Mosaic Smart Data Launches FXLIQUIDITY for FX Transparency

The service has been launched in collaboration with CLS and MUFG.

Data analytics provider, Mosaic Smart Data, announced that is has launched a new service called FXLIQUIDITY, in collaboration with CLS and MUFG, to provide greater transparency on FX data and analysis, which will go live this Monday.

The purpose of the new service launched by Mosaic is to provide market participants with the ability to navigate current market volatility. To aid with this, Mosaic has published the first in its weekly analysis, based on the data, which covers changes in key currency pairs. This data can be accessed via a dedicated portal and is free of charge. 

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Commenting on the new service, John Winter, CEO of MUFG Securities EMEA, and Head of Global Markets and CIB at MUFG in EMEA, said in the statement: “The economic consequences of the COVID-19 pandemic are truly staggering, and unlike anything experienced before. Clearly, the way in which economies across the world are rapidly adjusting creates many new variables which can be fast-moving and difficult to navigate. 

“We wanted to provide a service to our corporate treasury and institutional clients to help them to better understand what is going on and how the situation is developing in as much detail as possible. Being able to access insights drawn from CLS’s broad view across the markets is a significant part of the solution in rapidly understanding how liquidity flows are evolving.”

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Liquidity is returning to pre-COVID-19 levels

Alongside announcing the launch of FXLIQUIDITY, Mosaic and its partners has also provided the first analysis on the collated data. The report states that liquidity in the foreign exchange (forex) markets is returning to pre-COVID-19 levels for some of the G10 currencies.

However, emerging markets are not fairing as well, according to the analysis of the data. The pre-COVID-19 base line looks at data from the 1st of June 2019 up until the 20th of February 2020. This data has been compared against that collected during the 21st of February to the 20th of March, which was the peak of pandemic-driven volatility, and also more recent data from the 18th of April until the 10th of May.

Across these timelines, the report shows that although liquidity in the FX market is improving, it is not for all currencies and not consistent throughout the day.

In particular, whilst the USD/JPY currency pair was largely unaffected from disruption throughout the crisis, liquidity for the EUR/USD currency pair has returned to almost 80 per cent of its pre-crisis level.

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