StanChart Claims Latency Gain from Singapore e-FX Engine

Standard Chartered Bank says it has executed its first FX trade using its newly set-up FX e-pricing engine in Singapore with a “significant” reduction in latency.

The bank established its e-engine in the Singapore hub with support from the Monetary Authority of Singapore (MAS), which established and initiated a plan in 2017 to encourage more FX markets participants to site price engines in the city state.

The bank says the trade was executed with United Overseas Bank (UOB) at 3.15pm Singapore time on January 20 and achieved a reduction in trade latency of over 80%. It adds that the new engine delivered a 40% increase in trading volume compared to the average daily volume in the same time period the previous week. Estimated profitability generated from the trading volume rose more than 30%.

“This is a key milestone for Standard Chartered in support of MAS’s goal to enable more efficient access to liquidity in the Singapore FX market,” says Michele Wee, head of financial markets, Singapore, at Standard Chartered Bank. “As one of the major FX participants in Singapore, we remain committed to leveraging this new solution to effectively serve our clients’ currency and commodities needs by offering them a seamless and consistent pricing experience for their hedging requirements.

“Our clients have a keen interest in going digital – FX e-trading volumes continue to grow year-on-year,” she continues. “In 2019, we have seen a 30% uplift in spot trading volumes via our e-channels. With the enhanced efficiency proven by this trade using the new e-trading and pricing engine, we expect this positive trajectory to continue.”

The Bank now operates four e-trading engines across the world, in London, New York, Tokyo and Singapore.

Colin Lambert

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