MARKETS CONFERENCE SERIES

Profit & Loss Heads to BogotaColombia, March 1

Profit & Loss took its successful FX Growth Markets series on the road in a two-hander thatstarted in Bogota, Colombia for an inaugural event on March 1, and then moved to Mexico Cityfor March 3-4, the fourth year for P&L in Mexico.

Top to bottom: Pamela Cardozo, chief monetary andreserve affairs officer, Banco de la Republica deColombia; “Growth Opportunities in Latin America”panel; Juan Pablo Amorocho, General Manager, GFIColombia; standing room only at inaugural P&Lconference in Bogota.



Trading conditions for the peso market are now verysimilar to what they were before the recent globalfinancial market crisis, with bid-ask spreads having

come down sharply after increasing dramatically in Octoberof 2008, explained Jaime Cortina, director of operations atBanco de Mexico.

Before the crisis, daily turnover of FX operations executedthrough the Thomson Reuters systems were about US$5.5billion, while currently the average is about $5 billion, sodaily trading volumes have recovered to levels very similar tothe ones observed in 2007, he noted. “In fact, volumes in thepeso/dollar market have recovered faster than in markets ofcomparable currencies such as the Polish zloty, the SouthAfrican rand, and the Turkish lira,” said Cortina.

Referring to the BIS’s most recent triennial central banksurvey of FX turnover, Cortina noted that the Mexican pesoranks thirteenth amongst the world’s most traded currenciesand third amongst emerging market currencies – just belowthe Korean won and the Singapore dollar.

Further, he noted, compared to the 2007 survey, dailyvolumes grew 15%, despite the fact that the worst financialcrisis in many years occurred between both surveys.Additionally, volumes traded locally represented one-third oftotal volumes, the other two-thirds were traded with noMexican financial institutions involved.

In fact, said Cortina, recovery in trading volumes has beenparticularly important in cross border operations. “This canbe explained due to both more liquidity in different timezones where the peso has traded for years – Europe andAmerica (New York) – and also due to new coverage in theAsian time zone. The peso has become more and more a 24-hour currency. In addition, increased algorithmic tradingfrom abroad helps explain why volumes overseas haveincreased more than volumes traded locally,” he said.

Algorithmic trading has gained important market share inthe last three years, he added. “Again, using ThomsonReuters data, we can see that currently a little more than 40%of overall trading in the peso on their platforms is donethrough machines, or algorithmic trading. Although this 40%is still below the percentages we see in currencies such as thepound, the euro and the Canadian dollar, the main message isclear: algorithmic trading is becoming more and more

important over time,” Cortina said. In terms of price action, the peso is also trading at levels

just slightly higher than before the crisis, he continued.“Although the peso exchange rate is still above the pre-crisislevels, short-term volatility is now trading at similar levels tothose seen in the first quarter of 2008,” said Cortina. “Alsoworthwhile to mention is how the average trade has evolved;it has come down from a size of about $2.5 million to a sizecloser to $1.5 million. This can be explained by the fact thatalgorithmic trading has increased its market share and thatthe trade size through algorithms is smaller than throughmanual trades by traders.

“Today, the implied distribution of the peso is much morebalanced than what we saw in October of 2008 and inFebruary of 2009,” he added. “Over the past six months, wehave seen the peso strengthen vis-a-vis the US dollar. Therehave been many stories around this appreciation, somerelated to capital flows looking for higher yields, somerelated to fundamentals that explain this behaviour. I think

PROFIT & LOSS FX GROWTH MARKETS CONFERENCE SERIES

Banxico’s Cortina Showcases Peso Performance

Mexico City, March 3-4At the fourth annual Profit & Loss FX Growth Markets conference in Mexico last month, JaimeCortina, director of operations at Mexicoʼs central bank, Banco de Mexico, set the tone for thetwo-day conference with an overview of the structural recovery of the peso/dollar market, aswell as the successes of the put option mechanism, which was detailed at the previous yearʼsProfit & Loss conference in Mexico City. Video clips from this and other P&L conferences can befound at www.profit-loss.com

Jaime Cortina, director ofoperations, Banco de Mexico



both of them are partially right, although I tend to think thatthe fundamental story is stronger than the capital flow.”

