New Spot FX platform ‘traFXPure’ – competition for EBS?

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

More Coverage on traFXPure from Reuters, and great insight from LeapRate , EuroMoneyFXNews and of course from Colin Lambert at Profit&Loss

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.

3 Responses

  1. […] platform comes after recent announcements of traFXPure and the Multi-Bank FX utility […]

  2. […] covered this in previous post here, with summary of other new FX platforms covered […]

  3. […] Clearly, the battle between EBS and ParFX is only just starting, as discussed here. […]

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