Tradebook FX (TBFX), Bloomberg’s FX ECN, has reached an agreement with Citi for the bank to serve as a central clearing counterparty (CCP) on the platform.
“We feel that the combination of Citi’s expertise in FX, and FXPB in particular, and market leading role in foreign exchange globally, coupled with the wide network of Bloomberg clients will be very synergistic,” says Tom Murphy, head of FX, futures and equity options sales at Bloomberg Tradebook.
Citi will be the second CCP on TBFX, with Bank of America Merrill Lynch having acted in this capacity for the past eight years. Murphy says that it has long been the intention to add a second CCP to the platform as it will provide clients with greater flexibility.
“Bank of America Merrill Lynch has been a great partner with us in TBFX for eight years. Over that time, we have grown our business tremendously and that would not have been possible without them as a partner.
“As our business has grown, we saw an opportunity to expand our CCP offering and better support those clients who wanted to have more than one credit counterparty. Partnering with both BofA and Citi will allow us to give our clients more choice and flexibility,” he says.
In addition to this, Murphy claims that Citi is a good fit for TBFX because most firms that trade FX already have a relationship with the bank.
“From a client’s perspective, trading with a CCP that they already have a trading relationship makes it easier for all parties involved. The client knows the clearing bank, the clearing bank knows the ECN – and that is a great combination. Citi is the right choice at the right time,” he comments.
The deal was officially agreed by both parties in early August.