“Let me explain to you why,” he continued. “First of all,the Mexican economy has recovered faster than what waspreviously anticipated, led by the better performance of theUS economy. In that respect, the recovery has been led bythe external sector, which in fact continues to show verystrong numbers in spite of the appreciation that the peso hasexperienced lately. In addition, forecasts of future growthhave also been revised upward. For example, at the end oflast year the consensus for growth in Mexico in 2011 was3.65% and today is closer to 4.20%. Finally, althoughgrowth has been led by net exports, the latest GDP figuresnow show that growth is now much more broad based;that is, internal demand is also starting to pick up at afaster pace.

“Higher oil prices, up to now, have represented apositive shock for the Mexican economy. On the one hand,they have contributed to higher net exports. On the otherhand, they have also had a positive impact on publicfinances, since tax recollection from Pemex representsmore than 30% of total tax income. However, it isworthwhile mentioning that if recent rises in oil pricesprove to be more permanent, and the increase in oil pricesnegatively affect growth in the US(consumer confidence, etc), thisexternal shock could go frompositive to negative. So in fact, oilcould turn out to be a negativefactor rather than a positive one,”he said.

Another factor Cortina said alsohelps explain the strength of the

peso is the recent approval of a $72 billion flexible credit linefor two years, replacing the $48 billion line that expired inApril. “This line is positive on two fronts: Our externalbalance sheet is now more solid, $120 billion in reserves plus$72 billion in the FCL, a position of close to $192 billion. Inaddition, to obtain the credit line, Mexico had to comply withcertain criteria set by the IMF. Therefore, the FCL is also avery good bonding mechanism with the market sinceincentives are in place to maintain sound macroeconomicpolicies because if we do not do that, we have the risk oflosing the FCL,” he continued.

Clockwise starting top right:

Luis Opazo Roco, manager offinancial stabiilty, Central Bankof Chile

“Next Generation Technology”panel discussion;

Another packed house at P&LMexico

Gabriel Casillas, executivedirector, chief Mexicoeconomist, JP Morgan (above).

The entry of Mexico’s local government bonds to Citi’sWBI is another important factor that explains peso strength.“The WBI is a bond index that many global institutionalinvestors, real money investors, use as a benchmark for theirportfolios. In fact, this index is used by many Asian fundsthat before this did not buy assets denominated in pesos.This is why the inclusion of the Mexican bonds in the indexdid bring important capital flows to the country,” Cortinanoted.

“In fact, in 2010 long term government bonds owned byforeign investors grew by roughly $12 billion, and the majorpart of these flows can be attributed to the WBI. In addition,recently (since December 2010) Cetes owned by foreigninvestors have also grown substantially, although we think animportant proportion of this position is hedged againstcurrency fluctuation and it is really taking advantage of thearbitrage that recently existed between Cetes rates and pesorates implied in the FX swap market.

“Notwithstanding what I mentioned before, we have alsoseen important short-term capital flows seeking yield. In thatregard, Mexico has not been different from what has beenseen also in many other emerging economies,” he said.

“The implied peso rate shows that at least through short-term FX swaps, a lot of long peso positions are being funded.During most of this year, this rate has stayed below 4% wheninterbank repo rates are closer to 4.5%, and we have seenperiods where it has been lower than 2%,” he added.

Mexico’s response to capital inflows, said Cortina, has

been different to that of other countries.“We have not changed our reserveaccumulation policy, we have notintervened in the FX market other thanthrough our monthly rules based option,and we have not introduced macroprudential, taxes or capital controls. In

fact, Mexican authoritieshave repeatedly assuredtheir commitment to afloating exchange regime.

“In spite of this, fearsthat the peso couldappreciate sharply since itwas one of the fewcurrencies where nointervention or capitalcontrols were beingintroduced did notmaterialise and in fact it

continues to be one of the few currencies that is still tradingbelow the levels prior to the financial crisis.

“In the long run, we are sure that being consistent with ourpolicy will pay off and even more since we will continuebeing net importers of foreign capital, and we think investorswill appreciate knowing that in this country policy isconsistent,” he said.

Meanwhile, with regards to the put options mechanism,Cortina said it has been successful in accumulating reserveswithout introducing distortions to the market. From March2010 until now, Banxico has accumulated $5,480 millionthrough this mechanism.

