Gaining momentum for its slate of products, TradAir has announced that Turkish bank, Yapi Kredi has selected TradAir’s rate engine and distribution solution for its FX trading desk. The announcement comes two weeks after it was revealed that Raiffeisen Polbank has begun to use their products. A provider of front office FX solutions, among TradAir’s main products is its rate engine distribution solution which allows banks to disseminate FX liquidity in both streaming and by request to internal customers and external ECNs.
Speaking to TradAir CEO, Illit Geller, last year, she explained to Forex Magnates that specifically they are receiving demand from regional banks, such as those in Southeast Asia, Turkey and Israel that are using TradAir’s solutions to stream their local currency liquidity to the global markets. As operators in the local capital markets and receiving natural flow for foreign currency services such as hedging and conversion of securities into local currencies, regional banks are often able to provide tighter pricing of their local currencies than from what is available from the large global primary bank FX market makers such as Deutsche Bank and Citi. Examples of regional banks with large global market shares in FX trading of their local currencies include Standard Bank with the South African rand, and Nordic banks such as SEB and Danske with the krona.
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For many regional firms though, technology costs as well as entrenched voice- based FX businesses have kept them from connecting their liquidity to the global markets. However, as costs for trading technology have declined dramatically, with several providers even offering no upfront fees to launch their white label solutions, it has led to a spike in regional-based banks offering eFX services to both their customers and external destinations.
According to TradAir’s public statement on today’s news, Yapi Kredi, Turkey’s fourth largest private bank will use TradAir’s solution to distribute pricing to both the bank’s internal network of 949 branches as well as to external FX trading platforms. Commenting in the public release, Geller stated, “We are delighted that Yapi Kredi, a leading and innovative Turkish bank, has chosen TradAir Rate Engine and Distribution for its global FX trading desk, delivering customized price distribution to its clients and branch network. As a result, Yapi Kredi will be able to participate in the FX market alongside the leading global banks on an equal footing. We look forward to working with Yapi Kredi and building on our relationship going forward.”