Citadel Executive Chairs Association of Currency TradersJohn Detrixhe
Some of the world’s biggest trading firms and marketplaces have formed a trade group to promote the $5.3-trillion-a-day foreign-exchange industry, picking a Citadel LLC executive as their chairman.
The Foreign Exchange Professionals Association began life today with Adam Cooper, the senior managing director and chief legal officer of Citadel, as its first elected chairman, the Washington-based group said in a statement. The initial members include the California Public Employees’ Retirement System, derivatives exchange CME Group Inc., LMAX Exchange, automated-trading firm Virtu Financial Inc., and London Stock Exchange Group Plc’s LCH.Clearnet Group Ltd.
“This is a watershed moment for FX as we redefine who we are as an industry and where we’re going,” Derek Sammann, a senior managing director at CME Group and the vice chairman of FXPA, said in the statement.
The currency market is under scrutiny amid investigations into whether traders at some of the world’s largest banks sought to manipulate the WM/Reuters rates in their favor by pushing through trades before and during the 60-second windows when the benchmarks are set, known as the fix. Regulators are examining whether bank traders communicated with dealers at other firms and timed trades to influence benchmarks and maximize profits.
Everyone who makes money from trading, including Wall Street banks and electronic platforms, suffered from low volatility that reduced betting on currencies earlier this year.
Foreign-exchange volatility has since rebounded to its highest level in five months on a closing basis. JPMorgan Chase & Co.’s Global FX Volatility Index reached 7.7 percent today. It had fallen to as little as 5.3 percent in July.