Tradition, the Interdealer Broker (IDB), is launching a new interbank spot FX platform called traFXPure.
Supported by top FX banks (including: Barclays, BNP, Deutsche, RBC and UBS), the platform is aimed at creating a ‘fairer’ venue where participants can manage risk, without being ‘picked off’ by the HFT firms.
First mooted almost two years ago as PureFX, traFXPure will be seen as a response to the failure by EBS to act on concerns of major banks regarding the degree of HFT access within EBS (in 2010 HFT account for 45% of vols compared to only 2% in 2004). These concerns have resulted in a slide in EBS vols, culminating in the recent replacement of EBS CEO David Rutter, by Gil Mandelzis.
(ICAP EBS monthly FX vols – chart from LeapRate)
traFXPure will cover:
- Products:Spot FX in CLS currencies
- Access: Any participant who can settle via CLS
- Cost and convenience: Standard FIX API. Low cost and equivalent market data distributed to the entire market
- Fairness: Execution logic and uniform and transparent pricing ensures fair execution for all
- Transparency: Counterparties fully disclosed post-trade
- Technology: Based on Tradition’s Trad-X Swaps Platform
Whilst earlier this month, we covered the new multibank FX ‘utility’ consortium FXSpotStream, led by a different group of top banks: BAML, Citi, Commerzbank, Goldman Sachs, HSBC and JP Morgan.