FX turnover is down, but not by as much as some expected. Why?
FXecosystem has opened its new regional headquarters in Singapore and a point of presence (POP) in the Equinix SG1 Singapore data centre.
The firm says that the expansion is designed to accommodate current retail and institutional client requirements and will underpins its strategy for growth in the region.
It follows a six-month operation of FXecosystem's new NOC and engineering facility in Asia and the firm says that it will continue building its team, with new hires in Asia scheduled for Q1 2017.
Industrial and Commercial Bank of China’s (ICBC) Singapore branch has adopted Thomson Reuters FX e-commerce solution Electronic Trading to strengthen its presence in the foreign exchange market.
Thomson Reuters says ICBC is the first Chinese bank to adopt this solution, which provides efficient market making capabilities and allows ICBC to price CNH and other G10 currencies across Asia with various branches, interbank clients and corporate clients.
“As China's largest bank and the official CNH clearing bank of Singapore, ICBC Singapore is committed to offering a full range of integrated financial services in the CNH and other key currencies to our clients," says Zhang Weiwu, general manager of ICBC Singapore.
The Australian Competition and Consumer Commission (ACCC) has commenced legal proceedings on a consent basis against ANZ and Macquarie Bank in relation to alleged attempts to engage in cartel conduct in FX markets.
The ACCC says that following cooperation by ANZ and Macquarie, the parties have agreed that a Macquarie trader and multiple traders within ANZ engaged in a private chatroom to discuss daily submissions to be made to the Association of Banks in Singapore (ABS) in relation to the benchmark rate for the Malaysian ringgit fixing rate.
The Intercontinental Exchange (ICE) has announced the appointment of Lee Yi Shyan as chairman of ICE Futures Singapore (IFS) and ICE Clear Singapore (ICS) effective November 24 2016.
Lee is a Member of Parliament in Singapore and previously served in the Singapore government over a 10 year period as a senior minister of state in the Ministry of Trade and Industry, the Ministry of National Development and the Ministry of Manpower.
Prior to this, between 2001 and 2006, he served as the CEO of International Enterprise Board, an organisation promoting international trade with businesses in Singapore. Lee joined the boards of IFS and ICS on November 7.
The Monetary Authority of Singapore (MAS) has issued guidelines for the conduct of businesses offering execution advice, including in foreign exchange markets.
MAS says the guidelines are intended to set out standards to be maintained by dealers when they provide execution-related advice and they do not apply in circumstances where a dealer merely carries out instructions by a client to buy or sell a specific product without the dealer making any recommendation or giving any advice in relation to that product.
Ethernet, cloud and hosting provider, BSO, has added Singapore and Hong Kong to its FX circuit, citing growing demand for fast and reliable access to trade currency derivatives in emerging markets as the reason for the expansion.
The new routes, built on top of BSO’s London-New York-Tokyo circuit, will enable market makers using the BSO network to trade currency derivatives up to 10 milliseconds faster than before.
The new circuit includes improved latency and more diverse paths between London and Singapore, as well as a new trans-Pacific route for firms looking to trade between New York and Hong Kong. BSO says that it has also optimised its London-Tokyo link to the lowest latency available on the market.
The Monetary Authority of Singapore (MAS) says it will encourage key FX players to site their pricing and matching engines in the city state as it strives to become “a leading financial centre in Asia”.
In a speech delivered launching Singapore’s industry transformation map (ITM), Ong Ye Kung, Minister for Education (Higher Education and Skills) and MAS Board member, described MAS’ vision for Singapore being one that connects global markets, supports Asia’s development, and serves Singapore’s economy. The ITM was drawn up by MAS in consultation with the financial industry and the tripartite movement, MAS says.
The latest round of FX committee semi-annual turnover surveys indicate that activity globally dipped slightly in October 2017 from the previous April, but was up year-on-year.
The US was the bright point amongst the surveys, showing a 6.2% rise from April 2017’s level and 7.2% higher than the previous October, while the UK, still easily the world’s largest FX market, saw activity decline by 4.3% from April, however it was up 5.4% year-on-year. Elsewhere, all centres saw slightly higher activity from the April 2017 survey, however Singapore and Canada were up on a year-on-year basis while Japan and Australia declined slightly.
The Monetary Authority of Singapore (MAS) says it will introduce regulations to require OTC derivatives to be cleared on central counterparties (CCPs) with effect from 1 October 2018.
MAS says central clearing will make the trading of OTC derivatives in Singapore safer as it mitigates counterparty credit risks inherent in these trades.
The mandatory clearing requirement will apply to Singapore dollar and US dollar fixed-floating interest rate swaps as these are the most widely traded interest rate derivatives in Singapore. Banks whose gross notional outstanding OTC derivatives exceed $20 billion will be required to clear their trades through CCPs that are regulated by MAS.
Trading firm XTX Markets’’ Singapore entity is building a new FX pricing and trading engine which will go live in Equinix’s Singapore SG1 data centre in June 2018.
XTX says it believes that the SG1 build-out will enhance the e-FX trading experience for XTX’s counterparties in the region and in turn, help increase participation rates and volumes for e-FX activity conducted within Singapore to benefit the regional FX market ecosystem.
“Under the Financial Services industry transformation map (ITM) introduced in October 2017, MAS aims to enhance the e-FX trading infrastructure to improve market transparency and facilitate price discovery of FX trading in the Asian time zone,” says Alan Yeo, executive director, Monetary Authority of Singapore (MAS).
“It’s not rocket science, but it is a different approach compared to other exchanges,” says KC Lam, head of FX and rates at SGX, when discussing the exchange’s new FlexC FX futures, which aim to “futurise” certain OTC FX product offerings.
This is, of course, a reference to the recent product initiatives launched by various exchange groups in an attempt to bridge the gap between OTC and listed FX trading.
While Eurex has launched rolling spot futures, which mimic the trading of OTC FX spot contracts, combined with the daily usage of a tom-next (T/N) swap in order to roll over the value date of the spot position, and CME has launched CME Link, spot FX basis spreads offered on Globex to create a central limit order book (CLOB) between the OTC spot FX and CME FX futures markets, SGX is indeed taking a very different approach.
Connectivity and IT infrastructure solutions provider Avelacom has opened a new office in Singapore, managed by Gabriel Bassas, who has been appointed VP sales for APAC.
In the past year Avelacom says it has seen double-digit growth in new business volumes coming from the APAC region, driven by clients demanding professional-grade connectivity services between APAC venues and exchanges, and to those in Europe and the USA.
It adds, that new business is expected to increase over the next few years, also driven by the growth of APAC crypto exchanges, which are starting to deploy high performance physical IT infrastructure demanded by trading institution clients.