Refinitiv Automates Access to FX Swaps with Forwards Matching API

The new product enables traders to leverage API connection to replace the manual processes that exist in FX Swaps world

Financial data vendor Refinitiv has enabled automated access to its Forwards Matching MTF venue as the market demand moves to trade more volume in FX Swaps electronically. Refinitiv’s Forwards Matching API solution supports trading efficiencies and streamlines the management of costs for its clients.

The new product enables traders to leverage a GUI or API connection that replaces the manual processes that exist in the FX Swaps world today, all embedded into a MiFID II compliant offering.

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The initiative, which complements Refinitiv’s existing MTF offering, allows members to submit interest to buy or sell without having to worry that other participants would know the direction of the order intent. The former Financial and Risk business of Thomson Reuters said customers benefit from independent swap market rates, which ensure price transparency through an indicative mid-market rate while provides access to firm bid and offer liquidity.

Forwards Matching API is based on the venue’s Spot Matching API product, which produces FX swap market information from the OTC market through a contribution model of liquidity providers.

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FX Swaps trading moves towards electronification

From a regulatory perspective, Forwards Matching is part of Refinitiv’s Dublin-based multilateral trading facility (MTF), which covers both the FXall and Forwards Matching trading units. With approximately 900 client sites connected and almost 200 client sites trading through the Matching API, clients can trade both FX Swaps on the MTF and FX Spot off the MTF.

Global FX swap volumes surged to nearly $3.2 trillion per day and now account for almost half of global FX trading, according to the Bank for International Settlements’ latest survey, mirroring a pick-up in the spot market and reflecting strong trends in OTC sectors.

“With the move towards electronification of FX Swaps trading comes the need and the opportunities for more innovative solutions to drive efficiencies without sacrificing liquidity and effective trade execution.  This is especially true in the ongoing market where the trading workflow has changed considerably,” said Paul Clarke, Head of FX Venues at Refinitiv.

Refinitiv, whose Eikon terminals challenge those provided by Bloomberg, is set to be acquired by London Stock Exchange in a $27 billion deal. LSE said there is a lot of overlap with Refinitiv in areas including technology, property, and corporate functions, which allows for combining the data generated by the exchange with Refinitiv’s distribution and analytics.

Refinitiv reported earlier this year that the average daily volumes (ADV) of currency trading were $540 billion in March on the company’s main FX trading services.

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