Nasdaq prepares to launch own FX platform


Exchanges can’t seem to get enough of FX!

Following the recent spate of exchanges buying FX platforms (Deutsche Boerse buying 360T, BATS Global Trading buying Hotspot, and talk of ICE buying FastMatch), we now hear Nasdaq is readying the launch of their new FX platform.

NasdaqSo, what’s the attraction?

Well, for one thing size, at $5.3tn/day, it’s by far the largest globally traded market. It’s predominantly a bilaterally traded OTC market, highly liquid and although decentralized and fragmented into multiple liquidity pools, is nonetheless very efficient and increasingly electronically executed.

The size and liquid nature of the market play to the scale and efficiency of exchange infrastructure.

But, this is about more than size. Continue reading

FX Platforms: July 15 volumes down ranging from -5.5% to -26% for major platforms, as summer doldrums take hold.


The summer slowdown in FX platforms volumes has certainly kicked in, with all platforms showing falls in Jul15.

Among the Top Tier platforms, falls ranging from Reuters Spot with $101bn in July the fourth consecutive monthly fall in volumes (lowest since Jul 14), down -6.5% from the $108bn in June, EBS at $82.1bn in July (lowest since Jun 14), down a far larger -18.6% from the $101bn in June and CME Futures (now included in my analysis) with $91.6bn in July (lowest since Aug 14), down a massive -26% from the $123bn in June.

However, all the Top Tier platforms still show year on year gains, ranging from Reuters +2.3% to EBS up +16.3% and CME up a huge +25.7% compared to Jul 14.

Whilst among the second tier platforms, Continue reading

HotSpot FX to offer free trading till year end, whilst ADV hit 2.5 yr low


BATS Global Markets, who bought HotSpot FX earlier this year, has today announced plans to offer free FX trading till the end of the year once their new European matching engine when it goes live next month.

BATS has a reputation for driving low-cost execution, and this move is part of their initiative to drive down the costs of execution as the look to gain market share.

According to Chris Concannon, CEO of BATS: Continue reading

EBS and FXall looking to service Corporate Treasurers – so where does that leave bank SDPs?


The two main FX platform providers, ICAP’s EBS BrokerTec and ThomsonReuters have both announced new multi-dealer offerings to better service corporate treasurers.

EBS BrokertecEBS BrokerTec has announced they are integrating ICAP’s My Treasury, their fully disclosed relationship based multi-product, multi-bank, multi-fund, multi-currency solution for corporate treasurers into the EBS platform. The new offering will be called EBS Treasury, and will be available later this year.

EBS Treasury will offer: FX spot, FWD, Swaps, with FX pricing from EBS Direct. Trading will be provided by Streamed RFQ (request for stream), which is a new addition to EBS Direct’s execution functionality. The streamed RFQ will allow banks to stream tailored prices to corporates. EBS Treasury will improve efficiency for corporates that currently source FX liquidity and money market products from multiple providers. EBS Treasury will be designed to integrate seamlessly into existing treasury management systems.

Justin Meadows, CEO of MyTreasury,  said: Continue reading

Weekly Summary: Most viewed posts from past week


Here is a summary of the most viewed posts from last week.

  • New management team at merged EBS BrokerTec
    ICAP announced they were merging their two leading trading platform business divisions EBS (FX) and BrokerTec (Rates) into a single operation called EBS Brokertec Markets. Today the firm announced a new executive management team to drive the combined business forward

New management team at merged EBS BrokerTec


Back in Dec 14, ICAP announced they were merging their two leading trading platform business divisions EBS (FX) and BrokerTec (Rates) into a single operation called EBS Brokertec Markets. Today the firm announced a new executive management team to drive the combined business forward.

According to the company, this will allow the business to leverage key functions across the division, including combined product, technology and sales groups. As a result, the central limit order book (CLOB) businesses of EBS Market and BrokerTec have been combined into a single business division now referred to as EBS BrokerTec Markets. In addition, the BrokerTec CLOB business will now be referred to as BrokerTec Market.

EBS BrokerTec Markets will be led jointly by Dan Cleaves and Darryl Hooker as Co-Heads. Dan most recently served as Continue reading

Central Bank FX Survey data: What’s happening to eFX ratios? Comparing London and NY


In my previous post, I looked at the Bank of England (BofE) FX semi-annual FX survey data.

In this post, I want to look at some of the interesting changes in eFX ratios – the proportion of total FX that is traded electronically, that is the sum of single+Multi-dealer+ECN as a percentage of total volume. We will look at London and NY, and compare and contrast overall eFX ratios, and eFX ratios by product and by client segment. Continue reading

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