SGX goes live with LSE’s post-trade technology
This new development will not only enable our customers to access additional liquidity, but it will also connect them to a leading clearing house ahead of increased capital regulations. Jean-Philippe Male: We see the FX and the futures markets getting very close to one another and so we really wanted to partner with a large player in the futures market to help develop our platform purely as a technology offering that will bring liquidity coming from the futures market together with our existing FX offering.
BidFX is very successful in Asia, a very large portion of our revenue comes from Asia and hence the partnership with the largest FX futures exchange in the region came naturally. Can you give us any more details about where specifically this funding will go? We are basically at a point where the product is ready, it is accepted by the market and we have more customer implementation pipeline than we can handle.
JPM: Capital constraints is clearly one driver. I think that as regulations increase capital requirements will make it more difficult to fund this kind of OTC activity and some flow will naturally move into futures. JPM: Absolutely, but I think that it goes both ways. And by the way, this is true not just in FX but also in fixed income. And then from our side, we have clients asking us to become bigger and many of the competitors that we face on deals are backed by very large financial groups.
BidFX was spun out from Trading Screen, which has a background in equities. BidFX, a specialised trading platform for global FX markets, plans to utilise the funds to further grow its reach and offering among institutional investors. BidFX was spun off as a division of TradingScreen TS , a provider of a multi-asset execution and order management system, in January It offers a cloud-based, front-end trading platform to help hedge funds, traditional asset managers and regional banks trade, improve access to liquidity, generate alpha and simplify workflows.
Its liquidity aggregation platform supports FX spot, swaps and forwards for G10 and Asian currencies. With this investment, we have an opportunity to offer our suite of Asian FX futures alongside the over-the-counter OTC products offered on the BidFX platform, bringing together both pools of liquidity. We are confident that over time, they will establish themselves as a global e-FX platform and complement our fast-growing FX business.
Singapore, as the biggest FX centre in Asia and the third-largest globally, continues to attract strong FX trading activity driven by the growth and volatility in G10 and Asian currencies.
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BidFX, a TradingScreen company, is the leading cloud-based provider of electronic foreign exchange trading solutions for the global financial marketplace. BidFX clients have access to broker-neutral order and execution management services, which delivers them customized liquidity in all Foreign Exchange products from their banks and other providers. Targeted to be launched on 27 August , SGX FlexC FX Futures — developed in consultation with market participants — enable bilateral trades that are privately negotiated with tailored expiration dates to be registered and cleared like a standard SGX FX futures contract.
We have worked with market participants to bring the efficiencies of futures market infrastructure into Asian FX. With FX markets moving towards central clearing, this new feature will offer an effective way of enhancing operational efficiencies, lowering costs and counterparty credit risk, and keeping bilateral trading relationships at the same time. Today retrieved from NLB. Retrieved 2 October The Straits Times.
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