FX Powerhouse Reshuffles as It Looks to Weather the Institutional FX Storm

Leading FX trading venue, EBS, looks to address challenges in the FX trading landscape as it reports on a number of key personnel changes, two senior people have left the firm and two others have been promoted.

The tension led currency derivatives trading environment, continues to test the firm during hostile periods. Established dealing provider in the foreign exchange markets, EBS, has reported that there have been a number of management changes at the firm. The move comes during a prolonged period of difficulties for the industry at large – this is coupled with the news of two key departures at managerial level.

In an after hours (UK market) press statement, EBS reported that Viral Tolat and Darryl Hooker were amending their roles at the venue. The news follows earlier reports of co-Head of EBS Market, Nicola Hunter, calling it quits. This was followed by reports of John Schoen, also a joint co-Head of EBS Market, leaving the firm. EBS confirmed the departure of both individuals in the press release.

Under the new appointments, the roles of the two experienced gentlemen are Mr. Hooker as Head of EBS Market and Viral Tolat Global Head of Product for EBS. Both individuals will report to Gil Mandelzis the CEO of EBS.

Mr. Hooker gets a double treat this year, the long serving EBS employee of 15 years, was earlier promoted to Head of Strategic Currency Initiatives in February 2014. In addition, the emerging market focused professional was elected into the firm’s Executive Committee.

EBS, like its peers in the FX derivatives space, has seen a harsh drop in trading volumes, the interbank trading portal was riding high in 2008 during a period of record activity where the firm saw average daily trading volumes cross $270 billion. However, the plight at the top has seen a dip in activity, EBS has been directly impacted by the slowdown in currency trading with the firm reporting dismal figures, the average daily trading volumes (ADV) have dropped significantly. In April this year, the firm reported that there was $68.5 billion in ADV, a 47% slump from $128 billion that was traded a year earlier.

The firm has been on the receiving end of low volatility in global financial markets, thus pushing trading volumes below the formidable $100 billion mark, a psychological level for industry participants.

EBS Extends

Mr. Tolat joined EBS in January 2013 from Integral Development, where he was one of the co-founders. His appointment at EBS as Chief Technology Officer highlighted the firm’s commitment to diversifying its offering and ensuring that it was focused and open to new technological changes in the sector. The firm also reported on the deployment of its disclosed trading product, EBS Direct.

The firm has stated that it plans to roll out a number of initiatives, which will be reported later this year. In his new role, Mr. Tolat will be responsible for the expansion, development and maintenance of a fully integrated product suite. Mr. Tolat will be working closely with the business lines on EBS's existing products, these include, EBS Market, EBS Direct and EBS Liquidity Optimization.

Commenting on the appointment of Viral Tolat as Global Head of Product, CEO Gil Mandelzis added: "Over the past two years, EBS has transformed from a single product to a multi-product company. We are live today with EBS Market, EBS Direct and EBS Liquidity Optimization, with new products and initiatives in the pipeline that will bring added liquidity to our customers. This requires us to think differently about product discipline, infrastructure, processes and technology.

Viral's unique ability to work effectively with business and technology people, coupled with his vision and leadership, will assist EBS in developing strong product discipline whilst maximizing product innovation." In its QIR2 report, Forex Magnates looked at EBS Direct during a Q&A with Jeff Ward.