R5FX, a foreign exchange (FX) marketplace specializing in emerging markets (EM) currencies, has just announced the implementation of its beta testing phase, culminating in the completion of its first Brazil, Russia, India and China (BRIC) trades, according to an R5FX statement.
The FinTech start-up has already targeted a Q3-Q4 2015 launch date and is aiming to foment interest in trading EM currencies. This is reflective in an industry-wide push to migrate from voice trading to a more transparent and streamlined screen-based market approach, which draws on deeper liquidity.
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The fundamental aim of R5FX is also to fortify market growth in EM currencies, namely with respect to traders and prospective market participants – indeed, the spot FX market has undergone a steadfast growth, notwithstanding in parallel to the adoption of e-commerce.
R5FX operates a central credit model, allowing for the provision of better credit efficiency and the reduction of the number of credit lines required to trade the growing volumes in emerging market currencies – this also was a point of emphasis with respect to the upcoming MiFID regulation imposed on leverage ratios.
According to Jon Vollemaere, CEO of R5FX, in a recent statement on the test phase, “R5FX continues to make significant progress, and I am happy to announce that we have successfully completed a number of BRIC beta test trades. Our New World Interbank marketplace is the result of over 400 product requirement meetings globally, which have driven our whole proposition, from the technology and platform design, to market structure innovation and new trading models.”