BNY takes stake in FastMatch FX ECN

BNY Mellon has announced they are taking an ownership interest in FastMatch, the FX ECN launched last year, based on Credit Suisse’s Crossfinder technology platform.

Giving our traders and customers access to FastMatch’s ECN capabilities will provide additional alternatives to source liquidity by accessing larger pools of buy/sell opportunity, as well as faster execution,” said Craig Messinger , executive vice president and global head of trading and risk management for BNY Mellon Global Markets.

We previously covered the launch of FastMatch here.

I may have lost count of how many new FX venues have launched in the past year. By July last year I counted five!

It goes without saying that each platform is certain their offering will succeed, and gain traction in their chosen client segment, based on a combination of rules of engagement, brokerage model and execution technology.

BUT, there is only so much FX business to be carved up, and platforms don’t have long to prove they can generate ‘critical core liquidity’, that will attract additional participants.

So, it will be interesting to see how volumes on all these platforms develop, and how long the pump priming bank/trading firm liquidity providers, who in most cases are also the shareholders support the ventures.

Table above shows new FX platforms from last July.

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