FXSpotStream, a rapidly growing liquidity aggregation firm, has expanded its product offering by including FX Forwards and Swaps for the first time since being founded in 2011. The company specializes in aggregating liquidity from several providers and packaging them as a single feed or pool to brokers around the world, from their three major hubs – New York, London and Tokyo.
In a company statement, FXSpotStream CEO, Alan Schwarz, was quoted as saying, “The addition of FX Forwards and Swaps, together with RFS [request-for-size] functionality is a natural extension to the existing Spot FX and Precious Metals price streaming offering.”
All about the Numbers
A subsidiary of LiquidityMatch LLC, FXSpotStream is trying to actively expand its market presence having also announced strong month-on-month and year-on-year trading volume metrics.
Performance metrics at FXSpotStream have shown demand for its liquidity, as since its inception in 2011, posting double-digit growth figures in almost all metrics, suggesting a successful business model and strong client growth. The company reported August 2014 Average Daily Volume (ADV) as being 28% higher compared to June (the company’s previous all-time record) and 33% higher compared to last month. Year-on-year, the company has seen this August’s ADV rise by 274% and total client numbers have increased 88%.
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“The utility model underlying the business and the alignment of our cost structure with the need by our liquidity providers and clients to reduce the significant fees incurred in transacting with each other is meeting its objectives,” said Mr. Schwarz.
Hitting a Nerve
The company’s business model is centered around not charging brokerage fees to clients or liquidity providers (banks) and has been received with warm affection by FXSpotStream’s liquidity providers, such as Bank of America and Commerzbank.
“The no-brokerage-fee model combined with a transparent and fully disclosed trading environment works well for us and our clients.” said Liam Hudson, Bank of America Merrill Lynch’s Managing Director and Global Head of FX Ecommerce Trading.
FXSpotStream currently works with multiple liquidity providers from the interbank market, including Bank of America (Merrill Lynch), BNP Paribas, Citigroup, Commerzbank AG, Goldman Sachs, HSBC, J.P. Morgan, Morgan Stanley and UBS.
The latest addition of Forwards and Swaps adds product variety and is expected to help the platform appeal to a wider audience allowing the firm to further extend its market reach and sustain its strong growth to date.