Big Banks plan new FX trading venue - Pure FX
According to Wall Street Journal the most powerful banks in the currency-trading business, moving to reclaim lost business, are preparing a banks-only dealing system that could shake up the market, several people familiar with the situation said.
The planned venture has the working title of Pure FX and backing from most of the 10 largest banks in global foreign-Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term dealing, whose daily spot volume of $1.5 trillion makes it by far the largest asset class.
The banks are next week expected to start approaching technology firms about building a new dealing platform, two people familiar with the situation said.
It seems the banks will be looking to leave EBS and start their own trading venue hoping to lure hedge funds and algo traders - the highest growing market segment at this point. Last such attempt was in 2007 and was called FXMarketSpace, founded by Reuters and CME, and was shutdown less than two years since inception. I don't believe that Pure FX, if it was to materialize, will somehow impact the retail fx market as retail traders will now be allowed into the interbanking feed for several reasons, one of them is relatively small deal size as opposed to massive interbanking deals. The thing in such venue however is that it will be very useful for high frequency traders and for Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term firms (including retail fx brokers). Additionally, it'll create competition in a market completely controlled by ICAP until now.
According to Wall Street Journal the most powerful banks in the currency-trading business, moving to reclaim lost business, are preparing a banks-only dealing system that could shake up the market, several people familiar with the situation said.
The planned venture has the working title of Pure FX and backing from most of the 10 largest banks in global foreign-Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term dealing, whose daily spot volume of $1.5 trillion makes it by far the largest asset class.
The banks are next week expected to start approaching technology firms about building a new dealing platform, two people familiar with the situation said.
It seems the banks will be looking to leave EBS and start their own trading venue hoping to lure hedge funds and algo traders - the highest growing market segment at this point. Last such attempt was in 2007 and was called FXMarketSpace, founded by Reuters and CME, and was shutdown less than two years since inception. I don't believe that Pure FX, if it was to materialize, will somehow impact the retail fx market as retail traders will now be allowed into the interbanking feed for several reasons, one of them is relatively small deal size as opposed to massive interbanking deals. The thing in such venue however is that it will be very useful for high frequency traders and for Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term firms (including retail fx brokers). Additionally, it'll create competition in a market completely controlled by ICAP until now.