EBS BrokerTec, ICAP’s market-leading electronic foreign exchange (FX) and fixed income business, has added two new liquidity providers (LPs) to its EBS Direct platform, according to an ICAP statement.
As of today, EBS Direct platform will see the induction of its first Russian LP, Metallinvestbank, as well as its first South African LP, Standard Bank. The decision to enlist each LP underscores a variety of developments, namely the impetus behind Metallinvestbank, which rose from an acute need for local Russian banks to connect into EBS given the illiquid fallout of the Russian ruble.
Alternatively, Standard Bank is not only South Africa’s largest dealing bank for the South African rand, but it is the country’s paramount dealer, consequently boasting the best rates. Subsequently, the addition of both Metallinvestbank and Standard Bank now brings EBS BrokerTec’s already robust LP count to 24 entities.
Furthermore, as a result of being LPs on EBS Direct, both Metallinvestbank and Standard Bank are now able to offer their respective customers access to a leading liquidity pool in both major and emerging market currencies, which includes the ruble and rand, whereby increasing liquidity and offering more improved pricing, as well as execution certainty.
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According to Sergey Romanchuk, Head of FX&MM at Metallinvestbank, in a recent statement on the induction of the new LPs, “As the first local Russian LP for EBS Direct we will be able to offer our counterparties enhanced liquidity in the ruble and other key currencies. Access to EBS Direct’s global distribution network will allow us to support our customers with customised liquidity at a time when reliable pricing and execution is more important than ever.”
“As a leading market maker in the South African rand, it is vital for us to be present where our customers choose to transact, and EBS Direct is a significant avenue which is continuing to grow in popularity. Based in Johannesburg, our 24 hour trading desk is well positioned to provide customers with access to the best liquidity and our regional expertise,” added Tim Hutchinson, Head of eFX, Global Markets at Standard Bank, in an accompanying statement.
Jeff Ward, Global Head of EBS Direct, said: “The addition of Metallinvestbank and Standard Bank help to expand and reinforce EBS Direct’s position in emerging market currencies and we look forward to working with them to provide greater pricing options for our customers. EBS Direct has helped to shift the playing field for EBS BrokerTec and allowed the market to see the business as a strong pricing provider beyond EBS BrokerTec’s traditional G3 currencies.”
EBS Direct presently boasts a comprehensive offering of 86 currency pairs, including spot FX, Non-deliverable-forwards (NDFs), and precious metals to worldwide markets.
EBS recently reported its electronic FX volumes for the month ending June 2015, which showed a healthy growth over May’s figures. For the month ending June 2015 however, volumes managed to swell to $100.8 billion daily, good for a 5.1% growth MoM from $95.9 billion daily in May 2015. Across a yearly timeframe however, this performance was even more robust, notching a 26.6% YoY from $79.6 billion in June 2014.