360T, Deutsche Börse Group's FX unit, and Thomson Reuters (TR) have agreed to collaborate in order to enable pricing of Thomson Reuters FXall customers through 360T's rate engine technology.
Banks using the 360T pricing engine infrastructure, comprised of Market Maker Cockpit and Auto Dealing Suite, can now directly price their customers on the FXall multibank platform.
Landesbank Hessen-Thüringen (Helaba) is the first German financial institution to go live with the new connectivity. Through the interface, Helaba can quote customers on both the 360T and FXall platforms utilising 360T's FX price engine technology.
The three largest FX platforms to report average daily volume (ADV) have reinforced the message from the first group to report that May was a good month for the industry. All three of CME Group, NEX Markets and Thomson Reuters have reported sizeable increases in activity both month-on-month and year-on-year, with NEX rising 25% from April, CME up 34.1% and Thomson Reuters up 12.6%. All three platforms report ADV in excess of $100 billion for the third time this year, a feat last achieved in June 2015.
May was a good month for OTC FX platforms, judging by the first set of venues to report trading volumes.
GTX’s ECN and SEF set a new monthly ADV record of $16.8 billion, beating the previous record of $16.1 billion set in February this year and up from $13.3 billion last month.
Elsewhere, GTX’s monthly volume of $385.5 billion surpassed the previous $322.7 billion, also set in February, and the venue bested its previous daily record volume five times in May, registering a new high of $26.8 billion on one of these days.
These figures mean that both total monthly volumes and ADV on the GTX ECN and SEF were up 56% year-on-year in May.
Deutsche Börse has further built out its OTC FX business with the announcement that its 360T unit, which is responsible for foreign exchange at the firm, has agreed to acquire the GTX ECN business from Gain Capital for $100 million – the deal is expected to close in the second quarter of 2018. The exchange group says, to reflect the importance of the GTX brand and its place in the 360T product suite, the company will be renamed to 360TGTX.
LMAX Exchange has launched what it says is the first physical cryptocurrency exchange dedicated to serving only institutional clients.
LMAX Digital, which will support bitcoin, ether, litecoin, ripple and bitcoin cash, at the request of existing institutional clients who the firm says desired a credible, efficient and trusted platform on which to trade digital currencies with like-minded institutions.
“We are furthering the legitimisation of the cryptocurrency market by offering institutions a platform on which to acquire, trade and hold cryptocurrencies securely with high quality, deep liquidity,” says David Mercer, CEO of LMAX Exchange.
Thomson Reuters is planning to move its FX Multilateral Trading Facility (MTF) from London to Dublin as a result of Brexit.
In a release issued today the firm says that it has commenced the process of applying to the Central Bank of Ireland (CBI) for authorisation to operate its FX UK’s planned departure from the European Union on 29 March 2019.
The Thomson Reuters MTF – which includes forwards matching and FXall RFQ and dealing – are currently operated by Reuters Transaction Services Limited (RTSL), a Thomson Reuters company incorporated in England and Wales, which is authorised and regulated by the Financial Conduct Authority (FCA).
As LMAX Exchange Group (LMAX) reports strong 2017 financial results, its CEO, David Mercer, insists that the firm is well positioned to compete with larger FX platforms that have been acquired by exchange groups.
LMAX’s EBITDA was £8.8m, up 58% year-on-year, and it has reported a gross profit of £25.4m, up 22% year-on-year.
This is the second consecutive year that the platform has posted significant financial growth – looked at over a two-year period, its annual EBITDA growth is 151%, will on an annual basis gross profits are up 28% and notional volumes are up 20%.
The total average daily volume (ADV) of FX trading across Thomson Reuters’ platforms in April 2018 totaled $441 billion, down 4.3% from the $461 billion ADV it recorded the previous month.
However, this figure still represents an 18% increase year-on-year from the $347 billion of ADV it recorded in April 2017.
These totals reflects trading volumes on Thomson Reuters Matching and FXall in all transaction types, including spot, forwards, swaps, options and NDFs.
The ADV for spot trading on these platforms was $95bn last month, down 9.5% compared to March 2018, but up 9.1% compared to the same month the previous year.
Private equity group CVC Capital Partners’ Asia Fund IV has had an offer accepted to acquire all of the outstanding equity of online retail trading technology and analytics provider Oanda Global Corporation.
Terms of the deal were not disclosed and it is subject to regulatory approval. Under the new ownership, Oanda will continue to be led by CEO, Vatsa Narasimha.
Siddharth Patel, senior managing director at CVC, says, “We look forward to working closely with Vatsa and his team as we help support Oanda, especially in Asia, in making strategic acquisitions and in investing to further broaden its product set.”
Integral has begun reporting the monthly average daily volume (ADV) of FX products traded across its platforms, revealing that in April this ADV was $35 billion.
The firm says that this figure is consistent with the ADV that it recorded throughout the first quarter of 2018, which were between $34.5 billion and $38.5 billion.
Speaking to Profit & Loss, Harpal Sandhu, CEO of Integral, says the decision to start publishing monthly trading volumes was driven, in part, by the ongoing curiosity from market participants regarding the platform’s growth.