FX Distribution Hub Continues To Attract Major Banks - Commerzbank Joins The Fold

Almost a year has passed since Dealhub announced the launch of FX Distribution Hub, a new service which allows customers to price into any FX market destination via a single interface, which continues to garner support from large financial institutions.

Today, the company announced that German financial giant Commerzbank has selected the FX Distribution Hub as a mainstay of a new price distribution infrastructure, which is intended to enhance pricing and flexibility for FX traders.

Latency Optimized Connectivity

The first venue to go live on the service will be FX Connect, followed by multiple venues in the months ahead. This particular service intends to provide Commerzbank with latency optimized connectivity to their chosen venues through co-located hosting facilities.

Mark Briant-Evans, Head of Marketing at DealHub explained to Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates at this year’s iFXEXPO in Cyprus: “Simply facilitating connectivity between venues is only part of the solution toward seamless trading environments worldwide. Fragmentation can make the FX market a difficult place in which to trade – at least from a technological perspective.

“A bank or broker can invest in a sophisticated pricing engine, or sourcing Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term from multiple providers, but they’re increasingly finding that they need to distribute that liquidity via multiple venues and trading channels according to customer demand – and what they’re faced with is a real lack of standardization” concluded Mr. Briant-Evans.

At that time, Mr. Briant-Evans alluded that DealHub’s core business is the provision of connectivity and low latency solutions to the FX trading divisions within major banks, however, the company’s future plan is to expand this into FX companies as well as banks.

Nick Downes, Global Head of eFX sales at Commerzbank Corporates & Markets made a statement on behalf of the bank: "We want to continually improve our connectivity, expanding the range of ECNs customers can use to access our liquidity.”

“DealHub's FX Distribution Hub gives us all the benefits of co-location and optimised latency, with the ability of adding new venues very rapidly. This flexibility means we can react quickly to a fast changing ECN landscape, while keeping our internal resources focused on ensuring our customers receive our best prices, wherever they want to trade” explained Mr. Downes.

Chris Leaver, COO of DealHub, further added: "We are delighted to add Commerzbank to our FX Distribution Hub - they join a growing list of banks, from Tier 1 price makers to regional specialists, using the service to cut the cost and time to market for multi-venue price distribution.”

“We've spent years perfecting our trading interfaces to optimise pricing performance, taking the trouble to understand the nuances of each venue. Now, our customers are taking advantage of all of this connectivity and expertise via one simple interface to the hub” concluded Mr. Leaver.