A consortium of leading FX banks joins forces to become liquidity providers for a new multibank spot FX price aggregation service, FXSpotStream.
The new service launched today, uses SmartTrade’s technology platform, from an initial co-location site in New York and is supported by liquidity providers including Bank of America Merrill Lynch, Citi, Commerzbank AG, Goldman Sachs, HSBC and JP Morgan Chase.
FXSpotStream was formed last year and is a wholly owned subsidiary of LiquidityMatch. A number of the LiquidityMatch shareholders are liquidity providing banks for FXSpotStream.
Alan Schwarz, CEO (ex COO, ICAP Americas) said:
“FXSpotStream provides banks and clients the ability to communicate bilaterally using a solution that does not interfere with the transaction, is transparent and eliminates the cost of execution. Clients access a single API from co-location sites in New York, London and Tokyo and have the potential to communicate with all liquidity providing banks connected to the FXSpotStream solution.”
Personal View: Sounds to me like the banks are building a ‘utility’, and cutting out the multi-dealer platform middleman fees (will be interesting to see how this affects FXall share price)!
Profit&Loss running with story here: