Edgewater Markets, the NFA-registered non-bank FX liquidity provider, has expanded the reach of its dedicated Latin American currency and NDF trading platform, LatamFX.Pro. The move also reflects Edewater’s enhancement of its LATAM distribution network to an expanding global client base.
The NY-based based company now allows European clients to leverage its foreign exchange offering that covers a wide range of Latin American non-deliverable currencies. The development gives Edewater’s FX community in other regions more access to emerging markets, while bringing greater efficiency and reduced operational complexity.
The electronic FX liquidity and distribution specialist says that the step helps meet the needs of its corporate and institutional clients, including local banks, pension funds, hedge funds, brokers and end users, for hedging and execution of real Latin American FX and non-deliverable forwards business.
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In addition, users benefit from improved counterparty risk management and increased capital efficiency, with liquidity and access restricted to end users, which increases reliability.
Expanding influence in Latin America
NDFs comprise a small portion of overall FX turnover but the product has experienced impressive growth in recent years as it provides a way to trade spot FX in restricted markets where currencies are not deliverable. NDFs are distinct from other currency products because they do not have central exchange or delivery. Rather, the trades are cash settled based on the difference between the exchange rate at the time of the trade and the exchange rate at maturity.
Edgewater Markets recently expanded its influence in Latin America, launching a new office in Santiago, Chile, to provide bespoke trading services and improve access to liquidity and credit.
Commenting on the news, Robert Sanchez, Head of Mexico, said: “Our Latin America franchise first developed the product to use locally, and due to its success in that region and the U.S., word has spread to our European clients and users with high demand for currencies like the Mexican Peso and LATAM NDFs. As a result, we decided to make the Latami-A.Pro platform accessible to other regions. and depth available to customers giving our liquidity providers a more unique pool of both firm liquidity and truly unique regional market making rates.”