“Its design has favoured dollar purchases when the peso ison an appreciation trend and inhibited it otherwise,” heexplained. “A competent communication strategy and the useof this instrument has improved the efficiency of themechanism.”

He added that only during two months, May andNovember 2010, was the option not exercised. In fourmonths it was exercised partially and in six months it wasexercised completely.

In conclusion, Cortina reflected that trading conditions inthe peso FX market have recently improved as Mexico’seconomic recovery looks stronger and more sustainable, andthat this is a result of favourable fundamentals. He also notedthat Mexican authorities maintain a strong commitment tothe floating exchange rate regime.

This year’s Profit & Loss FX Growth Markets event drewnearly 300 attendees and, as was the case in Bogota, wassponsored by Diamond sponsor GFI Group and Platinumsponsor Thomson Reuters, and supported by a dozensupporting sponsors, exhibitors and partners. �



Clockwise from top:

Regulation and the OTC Markets panel discussion

Dan Torrey, ICAP, talks on the FX Prime Brokerage,Algorithmic and High Frequency Trading panel

Mark Sandomeno, GFI Group



Profit & Loss Forex Network LondonLondon, April 7

Profit & Loss kicked off the Forex Network series of conferences in London on April 7th, attracting a recordturnout of 300 people. Discussions amongst industry leaders delved into the future of the trading plat-forms, ongoing regulatory reforms, operational risk in the era of social media, high frequency trading’simpact, derivatives and post-trade developments. Visit www.profit-loss.com for P&L’s full range of conferences, including the FX Growth Markets series aswell as workshops.



This is the 10th year of Digital FX Awards unveiled by Profit& Loss and we think we can say without argument thatthese were revealed at a time of great uncertainty

for the FX market. The key was, of course, regulationand its potential impact on single dealer platforms.Doubt was the word of the year.

One thing that is certain, however, is that whateverthe outcome of the regulatory machinations, clientsexpect their banks to ease the stresses and strains of thetransfer to the new world. In this year’s awards we have tried toreflect this sentiment by drilling deeper into certain aspects of thebanks’ services likely to be impacted most by those client demands.In effect we have up-weighted post-trade services at the expense ofsome front office functions such as FX options and private labelservices.

This change has manifested itself in a slightly different look tothe awards this year. Specifically, we have separated out prime bro-kerage/clearing from straight FXPB. The latter remains important,but the former is probably a next generation service – something wehave tried to reflect.

Also changing this year is the algorithmic execution category.Here, we have broken out agency execution services, which are in-creasingly popular, from platform execution services, ie, a platformthat allows clients to control their execution (to a degree). As we re-port in this issue, the standard for algo execution tools is not partic-ularly high as far as some clients are concerned. This is the secondyear we have received this feedback.

Finally, we have tried to reflect at the top of the awards, excel-lence in foreign exchange itself. Ever since Barclay Capital’sBARX and Deutsche Bank’s Autobahn hit the top of our awards ithas been about more than just FX, this year we are introducing anaward for just that – a bank’s pure FX (pun intended) service.

As to the general situation within the e-FX space, it has been aninteresting year, but in keeping with the 2009-10 awards, not a hugeamount of innovation to show for it. Banks are continuing to rein-force the robustness of their pricing and risk engines, both of whichhave received several new tests, not least with the surge in marketactivity during the Greek crisis in April/May 2010. “Below the wa-terline” has been a popular phrase this year, as banks have contin-ued the reinforcement work that started in 2009.

In last year’s awards we highlighted two areas of client disap-pointment, if that is the right word – order execution technology

and emerging markets functionality in general. We believe we areprobably 75% of the way along the path to a good choice of flexi-

ble, interactive and intuitive order tools. The work is beingput in by the banks but pricing and risk management

systems must come first and the level of complexityinvolved in offering flexible execution tools shouldnot be underestimated.As for emerging markets, well if the customers are

disappointed they are being unreasonable (and to be fairwe received no criticism at all this year). Several banks have up-

graded their emerging markets offerings to the extent that a clienthas a broad range of choice in NDFs, can leave orders at certainbanks, trade under one month and even trade on a local-facing plat-form. Without doubt, emerging markets is the area of our industrythat has advanced the most over the past 12 months.

