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the competitiveness of manual traders by providing them with the functionality and order types they need in order to compete effectively with API traders.


Continuous Match (CM), for example, is a block trading solution that allows bank manual traders to enter large buy or sell interest (minimum $10 million) into a separate liquidity pool, with minimal market impact and slippage. CM orders and deals are not included in any EBS market data and only the two counterparties are aware of the size of the CM trade.


Fix Orders on EBS is another innovative order type that was developed with the bank manual trader in mind. Fix Orders on EBS allow bank manual traders to execute their customers’ fix orders electronically – a first for the market. Tis greatly increases accuracy, as all matched orders are always executed at the specified fixing rate and there is no confusion regarding the amount dealt. Tey also provide a significant boost to internal transparency and audit capabilities.


ICAP acquired the EBS Spot FX platform in June 2006. In what ways have you invested resources to improve the EBS system?


Last year many FX platforms saw record volumes as a result of extraordinary volatility associated with the Eurozone crisis and various currency interventions. How much engineering and capacity planning has ICAP done to ensure you have an adequate cushion to meet practically any multiple of average daily volume?


EBS has proven to be robust, even in moments of extreme market volatility. Te system has the capacity to handle three times our current daily volume record of USD 454.2 billion, back in August 2007. On the day of the ‘flash crash’ on May 6 2010, over a quarter of a million deals were transacted on EBS, and more than three and half thousand deals were done in one minute on 3 March 2011.But this doesn’t mean we’re complacent. We’re constantly reviewing and testing the system to ensure it will be able to cope with even more extreme market volatility.


“ICAP sits at the centre of the


With the acquisition of EBS, ICAP inherited a tried and tested platform that has demonstrated tremendous resilience in all market conditions over the past six years. But for EBS and our other electronic platforms to remain best in class requires substantial and sustained investment. We’ve significantly increased our investment in the platform technology in order to deliver a more flexible and dynamic platform for our customers in a rapidly changing FX market.


markets and financial institutions, including banks and central banks, and governments all around the world depend on EBS to be fair, transparent and available at all times.”


Investors naturally seek safe havens from the turbulence and uncertainty surrounding the major currencies at times of crisis in the market. Does this present opportunities for leading FX providers like ICAP who have a wide global footprint, more robust operational infrastructures and perhaps deeper product and risk management capabilities than many other players?


ICAP sits at the centre of the markets and financial institutions, including banks and central banks, and governments all around the world depend


on EBS to be fair, transparent and available at all times. We’ve worked hard to become and remain a reliable trading venue at the centre of FX price discovery. Because of this, during times of extreme volatility and stress, market participants rush back to EBS.


We’re now nearing completion of a major initiative that will leverage new technology to offer EBS customers a wide range of new products, starting with market data services. You can expect to hear more as our launch date approaches later in the year.


EBS is very active in a number of major currency pairs but this is only part of the story. We’ve developed and launched a number of new products particularly suited to the needs of emerging markets and traders whose focus is outside the G-10 currencies.


For example, in September 2010, the first electronic CNH (Hong Kong cleared and settled Chinese yuan) trade was executed on EBS.


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