360T, a provider of FX trading solutions, has enabled mid-liquidity streaming via APIs on its Swap User Network (SUN). The initial trade was executed by Deutsche Bank and ING, marking a significant development for the FX Swaps market.

360T SUN is currently the sole platform providing continuous mid-price streaming for FX Swap instruments. According to the company, the innovation caters to the growing demand for clients seeking access to FX Swaps.

Shuo Wu, the Global Head of Forward e-trading at Deutsche Bank, said: "Establishing a marketplace that facilitates risk offset at the mid-market level signifies the next phase in the advancement of FX swaps trading. This development finally delivers for the industry opportunities that have long been present in smaller markets and empowers us to better cater to the rising client demand for access to these products."

360T Enhances FX Swaps

360T has expressed confidence that this milestone will fundamentally change how banks approach the trading of FX Swaps. The company noted that it paves the way for auto-hedging, aggregation, and algorithmic execution. 360T SUN aims to empower bank partners to enhance their trading capabilities to enhance growth in the FX Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term market.

360 T's innovation arrived when the forex trading landscape was experiencing mixed performance, reflecting the influence of market conditions and trading dynamics across different platforms. For instance, Cboe FX witnessed a blend of positive and negative indicators in August.

The US-based platform reported a total trading volume of $944 billion, a notable increase from the previous month's figure of $922 billion. However, the average daily volume (ADV) for spot FX faced a decline, dropping from nearly $44 billion to $41 billion. This dip can be attributed to August having more trading days (23 days) compared to July (21 days).

FX Market Experiences Declining Trading Volume

Similarly, 360T experienced a significant downturn in August as its total trading volume for the month amounted to $508 billion, marking a substantial decrease from July's figure of $616 billion. On a different note, Euronext FX saw its monthly volumes rise to $518 billion, surpassing the amount of $492 billion reported in the previous month.

According to a report by Finance Magnates, the decline in market volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term had a noticeable impact on forex trading operations, resulting in narrower profit margins for financial institutions. Research from BCG Expand suggests that income from foreign exchange activities among the top 100 banks declined 15% in the first half of 2023.

Similarly, centralized trading exchanges (CEXs) experienced a decrease in aggregate trading volumes for spot derivatives, falling 12% to $236 trillion in July. This trend can potentially hinder the economic rebound following the disruptions caused by the Covid-19 crisis.