{"id":24460,"date":"2014-02-18T19:03:15","date_gmt":"2014-02-19T00:03:15","guid":{"rendered":"http:\/\/prefblog.com\/?p=24460"},"modified":"2014-02-18T19:03:15","modified_gmt":"2014-02-19T00:03:15","slug":"february-18-2014","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=24460","title":{"rendered":"February 18, 2014"},"content":{"rendered":"

I’m taking up a collection to save the endangered FX trader<\/a>:<\/p>\n

A widening probe of the foreign-exchange market is roiling an industry already under pressure to reduce costs as computer platforms displace human traders.<\/p>\n

Electronic dealing, which accounted for 66 percent of all currency transactions in 2013 and 20 percent in 2001, will increase to 76 percent within five years, according to Aite Group LLC, a Boston-based consulting firm that reviewed Bank for International Settlements data. About 81 percent of spot trading — the buying and selling of currency for immediate delivery — will be electronic by 2018, Aite said.
…<\/b>
The push toward electronic trading probably will lower costs for customers and boost transparency of pricing, according to Cormac Leech, an analyst at Liberum Capital Ltd. in London. It may also squeeze margins for banks, he said.<\/p>\n

Human traders have maintained their role in the foreign-exchange market while disappearing in areas such as equities because most trading takes place away from exchanges. That means clients don\u2019t have a central repository showing the flow of completed orders, forcing them to piece together information about the direction of rates from traders and salesmen with knowledge of other clients\u2019 orders. People were also needed because early computerized trading systems weren\u2019t reliable and couldn\u2019t handle larger transactions, according to dealers.<\/p><\/blockquote>\n

If Cormac Leech in the third paragraph is right, it will be the first time transparency has helped customers as a whole in a financial market. In all other markets, such a transition results in dealers holding less inventory and spreads narrowing but becoming much more brittle – more intra-day volatility. We will see!<\/p>\n

It was a positive day for the Canadian preferred share market, with PerpetualDiscounts up 10bp, FixedResets gaining 7bp and DeemedRetractibles winning 11bp. Volatility was minimal. Volume was average.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
HIMIPref™ Preferred Indices
These values reflect the December 2008 revision of the HIMIPref™ Indices<\/strong>
Values are provisional and are finalized monthly<\/td>\n<\/tr>\n
Index<\/td>\nMean
Current
Yield
(at bid)<\/td>\n		Median
YTW<\/td>\n		Median
Average
Trading
Value<\/td>\n		Median
Mod Dur
(YTW)<\/td>\n		Issues<\/td>\nDay’s Perf.<\/td>\nIndex Value<\/td>\n<\/tr>\n
Ratchet<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n0.2001 %<\/td>\n2,415.8<\/td>\n<\/tr>\n
FixedFloater<\/td>\n4.76 %<\/td>\n4.35 %<\/td>\n30,960<\/td>\n17.72<\/td>\n1<\/td>\n-0.1502 %<\/td>\n3,563.8<\/td>\n<\/tr>\n
Floater<\/td>\n3.00 %<\/td>\n3.11 %<\/td>\n53,570<\/td>\n19.40<\/td>\n4<\/td>\n0.2001 %<\/td>\n2,608.4<\/td>\n<\/tr>\n
OpRet<\/td>\n4.61 %<\/td>\n-0.30 %<\/td>\n67,536<\/td>\n0.11<\/td>\n3<\/td>\n-0.0256 %<\/td>\n2,687.8<\/td>\n<\/tr>\n
SplitShare<\/td>\n4.87 %<\/td>\n5.01 %<\/td>\n59,885<\/td>\n4.32<\/td>\n5<\/td>\n0.0241 %<\/td>\n3,012.1<\/td>\n<\/tr>\n
Interest-Bearing<\/td>\n0.00 %<\/td>\n0.00 %<\/td>\n0<\/td>\n0.00<\/td>\n0<\/td>\n-0.0256 %<\/td>\n2,457.7<\/td>\n<\/tr>\n
Perpetual-Premium<\/td>\n5.67 %<\/td>\n1.45 %<\/td>\n96,759<\/td>\n0.08<\/td>\n12<\/td>\n0.0364 %<\/td>\n2,335.4<\/td>\n<\/tr>\n
Perpetual-Discount<\/td>\n5.55 %<\/td>\n5.64 %<\/td>\n151,194<\/td>\n14.40<\/td>\n26<\/td>\n0.0951 %<\/td>\n2,389.4<\/td>\n<\/tr>\n
FixedReset<\/td>\n4.85 %<\/td>\n3.71 %<\/td>\n211,849<\/td>\n6.49<\/td>\n80<\/td>\n0.0699 %<\/td>\n2,490.9<\/td>\n<\/tr>\n
Deemed-Retractible<\/td>\n5.11 %<\/td>\n4.08 %<\/td>\n161,436<\/td>\n1.69<\/td>\n42<\/td>\n0.1131 %<\/td>\n2,426.8<\/td>\n<\/tr>\n
FloatingReset<\/td>\n2.65 %<\/td>\n2.68 %<\/td>\n162,170<\/td>\n7.10<\/td>\n6<\/td>\n0.1477 %<\/td>\n2,438.4<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n
Performance Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nChange<\/td>\nNotes<\/td>\n<\/tr>\n
PWF.PR.A<\/td>\nFloater<\/td>\n1.15 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-18
\nMaturity Price : 19.29
\nEvaluated at bid price : 19.29
\nBid-YTW : 2.73 %<\/td>\n<\/tr>\n
MFC.PR.F<\/td>\nFixedReset<\/td>\n1.25 %<\/td>\nYTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 22.70
\nBid-YTW : 4.51 %<\/td>\n<\/tr>\n
BAM.PR.X<\/td>\nFixedReset<\/td>\n1.34 %<\/td>\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-18
\nMaturity Price : 21.19
\nEvaluated at bid price : 21.19
\nBid-YTW : 4.38 %<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n
Volume Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nShares
Traded<\/td>\n		Notes<\/td>\n<\/tr>\n
RY.PR.Z<\/td>\nFixedReset<\/td>\n289,384<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-18
\nMaturity Price : 23.23
\nEvaluated at bid price : 25.25
\nBid-YTW : 3.74 %<\/td>\n<\/tr>\n
MFC.PR.I<\/td>\nFixedReset<\/td>\n68,150<\/td>\nScotia crossed 50,000 at 26.05.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2017-09-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 26.00
\nBid-YTW : 3.44 %<\/td>\n<\/tr>\n
NA.PR.S<\/td>\nFixedReset<\/td>\n65,946<\/td>\nRecent new issue<\/a>.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-18
\nMaturity Price : 23.19
\nEvaluated at bid price : 25.12
\nBid-YTW : 3.93 %<\/td>\n<\/tr>\n
MFC.PR.E<\/td>\nFixedReset<\/td>\n64,875<\/td>\nTD crossed 50,000 at 25.59.
\nYTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2014-09-19
\nMaturity Price : 25.00
\nEvaluated at bid price : 25.59
\nBid-YTW : 3.15 %<\/td>\n<\/tr>\n
ENB.PR.P<\/td>\nFixedReset<\/td>\n57,345<\/td>\nNesbitt crossed 47,300 at 24.10.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-18
\nMaturity Price : 22.79
\nEvaluated at bid price : 24.04
\nBid-YTW : 4.20 %<\/td>\n<\/tr>\n
CU.PR.E<\/td>\nPerpetual-Discount<\/td>\n50,640<\/td>\nScotia crossed 42,600 at 22.90.
\nYTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-18
\nMaturity Price : 22.52
\nEvaluated at bid price : 22.90
\nBid-YTW : 5.35 %<\/td>\n<\/tr>\n
There were 36 other index-included issues trading in excess of 10,000 shares.<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n
Wide Spread Highlights<\/strong><\/td>\n<\/tr>\n
Issue<\/td>\nIndex<\/td>\nQuote Data and Yield Notes<\/td>\n<\/tr>\n
BAM.PR.N<\/td>\nPerpetual-Discount<\/td>\nQuote: 19.90 – 20.10
\nSpot Rate : 0.2000
\nAverage : 0.1218<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-18
\nMaturity Price : 19.90
\nEvaluated at bid price : 19.90
\nBid-YTW : 6.07 %<\/td>\n<\/tr>\n

