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 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.
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“A bank or broker can invest in a sophisticated pricing engine, or sourcing liquidity 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.