Icap and Korea Money Brokerage, South Korea’s largest inter-dealer broker, have formed what the firms term a strategic alliance to further develop electronic spot foreign exchange trading in Korea.
The alliance will offer increased access to EBS, Icap’s currency trading platform, initially in G7 currencies, and enable Icap and Korea Money Brokerage to leverage their two networks and offer joint marketing activities.
Mark Monahan, CEO, Icap electronic broking – Asia Pacific, says, "We believe that this alliance will make a significant contribution to the Korean FX market, accelerating electronic spot FX trading in the region, as well as helping Icap further develop its business in Korea."
Byoungil Kim, president and chief executive officer, Korea Money Brokerage Corp, adds, "The alliance…will support the development of currency trading in Korea and offer Korean traders additional transparency, reliability and liquidity from a diverse group of global counterparties. It will also contribute to strengthening KMB’s competitiveness in the market."
The FX market in South Korea has been growing rapidly in recent years. According to the Bank of Korea, average daily FX transaction volume in the Korean interbank market was approximately $20 billion in 2007, up 76% on 2006. More recently, daily foreign exchange turnover by banks in South Korea rose 10.2% to $27.5 billion in the first quarter 2008 from the previous quarter, according to the central bank, which says spot FX business rose 14.7% to $10.5 billion.