Supporting the ongoing shift in the FX markets to trade more volume in FX swaps electronically, Refinitiv says it has launched the forwards Matching API solution, enabling automated access to the firm’s forwards Matching MTF venue, which currently trades well in excess of $300 billion daily.
Noting the “strong market demand” to move to trade more volume in FX Swaps electronically, Refinitiv says electronic trading could enhance the efficiency of e-hedging flows and positions especially given the recent growth in FX swaps trades, and further support improved ways of trading in the markets given the impact of the Covid-19 crisis.
Based on Refinitiv’s spot Matching API, the forwards Matching API will further support trading efficiencies and the management of costs for the firm’s clients, it says, adding that with APIs also available for FX swaps, customers will benefit from additional transparency on data and quick access to liquidity bringing greater efficiency across the trading workflow.
From a regulatory perspective forwards Matching is part of Refinitiv’s MTF, regulated by the Central Bank of Ireland, and fully supports MiFID II execution, monitoring and reporting requirements. On the Matching platform, clients can trade FX swaps on the MTF and FX spot off the MTF.
“With the move towards electronification of FX swaps trading comes the need and the opportunities for more innovative solutions to drive efficiencies without sacrificing liquidity and effective trade execution. This is especially true in the ongoing market where the trading workflow has changed considerably,” says Paul Clarke, head of FX venues, Refinitiv. “Matching forwards API delivers on this need. With access to over 300 active client sites trading on the market leading venue for FX swaps, Matching Forwards API will help achieve greater efficiency for FX trading.”