The breakdown of awards this year reflects a steady trend that hasbecome more apparent over the past two or three years in that theawards are earned on merit. We do not hold, as appears to be thecase with certain other awards, that different winners are required tomake it interesting – our ethos is very much win by merit, and meritalone. If competitors think that BARX and Autobahn have domi-nated these awards for too long then the only solution is to workharder on their technology and general service proposition – recog-nition will be forthcoming.

This is already happening of course, because any gaps that ex-isted three years ago are being steadily eroded, hence we issue ourannual disclaimer – the difference between the platforms we judgeis wafer thin, hence why the P&L Report Card is as important asthe actual winner. Often, we end up with three or more names foreach category from our unofficial polling of user opinion. It is thenup to us to highlight a minor difference.

While we do not judge volume – rather we seek to pick out gran-ular excellence – we do believe that excellent technology begetsvolume and market share. As to the human service behind the tech-nology, that is not judged by us, rather that is for clients to judgewith their business.

We have only had three winners of our top award in 10 years butthis could change in 2012. There are several new entrants to the “e”industry – banks with strong balance sheets, global operations andthe ability to invest. We suspect that our awards in 2012 will lookquite a bit different, but for now, we humbly present the 2011 Profit& Loss Digital FX Awards…

“Eye on the Client”

2011 Profit & Loss Digital FX Awards

Eye on the Client

Profit & Loss Digital FX Awards DinnerLondon, April 7

Spirits were high at the 10th annual Digital FX Awards, unveiled by Profit & Loss on the evening ofApril 7th in London. Big winners of the evening collected multiple awards - with Barclays Capital winning best overallplatform, as well as three more awards; Citi scooping best FX platform amongst its total of five;Deutsche taking home three. Bank of America Merrill Lynch, BNY Mellon, Credit Suisse, GoldmanSachs, JP Morgan, Morgan Stanley, Nomura, Societe Generale and UBS also scored big on the night.


18 I www.profit-loss.com



Best Overall Platform Barclays Capital

Best FX Platform Citi

Best Multi-Product Platform Barclays Capital

2011 Profit & Loss Innovation Award Societe Generale

Best FX Options Platform Credit Suisse

2011 Editor’s Choice Award Credit Suisse

P&L’s One to Watch in 2011 Bank of America Merrill Lynch

Best Rates Platform Barclays Capital

The 2011 API Award JP Morgan

Client Segment Awards

Best Banks’ Platform Goldman Sachs

Best Corporate Platform Citi

Best Real Money Platform BNY Mellon

Best Leveraged Sector Platform Deutsche Bank

Best Traders’ Platform Nomura

Best Retail Platform CitiFX Pro

Best Emerging Markets Platform Deutsche Bank

Services

Best Post Trade Services UBS

Best Prime Services Deutsche Bank

Best FX Prime Brokerage Citi

Best Execution (Agency) Credit Suisse

Best Execution (Platform) JP Morgan

Best Order Management Citi

Best Research Portal Morgan Stanley

Best Structured Products Platform Barclays Capital

Best Navigation Morgan Stanley

The Digital FX “Eye on the Client” Awards Winners



P&L’s Chicago HFT Workshop Chicago, May 19

Intro to FX ECNs, Exchanges & Bank PortalsDrew Myers, Banyan

Sudhir Chikara, Takumi Matt O’Hara, Thomson Reuters

Jim Fischer, Drinker Biddle

Eisso VanderMeulen, Newedge

David Matteson, Drinker Biddle Craig LeVeille, CME PB & Credit Issues in the FX Market

Rob Gomprecht, BofA ML Joe Conlan, FCStone David Holmes, Typhon

Key Issues in Setting up a HFT Firm Vince Sangiovanni, GAIN GTX Bill Goodbody, Hotspot FX

Darren Jer, MarketFactory

FX as an Asset Class: High Frequency Trading Workshop

PROFIT & LOSS EVENTS2012PROFIT & LOSS FOREX NETWORK • PROFIT & LOSS GROWTH MARKETS

www.profit-loss.com

SINGAPORE BOGOTA MEXICO CITY

LONDON NEW YORK CHICAGO

SANTIAGO SAO PAOLO TORONTO



Profit & Loss Forex Network New YorkNew York, June 9

Profit & Loss Forex Network attracted more than 400 attendees and two-dozen exhibitors at theJune 9th event. With subjects covering market fragmentation, new market entrants, FX options de-velopments and new business development, the business program drew a standing room onlycrowd. The full day program culminated with a keynote presentation by Rep Joe Crowley, a mem-ber of the House Ways and Means Committee, who provided insight into the climate in Washington,as well as touched on such subjects as FX exemptions, derivatives and high frequency trading.

