Deutsche Bank AG, Tokyo Branch, became the first bank in Japan to offer its customers fully automated FX trading through the Internet on 16 March, using same Cognotec’s AutoDeal LITE system. Meanwhile, last month Fuji Bank became the first Japanese institution to provide automated online FX dealing for corporate customers, using the same system.
Using the Cognotec AutoDeal LITE service, which was implemented by Tokyo-based Forexbank (the joint venture company between Softbank Finance Corp of Japan and Cognotec of Ireland) Deutsche Bank now offers its corporate and institutional clients the ability to automatically execute FX transactions.
The system permits FX prices to be quoted and transactions executed on a real-time basis. Transactions are automatically reflected in Deutsche Bank’s trading records immediately upon execution.
“The launch of this service in Japan demonstrates our market leadership and gives our clients an additional way of doing business with us,” says Noboru Harada, head of FX sales, Deutsche Bank AG, Tokyo Branch. “We believe that offering this service will lead to the continued growth of our businesses in Japan by giving clients the opportunity to automate routine transactions and enabling our sales force to focus on value-added larger and more sophisticated transactions.”
Fuji Bank began rolling its service to clients in April, covering spot, outright forwards, same day value and forward option trading in Us dollars and Japanese yen. Other currencies will be added as customer demand warrants. Initially, AutoDeal LITE trading will be limited to normal business hours, but the bank plans to eventually provide a 24-hour forex trading service. Moreover, it plans to provide the service to retail customers in the future.
The Softbank Finance Group currently holds a 17% equity stake in Cognotec, having invested an initial $20 million in October 1999 and an additional $20 million in January 2000.