Deutsche Bank has announced its intention to establish an e-FX hub in Singapore by developing an FX trading and pricing engine onshore, in conjunction with the Monetary Authority of Singapore. This will be the bank’s fourth global FX centre, along with New York, London and Tokyo and is intended to provide clients with the ability to execute FX transactions more closely aligned with geographic location, reducing latency, improving on local price transparency and liquidity.
Deutsche Bank’s head of fixed income and currencies APAC, head of Corporate Bank APAC and chief country officer, Singapore David Lynne, says, “Given the substantial increase in demand for Asia currency e-FX we have seen in the past five years, growing client sophistication in e-FX trading, and the MAS’ focus on further developing the leading FX centre in the region, hubbing this activity in Singapore makes perfect sense.”
The bank says the hub will be developed and staffed locally, and will be aligned to its focus across e-trading, fintech clients and digital FX payments. It joins a growing list of banks, non-banks and FX trading platforms to locate technology in Singapore, following an initiative launched by the Monetary Authority of Singapore (MAS) in 2017.
“We are heartened by Deutsche Bank’s commitment to build its fourth global FX electronic pricing and trading engine in Singapore, which will complement its APAC fixed income & currencies and global transaction businesses operating here,” says MAS’ executive director, financial markets development, Gillian Tan. “This will allow Deutsche Bank to build on its strengths as a key global FX player and support its regional clients with enhanced price discovery and execution from Singapore, while leveraging Singapore’s strengths as Asia’s pre-eminent FX centre.”
As global cross border payment processes rapidly move towards being completely digital, Deutsche says it will further develop its Singapore infrastructure to be the payments hub for transactional FX business in APAC. This will enable the bank to offer faster, automated FX and payment processes across the high growth but complex Asia markets, creating a centre of excellence to drive digital real time treasury and open banking from Singapore into payment corridors across the region and globally.
With Singapore the Fixed Income and Currencies centre for Deutsche Bank in Asia Pacific, the new e-FX hub forms part of the bank’s continued investment and development into digital and electronic platform client solutions.
“Deutsche Bank’s current e-FX platform spans a wide range of tools for both institutional and corporate clients, with a focus on algorithm and API technology,” says Lee Merchant, co-head of APAC G10 FX at Deutsche Bank. “We have successfully developed these solutions in Singapore and the broader APAC region; we will continue to invest heavily into this area.”