After announcing the execution of the first trades during a beta testing phase for its solution designed to facilitate trading the Brazilian real, the Chinese renminbi, the Indian rupee, the Russian rouble and the South African rand, R5FX announced a technological partnership which is part of shaping its offering.
The company has signed a deal with smartTrade Technologies, which already provides its multi-asset trading solutions to a number of banks. brokerages and asset management companies. SmartTrade will build on its existing solution to accommodate the needs of an emerging markets currency trading platform.
The challenges associated with offering emerging markets currencies are mainly associated with the different instruments through which they are traded, with probably the most popular being through non-deliverable forwards.
The solution to be implemented by smartTrade and R5FX is with a centralized credit model. The emerging marketplace launched its beta offering yesterday, aiming to test the system end-to-end and make sure the pricing works well, as banks and liquidity takers go live on the platform.
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R5FX offers both bank and non-bank venues
The CEO of R5FX commented on the partnership announcement, “R5FX offers both bank and non-bank venues, providing equal access to Emerging Market currencies, enabling fast and efficient trading. We chose smartTrade’s platform as it is industry proven, robust, flexible to match our needs, and provides us with the capacity to support future market growth.”
The scalability of the solution has most likely been an important factor when choosing a partner, since electronic trading of emerging FX has spiked higher by almost 300% in the 12 months to November last year, according to data provided in the official partnership unveiling.
The CEO of startTrade Technolgies, David Vincent, added, “Our platform will enable R5FX to offer its customers increased liquidity and a broader range of emerging market related instruments, some of which were not previously available.”
“The platform addresses the need for speed to market, HTML5 user interface customization and will allow R5FX to quickly and seamlessly on-board new clients. smartTrade’s extensive connectivity solution complements and enhances LiquidityCrosser, our fast, reliable and scalable matching engine that supports a variety of order types and executions,” he added.