Understanding Passive Currency Overlay

Understanding Passive Currency Overlay

The world of Foreign Exchange continues to evolve and expand rapidly, at least in terms of global daily average turnover[1]. This evolution is fundamentally due to:

  • The structure of the market: continued consolidation among the market players.

  • The composition of the market participants: currency overlay managers and traditional asset managers are joined by hedge funds, high-frequency traders and retail aggregators.

  • The new technologies: new electronic platforms and networks are used as well as new services and technologies such as STP and CLS which have added efficiency to the end-to-end trade flow while limiting the risks.

This is happening in the context of a recent financial crisis (2008) where changes and uncertainty have brought a mixed of good and bad news to investors including the opportunity to have a fresh look at the currency risk management policy: whereas some may opt for a more conservative approach, other investors may try to capture the newly emerged opportunities.

This document might be the very first step towards the challenging process of setting up a sensible currency risk management policy.

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[Video] How will Robo-Advisors reshape Asset Management?

[Video] How will Robo-Advisors reshape Asset Management?

As promised, a nice video for those who missed our last @Initio event about Robo-Advisors at the @Lhoft last month.

  If you want to find out more, don’t miss out our @Initio White Paper covering all aspects of the topic and click to subscribe below.

 Stay tuned to find out more about our next events, because Expertise matters.

Thanks to all participants and to @Kotao Production for this smooth coverage!

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ICOs: the wild (wild) west?

ICOs: the wild (wild) west?

Bitcoin’s sharp rise in the past year has been accompanied by a surge of Initial Coin Offerings (ICO) popularity —a process by which tokens or digital currencies are issued in return for funding. These unregulated and controversial rounds of funding have started to grab the attention of the media, investors—and regulators—alike.

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