REGIONAL e-FX PERSPECTIVE
>>>
from single bank platforms to multiple bank pricing via electronic communications networks (ECNs) and multi asset class platforms to suit different needs.” “With e-trading becoming the norm,” adds Ng, “and with the presence of stronger competition, prices have also narrowed tremendously.”
Competition and price discovery
As an indication of the power of electronic trading to introduce competition and accommodate best pricing, the compression in bid-offer spreads has been dramatic, to as tight as three basis points for major currency pairs. But growth in the use of electronic trading channels on both the buy and sell sides still has some way to go.
On the buy side the attractions for corporate treasurers, asset managers, hedge funds, second and third tier banks and broker dealers is easy to appreciate. “Tey can access liquidity from a single source on our platform, with a single straight through processing (STP) with full transparency,” says Kuppe. “Traditionally a corporate treasurer picked up the phone to three different banks, selected the best price, wrote the deal and then followed up with internal admin for their in-house treasury management system. Now they can check all the pricings of our panel banks, execute the deal, enter it in the treasury management system and complete the audit trail – all in ten seconds.”
Single bank offerings
Te major banking and securities houses may feed into multibank platforms such as 360T’s while at the same time offering their own. Saurabh Sharma, vice president FX electronic market sales at Nomura says, “Our proprietary platform, Nomura Live, is increasingly gaining traction in the region. Our focus is on offering a bespoke solution to clients, be it developing an algorithmic toolkit or a currency basket to suit their specific needs.”
JP Morgan’s Morgan Direct platform is similar but incorporates a hybrid approach to price quotation, accessing the firm’s in-house prices as well as those from the wider market. At RBS Jamie Salamon says that their platform, RBSM, provides clients with a variety of advanced tools should they want to trade using a Volume Weighted Average Price (VWAP) or clients may want to use their new ‘RBS Agile™’ platform to specify automated strategies for their gamma hedging requirements. He adds that the buy- side is increasingly making use of algorithms.
Jamie Salamon
“
..as more money comes into Asia, FX has become a much more attractive asset class to investors as some clients move away from other investment products.”
Mathew Kuppe is Managing Director at, Singapore based, 360T Asia Pacific Pte. Ltd., the multi-bank trading platform provider. 360T has 110 market maker customers worldwide who are the major global and regional banks that provide and price liquidity through the firm’s platform. Kuppe explains that 360T has been in Singapore for five years and has doubled its turnover every year. He anticipates 80% growth in 2012.
74 | january 2012 e-FOREX
Other major players offering similar platforms and services include HSBC and Citi among others. Meanwhile Standard Chartered, which reportedly has over 150 staff on the forex sales and trading side throughout South East Asia, now processes 80 per cent of its deal flow in the region electronically. Moreover it continues to offer innovative crosses involving more exotic Asian currencies.
Freedom from regulation
Speaking to market practitioners in the region it doesn’t take long before they mention Asian currency of crisis 1997 – 1998. It may be a long time ago but the scars run deep. Tings are different now. Economies in the region have amassed large foreign currency reserves as well as substantial sovereign
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150 |
Page 151 |
Page 152 |
Page 153 |
Page 154 |
Page 155 |
Page 156 |
Page 157 |
Page 158 |
Page 159 |
Page 160 |
Page 161 |
Page 162 |
Page 163 |
Page 164 |
Page 165 |
Page 166 |
Page 167 |
Page 168 |
Page 169 |
Page 170 |
Page 171 |
Page 172 |
Page 173 |
Page 174 |
Page 175 |
Page 176 |
Page 177 |
Page 178 |
Page 179 |
Page 180 |
Page 181 |
Page 182 |
Page 183 |
Page 184 |
Page 185 |
Page 186 |
Page 187 |
Page 188 |
Page 189 |
Page 190 |
Page 191 |
Page 192 |
Page 193 |
Page 194 |
Page 195 |
Page 196