GFI Group has added application programming interface connectivity to GFI ForexMatch for the trading of Latin American non-deliverable forwards, allowing customers to access and contribute to the platform’s liquidity.
The interdealer-broker’s API facilitates real-time price quotations, trade execution and confirmations on the electronic trading platform for FX derivatives.
Six Latin American NDFs and forwards are now actively traded on GFI ForexMatch, both on a central limit order book and request-for-quote basis. They include the Chilean peso/US dollar, Colombian peso/US dollar, Peruvian sol/US dollar, Argentinian peso/US dollar and Brazilian real/US dollar NDFs and the Mexican peso/USD forwards, as well as their respective FX options.
GFI intends to provide customers trading the currency pairs with post-trade connectivity services via MarkitServ, which will provide connection to central counterparty clearinghouses in line with requirements outlined in the Dodd-Frank Act.
“We are expanding our business operations in Latin America, boosted by the success of our hybrid trading platform for FX derivatives,” says Paul Millward, GFI ForexMatch product manager. “We are providing our clients with the latest technology in connectivity, which will become even more critical once swap execution facility rules under the Dodd-Frank Act are implemented. GFI intends to incorporate GFI ForexMatch into its SEF.”
SEFs are one of the primary mandates of the Dodd-Frank Act. They are required to increase pre-and post-trade price transparency and minimise bilateral exposures between swaps counterparties by bringing together on one platform multiple buyers and sellers in a non-discretionary way.
GFI Group has expanded its presence in the Latin America region through acquisitions and office openings in Argentina, Chile, Colombia and Peru. Earlier this month it received approval to open an office in Mexico (Squawkbox, 5 September).
Latin America has seen a rise in interest from international investors, which in turn has acted as a magnet on the largest interdealer brokers. GFI in particular has earmarked countries in the region as advancing growth markets that have been relatively unscathed by the recent financial crisis.