REP JOE CROWLEY PAUL MILLWARD, GFI JILL SIGELBAUM,TRAIANA

DAN TORREY, ICAP EBS

MARK SUTER, DIGITAL VEGA

RAY MCKENZIE, ICE

DAVE OLSEN, JPMDAVE REID, CITI

SANJAY MADGAVKAR, CITI FX PRO CRAIG LEVEILLE, CME



In a keynote address at Profit & Loss’sForex Network conference in NewYork, Democratic Congressman

Joseph Crowley told delegates that inter-national harmonisation was needed as theworld implements financial reform.

“I was pleased US Treasury SecretaryGeithner agrees with the need for regula-tors in Europe and Asia to harmonise theirregulations with the US or face a ‘race tothe bottom’. The current margin rules putUS firms at a massive competitive disad-vantage,” the Congressman told atten-dees. “Supporters say this is good; I donot see it that way. These draft marginrules do not stop any activities, they justpush it away from US banks and offshoreto less regulated markets in foreignbanks.”

Stressing the need for the US, and NewYork in particular, to protect its positionin global foreign exchange markets,Crowley stated, “I do not see how this isadvantageous at all. There can be a per-verse effect to over-regulation – the mov-ing of firms, businesses, activities andjobs out of the US; out of the scope of theUS regulatory system.”

The Congressman, who sits on theHouse of Representatives’ influentialWays and Means Committee and has beeninvolved in financial regulatory reformsince joining Congress in 1999, stressedhis support for initiatives by the USTreasury Department to make new regu-lations. But while he acknowledged hissupport for regulatory reform, he stressedthe final version was not what the groupof New Democrats, of which he is a lead-ing member, desired.

“The New Democrats drafted the pro-visions in the House-passed regulatory re-form bill to regulate the derivativesmarket,” Congressman Crowley ob-served. “The Senate, however, passed afar different bill. Election season cansometimes turn into a somewhat silly sea-son, and many of the Senators negotiatingthe regulatory reform legislation were fac-ing tough re-elections. Thus, the deriva-tives portion of the regulatory reform

measure became a bargainingchip. We had the former Chair-woman of the Senate AgricultureCommittee taking a position ofattacking the financial markets,and in particular the derivativessector.

“Tied with a Republican Sen-ate minority that effectively ex-cused themselves from theprocess and refused to work withmoderate Democrats like myselfto make changes to the Senatelanguage on derivatives to makethem more workable – these pol-itics gave us this perfect storm.

“Now, it is up to the regulatorsto hash out rules on implementa-tion,” the Congressman contin-ued, adding that the NewDemocrat Coalition has been“very engaged” in the process.“We welcomed the Treasury De-partment’s decision to exempt for-eign exchange swaps and forwards frommost of the derivatives rules requiredunder the Dodd-Frank Act, saying themarket already meets many of the law’sobjectives. In fact, New Democrats calledfor this action earlier this year.

“Like the Treasury Department, werecognised that the foreign exchangeswaps and forwards market already re-flects many of the Dodd-Frank Act’sgoals, including high levels of price trans-parency, effective risk management andelectronic trading,” he continued. “NewDemocrats also recognise the stability ofthe foreign exchange market and how itweathered the Great Recession withoutproblems.”

Congressman Crowley also made someobservations on the ongoing debate in USpolitical and regulatory circles over highfrequency trading. Pointing out that CFTCCommissioner Bart Chilton had stated theneed for stronger regulation of HFT in thewake of the “Flash Crash”, Crowleyagreed that regulations are needed.

“[Chilton] suggested greater over-sight, such as the testing of certain pro-

grams and perhaps some sort of creden-tialisation certification. He also men-tioned accountability for those who setoff a runaway program that roils mar-kets, whether it is innocent or not,”Crowley stated.

