Bloomberg has announced that Golden Agri-Resources has selected their FXGO foreign exchange platform for their currency hedging and risk management needs. Based in Indonesia, Golden Agri is the second largest palm oil plantation company in the world. According to Golden Agri, the firm will be using FXGO and its network of connected liquidity providers for currency hedging and risk trading for G10, regional, and emerging Asian currencies.
For Bloomberg, corporate users such as Golden Agri represent an important part of their overall FXGO client base. According to Bloomberg, corporate customers compose 20% of the FXGO client base and are one the fastest growing categories of customers.
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Overall, the firm revealed to Finance Magnates that activity on the FXGO platform continues to be strong, with average daily volumes for the past 12 months growing by 54%, with 2015 year to date volumes 34% above last year’s progress. While Bloomberg doesn’t disclose FX volumes traded on FXGO or through their TradeBook brokerage, in 2013 Finance Magnates estimated that ADV on Bloomberg’s platform of FX spot, swaps, options and forward were around $70 billion. Since then, volumes are believed to have grown comfortably above $100 billion, and potentially as high as the $150 to $180 billion range.
Offered through the Bloomberg Terminal, FXGO is available as a commission free trading platform to users. As such, it has gained popularity for both liquidity providers and takers, with over 300 providers connected to the platform. Interestingly, due to the growth of buy-side users, it has spawned a sub-sector of FX technology solutions who provide services to banks to allow them to distribute their liquidity on the platform as well as competing systems such as 360T and Currenex.
In regards to the current news about Golden Agri-Resources, Gopul Shah, Head of Global Treasury and Trade Finance at Golden Agri stated “Bloomberg FXGO enables us to seamlessly trade G10, regional and emerging Asian currencies with best execution and straight-through processing. The efficiency and cost savings gained using Bloomberg as an integrated trading solution allow us to better support the company’s operational and strategic decisions while adopting industry best practices.”