PWF.PR.R<\/td>\nPerpetual-Discount<\/td>\nQuote: 24.55 – 24.75
\nSpot Rate : 0.2000
\nAverage : 0.1250<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-18
\nMaturity Price : 24.14
\nEvaluated at bid price : 24.55
\nBid-YTW : 5.64 %<\/td>\n<\/tr>\n

BAM.PR.R<\/td>\nFixedReset<\/td>\nQuote: 25.02 – 25.24
\nSpot Rate : 0.2200
\nAverage : 0.1579<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-18
\nMaturity Price : 23.51
\nEvaluated at bid price : 25.02
\nBid-YTW : 4.08 %<\/td>\n<\/tr>\n

SLF.PR.D<\/td>\nDeemed-Retractible<\/td>\nQuote: 21.10 – 21.33
\nSpot Rate : 0.2300
\nAverage : 0.1704<\/p>\n

YTW SCENARIO
\nMaturity Type : Hard Maturity
\nMaturity Date\t: 2025-01-31
\nMaturity Price : 25.00
\nEvaluated at bid price : 21.10
\nBid-YTW : 6.59 %<\/td>\n<\/tr>\n

CIU.PR.C<\/td>\nFixedReset<\/td>\nQuote: 20.10 – 20.50
\nSpot Rate : 0.4000
\nAverage : 0.3471<\/p>\n

YTW SCENARIO
\nMaturity Type : Limit Maturity
\nMaturity Date\t: 2044-02-18
\nMaturity Price : 20.10
\nEvaluated at bid price : 20.10
\nBid-YTW : 3.87 %<\/td>\n<\/tr>\n

GWO.PR.M<\/td>\nDeemed-Retractible<\/td>\nQuote: 25.69 – 25.87
\nSpot Rate : 0.1800
\nAverage : 0.1309<\/p>\n

YTW SCENARIO
\nMaturity Type : Call
\nMaturity Date\t: 2018-03-31
\nMaturity Price : 25.25
\nEvaluated at bid price : 25.69
\nBid-YTW : 5.51 %<\/td>\n<\/tr>\n<\/table>\n","protected":false},"excerpt":{"rendered":"

I’m taking up a collection to save the endangered FX trader: A widening probe of the foreign-exchange market is roiling an industry already under pressure to reduce costs as computer platforms displace human traders. Electronic …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-24460","post","type-post","status-publish","format-standard","hentry","category-market-action"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/24460","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24460"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/24460\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24460"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24460"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24460"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}