“Last month, SEC Chair MarySchapiro signalled her intent to increasescrutiny of high frequency traders, in-cluding the imposition of trading obliga-tions on HFT firms and called for areassessment of the “entire regulatorystructure” surrounding the firms, in partto determine whether the algorithms orstrategies used to generate and send or-ders are programmed to operate properlyin stressed market conditions.

“I agree that regulations are needed sothat HFT can be effectively overseen byour financial regulators and that the pub-lic has confidence in our market sys-tem. As with Dodd-Frank, however, weneed to be thoughtful in how we map outthe regulations. We need strong, workablerules that will protect the public while al-lowing for the continuation of permissi-ble activities in this country.”

CONGRESSMAN JOSEPH CROWLEY

Global Harmonisation Needed on Regulation

US legislator stresses the need to avoid regulatory arbitrage.



2011 Profit & Loss Readers’ Choice

Digital Markets AwardsNew York, June 9

Profit & Loss unveiled the winners of its 2011 Readersʼ Choice Digital Markets Awards at a dinner andceremony in New York with Citi and Barclays Capital scooping 10 awards between them.In the bank provider categories, Citi won six awards including Best FX Prime Brokerage, BestTrading Platform for Corporates, and Best Trading Platform for Hedge Funds while CitiFXPro wonBest Retail FX Platform. Barclays Capital received four awards, including Best Options Platformand Best Multi-Asset Class Platform. UBS was voted Best Post-Trade Services provider, Deutsche Bank won the Best Order Manage-ment award, Credit Suisse walked away with an award for the Best Algorithmic Trading Systemand JP Morgan won the Best Matching Platform award.It was also a night to remember for DealHub, which beat off stiff competition in the Best Post-TradeServices award, the category that received the highest number of votes. Hotspot FX won the BestTrading Platform for Hedge Funds award while 360T received an award for Best Trading Platformfor Corporates and FXall for Best Trading Platform for Asset Managers.Other winners on the night included Icap EBS, which received an award for the Best MatchingPlatform; GFI Groupʼs Forex Match for Best FX Options Platform, as well as GFI Fenics for BestRisk Management System (FX); Thomson Reuters for Best Market Data Platform; Traiana for theDigital Markets Innovators Award; SmartTrade for Best Multi-Asset Class Platform; and Alpari (UK)Ltd for Best Retail Platform. Currenex, Progress Apama, FC Stone, Barracuda FX and Calypso Technology also received awards.For the fourth year, Profit & Loss opened its website in April and May for readers to vote for thebest bank, broker and service providers across 14 key categories. More than 10,000 votes wereregistered in 2011, making it the largest response to date.

In 2009, Profit & Loss celebrated its 10th anniversary by establishing the Profit & Loss Hall ofFame, which sought to recognise those individuals who have made significant contributions to thegrowth of the foreign exchange industry. The Class of 2011 reflects that ethos, comprising peoplewho have long been held in great esteem by peers and colleagues, both professionally and per-sonally. It is with great pleasure that we unveil the next eight members of our industry to be hon-oured in the Profit & Loss Hall of Fame: Scott Brusso, Claudia Jury, Cliff Lewis, Martin Mallett,Richard Mahoney, John Nixon, David Schulz, Phil Weisberg.

Scott Brusso Claudia Jury Cliff Lewis Richard Mahoney John Nixon David SchulzMartin Mallett Phil Weisberg

Hall of Fame “Class of 2011”



