EBS Warns Rogue High Speed Traders with New Dealing Rules

EBS, ICAP’s market leading electronic FX platform, today announces that it has published new Dealing Rules for its customers and is relaunching the EBS brand.

The new EBS Dealing Rules, part of a wide-ranging review of the business, have been developed following extensive consultation with the entire EBS community.

Over a three-month period EBS worked continuously with more than 30 institutions representing both the sell-side and the Buy-Side Buy-Side The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim Read this Term before circulating a draft and soliciting feedback from its entire customer base. Following further input and discussion with the entire community, EBS is now publishing the final version of the Dealing Rules.

The Dealing Rules is an extensive document which now includes a new Ai policy and guidelines section, combines the EBS Prime rules, Spot rules, NDF rules and Counterparty Support Obligations and includes enhancements such as increased quote fill and hit fill minimum targets and an updated ’out-of-region’ quoting policy.

The rules apply equally to all EBS market participants and are focused on incentivising Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term enhancing behaviours while eliminating behaviour that could be considered disruptive.

Going forward EBS will review the dealing rules at least once a year with the EBS community.

Updating the Dealing Rules is one element of EBS’s overall approach and is the first in a series of planned enhancements which are being introduced to the system. New surveillance and monitoring systems; systemic controls and new initiatives being developed in close collaboration with EBS customers will be announced in the coming months.

Gil Mandelzis, CEO of EBS, commented:

"EBS's global network and deep liquidity are very important to our clients. As such, we have encountered great passion and extensive collaboration from both banks and buy-side firms in updating the Dealing Rules and strengthening the overall clarity and robustness of EBS. We are grateful for all the support and enthusiasm and we look forward to making more announcements about our progress in the coming weeks, consistent with our commitment to being the most extensive pool of genuine, executable liquidity to all market participants globally."