State Street has launched a new electronic FX trading feature, called Quick-FX, which complements its existing FX Connect service, the bank’s multi-bank electronic FX trading system designed for institutional investors.
Quick-FX is targeted at mid-sized corporates and hedge fund managers that require a high-speed transaction capability for single, large spot or forward trades with multiple banks. In addition to the FX Connect network, Quick-FX will be made available on the Internet in the fourth quarter of 2000.
“With Quick-FX, we have responded very rapidly to a common request from the banks who have joined our system for a real multi-bank offering that they can take to their clients today,” says Simon Wilson-Taylor, senior vice president. “With access to QuickFX, corporate treasurers and hedge fund traders can benefit from the kind of highly focused services we have provided to the institutional sector for the past four years with FX Connect.”
More Banks Join Network
Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corporation, in addition to the Australian operation of Deutsche Bank, have agreed to participate in the FX Connect multi-bank service. The banks join nine existing members (including State Street), which also includes ABN Amro and Société Générale, among others.
State Street’s FX Connect launched in 1996, but was opened up to multiple contributors earlier this year, when Deutsche Bank joined in May. FX Connect is available through Global Link, State Street’s central platform for delivery of e-finance applications and services over a private network. Global Link is an open transaction portal that provides pre-trade research and analysis, multi-asset trading and post-trade clearing and confirmation in real time.
FX Connect allows institutional investors to trade foreign exchange with multiple banks in a real-time, interactive environment, according to officials. Designed to seamlessly interface with clients’ existing systems, users can transact spot, forward and swap block trades across an unlimited number of portfolios through multiple banks. This enables investment managers to more effectively integrate FX trading into their portfolio execution process, the officials say.
Global Link’s world-wide client base increased from 167 buy-side asset management firms in the beginning of 1999 to 256 currently.
“Fifteen of the world’s 20 largest investment managers are connected to Global Link and half of the world’s institutional assets are held by managers who already use Global Link,” says Russell Kennett, head of State Street’s global trading and research business for Asia-Pacific. “As part of our open, client-focused approach, we will offer to link clients to additional e-finance portals as they become operational.”
Global Link is currently used by 18 of the largest investment managers in Australia.