2011 READERS’ CHOICE DIGITAL MARKETS AWARDS

Best Trading Platform for Corporates

Bank Providers1. Citi

2. Barclays Capital3. Bank of America Merrill Lynch

Non-Bank Providers1. 360T2. FXall

3. Currenex

Best Trading Platform for Hedge Funds


2= Barclays Capital2= Deutsche Bank

Non-Bank Providers1. Hotspot FX2. Currenex

3. FXall

Best Trading Platform for Asset Managers

Bank Providers1. Barclays Capital

2. Citi3. JP Morgan

Non-Bank Providers1. FXall

2. FX Connect3. Currenex

Best Retail FX Platform

Bank Providers1. CitiFX Pro

2. Barclays Capital3. dbFX

Non-Bank Providers1. Alpari (UK) Ltd2. Gain Capital

3. FXCM

Best Matching Platform

Bank Providers1. JP Morgan

2. Citi3. Deutsche Bank

Non-Bank Providers1. ICAP EBS

2. Thomson Reuters Matching3. Currenex

Best Post-Trade Services

Bank Providers1. UBS

2. Deutsche Bank3. Citi

Non-Bank Providers1. DealHub

2. Logicscope3. Thomson Reuters

Best Multi-Asset Class Platform

Bank Providers1. Barclays Capital

2. JP Morgan3. Morgan Stanley

Non-Bank Providers1. SmartTrade2. CME Group3. FX Connect

The Digital Markets Innovators Award

Bank Providers1. Barclays Capital2. Morgan Stanley

3. Citi

Non-Bank Providers1. Traiana

2. MarketFactory3. FXecosystem

Best Algorithmic Trading System

Bank Providers1. Credit Suisse2. JP Morgan

3. Barclays Capital

Non-Bank Providers1. Progress Apama

2. Flextrade3. SmartTrade

Best Options Trading Platform

Bank Providers1. Barclays Capital2. Deutsche Bank3. Credit Suisse

Non-Bank Providers1. GFI Forex Match

2. CME Group3. Digital Vega

Best Risk Management System


2. The Royal Bank of Scotland3. UBS

Non-Bank Providers (FX)1. GFI Fenics

2. Thomson Reuters3. Calypso

Non-Bank Providers (multi asset)1. Calypso

2. Algorithmics3. Thomson Reuters

Best Liquidity Aggregation Platform


2. Deutsche Bank3. The Royal Bank of Scotland

Non-Bank Providers1. Currenex

2. Integral Development3. TraderTools

Best FX Prime Brokerage


2. Deutsche Bank3. Morgan Stanley

Non-Bank Providers1. FC Stone2. Traiana

3. Prudential Bache

Best Order Management

Bank Providers1. Deutsche Bank

2. Citi3. Barclays Capital

Non-Bank Providers1. Barracuda FX

2. FXall3. TwoFour

Best Market Data Service

Non-Bank Providers1. Thomson Reuters

2. Bloomberg3. GFI Group



Profit & Loss Forex Network ChicagoChicago, September 21-22

Profit & Loss Forex Network Chicago is the FX industryʼs premier event of the year, drawing arecord 550 registered attendees to the Windy City in September 2011. Two days of panel discus-sions featured central bankers, bankers and buy side discussing a wide range of topics includingregulation, derivatives, prime brokerage, clearing, growth markets and the latest technology trends.The accompanying sold out trade show featured more than two-dozen exhibitors showcasing bestof breed technology and services.

MARTIN MALLETT, BANK OF ENGLAND

MATT O’HARA, THOMSON REUTERS; CLIFF LOWRY, STATE STREET EEXCHANGE; JOHNMIESNER, HOTSPOT; JIM KWIATKOWSKI, FXALL; DAN TORRY, ICAP EBS VITOR FELLOWS, GTECH

ANNA FAUSTINI, SG

JULIAN COOK , GFI

DAVID CLARK, WMBAL-R: ANDY COYNE, CITI; TONY DALTON, BAML;GIL MANDELZIS, TRAIANA, NICK DYNE, MARKIT



PANEL: ALL CASHED UP AND NOWHERE TO GO PANEL: THE CORPORATE TREASURER’S ROLE IN MANAGING FX EXPOSURE

PANEL: BUILD YOUR OWN FX EXCHANGE JIM KWIATKOWSKI, FXALL; DAN TORREY, ICAP EBS

PATRICK PHILPOTT, DEALHUB; TERENCE OH, UBS; DEREK SAMMANN, CMETOM ROGERS, THOMSON REUTERS; ANNA DIDIER, ICAP;DEBRA LODGE, HSBC; PAUL CHAPPELL, C-VIEW

PAUL AINSWORTH, UBS; MIKE HARRIS, CAMPBELL & CO; MARK SYKES, BAML; DAVE REID, CITICOLIN LAMBERT, PROFIT & LOSS, PRESENTING HALL OF FAMEAWARD TO BANK OF ENGLAND’S MARTIN MALLETT

Growth Markets 2011 Chile: Santiago, October 17

In addition to Colombia, Profit & Loss extended our FX Growth Markets series to Chile this year,with an inaugural event attended by 100 local market participants in Santiago. Featuring akeynote address by the Central Bank of Chileʼs Director of the Financial Policy Division, KevinCowan, attendees gained valuable insight into both international and local market developments.



