IPC, a provider of communications and networking solutions for the broader financial markets community, has collaborated with institutional foreign exchange (FX) venue, Hotspot, to help garner access to outright deliverable forwards via IPC’s FX Hub, according to an IPC statement.
Hotspot is owned and operated by Bats Global Markets – the overall group is one of the largest exchange operators in the US and Europe and is a key player in the exchange-traded-funds (ETFs), FX, and equities space. Its partnership with IPC helps market participants gain more reliable and secure access to Hotspot’s marketplace, which will emphasize outright deliverable forwards.
Currently, IPC FX Hub is entwined with some of the leading global FX hubs worldwide, including such data centers in key markets such as New York, London, Tokyo, Singapore, Moscow, Chicago, Hong Kong, Frankfurt, and Zurich, among others. IPC’s network has also achieved widespread connectivity in recent years to key FX liquidity providers and dealers.
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Conversely, the present Hotspot marketplace for outright deliverable forwards functions as an anonymous order book, which is dictated by Hotspot’s matching engine that is hosted out of the NY5 data center in Secaucus, NJ. As a result of the collaboration, Hotspot’s credit infrastructure will be greatly expanded, helping cater to the new product suite.
According to Bill Goodbody, Senior Vice President (SVP), FX, Bats Global Markets, in a recent statement on the partnership: “We are excited that our recently launched marketplace for outright deliverable forwards is a part of the IPC FX Hub and the broader IPC financial ecosystem. This will empower a larger base of institutional investors, asset managers and sell-side firms to securely and reliably access our platform to trade outright deliverable forwards contracts.”
“Connectivity throughout the trade lifecycle and access to an established ecosystem of diverse counterparties have become indispensable to trading FX derivatives given the increased participation of non-dealer financial institutions such as asset managers, pension funds, hedge funds and regional banks in the asset class,” noted David Brown, Senior Vice President and Managing Director, Financial Markets Network, IPC.
“We are pleased that our FX Hub solution is empowering market participants to connect to Hotspot’s marketplace for outright deliverable forwards,” he added.