FXSpotStream has onboarded State Street as the latest liquidity provider to its service, hired a new CTO and revealed plans to make a new analytics suite available to its liquidity providing banks and clients.
State Street becomes the 13th bank to go live as a liquidity provider on FXSpotStream’s price aggregation service, after Bank of Tokyo-Mitsubishi UFJ (BTMU) was added in December 2015.
“We know from client requests that liquidity from State Street will be a welcome addition to FXSpotStream’s existing bank liquidity. Our service provides State Street an expanded e-distribution network through our global connectivity network and client base. With co-location sites in New York, Tokyo and London, clients can use either our GUI or single API connection to access State Street’s liquidity,” Alan Schwarz, CEO of FXSpotStream, tells Profit & Loss.
Schwarz also reveals that FXSpotStream has hired Tom San Pietro in New York as its new CTO.
Prior to joining FXSpotStream, San Pietro had been with Thomson Reuters, most recently working as head of FX/MM trading venues.
He joined Thomson Reuters when it acquired FXall, where he had been working as head of active trading in 2012. Prior to that, San Pietro spent seven years at Lava Trading, where he worked as both the CTO and the CEO of the platform.
San Pietro also has experience on the banking side, having worked as a consultant for JP Morgan between 1998 and 2003 and as vice president – global trading systems at Chase Manhattan Bank between 1992 and 1997.
“Tom brings deep experience in the FX market, both on the bank side and the ECN side, and this will help continue our rapid growth and place as an innovator in the FX market,” says Schwarz.
In October, FXSpotStream plans to launch an analytics suite that will provide clients and banks, on a real-time basis via an HTML GUI, information on the lifecycle of orders and trades.
“Part of the reason for FXSpotStream coming to market nearly 6 years ago was to provide more transparency, and this analytics suite continues to fulfill our original goal,” says Schwarz. “It will provide clients statistics on order response times, how long it takes us to send the bank’s prices to the client, have a good amount of information about spreads offered by each of the client’s liquidity providers and allow clients to benchmark their banks. Plus, our banks will be able to monitor and in real time address issues with any of their clients supported by our service”
Schwarz notes that the importance of offering this type of analytics has grown as buy side firms are increasingly under pressure to explain and justify when, where and how they conduct their FX transactions.
FXSpotStream is also expanding its product list; in August, the first NDF trade was completed on its service and this product type is now live globally. In addition, the firm plans to launch precious metals (PM) swaps next month.
“We already offer PM spot trading and FX swaps trading and so, based on client and bank demand and feedback, we decided to also begin supporting PM swaps too,” explains Schwarz.
Profit & Loss previously reported that FXSpotStream posted strong trading volumes in August, with an average daily volume for the month of $19.2 billion, a 9.5% increase from July and up an impressive 54.6% year-on-year.
Schwarz says that this growth was not caused by any one particular factor – such as a new client coming on board, increased bank activity or new functionality – but rather, that it is the result of FXSpotStream’s longer term growth strategy.
“Our number one priority is making sure that we take care of what’s already in the door, we’re constantly talking to our clients to see how we can service them better and as a result grow our business with them. Then you’ve got to make sure that others know the type of quality service we offer and add more clients to the service and available to our liquidity providing banks. Priority number three is looking for growth opportunities within the jurisdictions where we already operate.
“Priority number four is identifying growth opportunities in new jurisdictions. For example, partly due to the Profit & Loss Latin America conference we have attended over the last 2 years, Mexico has been a great growth story for us. We have several clients out of Mexico now and we’re looking at potential opportunities in Peru, Brazil, Colombia and Chile as well. And then finally, the last priority is that we’re always looking for new functionality that we can offer to our clients,” says Schwarz.