GLOBAL ECONOMIC OUTLOOK PANEL KEVIN COWAN, CENTRAL BANK OF CHILE

CRAIG LEVEILLE, CME GROUP BENJAMIN SIERRA, SCOTIA CHILEPHIL HARRIS, 360T

SPEAKING CENTRE: GUILLERMO TAGLE QUIROZ, IM TRUST LINDOMAR DA SILVA, GFI GROUP

A FULL HOUSE AT INAUGURAL PROFIT & LOSS FX GROWTH MARKETS CHILE EVENT



Growth Markets 2011 Brazil: Sao Paulo, October 20

PROFIT & LOSS RETURNED WITH AN INTERNATIONAL DELEGATION TO SAO PAULO TODISCUSS REGIONAL TRADE OPPORTUNITIES BETWEEN NORTH AMERICA AND ASIA,TECHNOLOGICAL ADVANCES AVAILABLE TO LOCAL MARKET PARTICIPANTS, AS WELL ASTHE LEGAL AND REGULATORY CLIMATE IN BRAZIL AND OVERSEAS.

ERNESTO SEMEDO, 360T; MATT O’HARA,THOMSON REUTERS PANEL: GROWTH DRIVERS IN DERIVATIVES

L-R: DAVID CLARK, WMBA; ANNA DIDIER, ICAP EBS; MICHAEL BERNAL, FXALL;ERNESTO SEMEDO, 360T; MATT O’HARA, THOMSON REUTERS MARCELO CARVALHO, BNPP

CARLOS AREIA, PHARE GLOBAL MARKETS CARLOS FELIPE BARROS, AMERICAS TRADING ANNA DIDIER, ICAP EBS

L-R: CARLOS BARROS, AMERICAS TRADING; DAVID ALVAREZ, GFI; CARLOS AREIA, PHARE;GREGORY STREET, THOMSON REUTERS ; DANILO VIVAN, BRASIL INVESTIMENTOS & NEGOCIOS

RICARDO DELLA SANTINA,NORFOLK ADVISORS



Profit & Loss Forex Network CanadaToronto, November 9

Profit & Loss Forex Network Canada rounded off the yearʼs conference circuit in Toronto. Kicking offwith an opening address by debt management specialist Alex Jurshevski, CEO of Recovery Partners.Mr Jurshevski has been a vocal pundit on issues pertaining to the Greek debt restructuring, havingbeen a leading advisor to Iceland during its financial crisis. Profit & Loss also introduced featuredspeaker Felipe Gaviria Lievano, Regulation Deputy Director at Colombia's Autorregulador del Mer-cado de Valores (AMV), to the Toronto audience, providing exclusive insight into the market of one ofthe few countries to receive a credit upgrade, while developed countries suffer downgrades. Theconference, held in association with the Financial Markets Association - Canada, drew 200 attendeesto the conference and accompanying trade exhibition.

SECOND ANNUAL PROFIT & LOSS FOREX NETWORK CANADA HELD IN TORONTOALEX JURSHEVSKI,

RECOVERY PARTNERS

SOREN HAAGENSEN, SG; HAYDEN MELTON, TR;DANIELLE CARAVETTA, CS; UGUR ARSLAN, AIENTECH

L-R: JAMES BERGIN, BARCLAYS; JAVIER PAZ, AITE; RAFAEL QUEZADA, CITI; DAVID FALLER, SUNGARD

MARK SUTER, DIGITAL VEGA; BEN ERNEST-JONES, PROGRESS;CRAIG LEVEILLE, CME; JEFF COOPER, BMO; PAUL MILLWARD, GFI

FELIPE GAVIRIA, AMV FULINDA ROUSE, ICAP EBS

PAUL CAPLIN, CAPLIN SYSTEMS

TAKIS SPIROPOULOS, CIBC

BENJAMIN REITZES, BMO

Where Liquidity Meets Opportunity.

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FX OPTIONS TRADING PLATFORM 2008-2011 PROFIT & LOSS DIGITAL MARKETS AWARDS

RISK MANAGEMENT SYSTEM 2010-2011 PROFIT & LOSS DIGITAL MARKETS AWARDS

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