UBS Warburg has launched several new initiatives as part of its e-business strategy, including a new business-to-business foreign exchange transaction platform (“Fx2B”) and the spin-off of its Interchange chat service.
Fx2BTM has an API (application interface) into the price broadcast and deal capture capabilities of UBS Warburg’s global treasury products division. It provides real-time pricing on a 24-hour basis as well as straight-through deal processing; it can be used to plug directly into the software systems used by banks, corporates and other FX clients. In one of its first uses, Fx2B will be used to provide live FX pricing and execution for E*Trade Group’s global cross-border trading network for online investors, as part of a recently announced partnership.
Fabian Shey, Managing Director and UBS Warburg’s Head of Global E-commerce, Treasury Products, says the deal with E*Trade will be to service the FX component that results from cross-border equity transactions. “E*Trade’s front office system plugs directly into our front office system. Transactions are generated automatically, so the processing efficiencies are enormous,” explains Shey.
UBS has also unveiled Investment Banking On-Line (IBOL), its Web portal for institutional clients, which provides high-end analytical tools, real-time quotes, research, advice and commentary. The portal gives users access to UBS Warburg’s content across Treasury Products (FX & cash/collateral trading), Equities, Fixed Income and Corporate Finance.
Last month, UBS Warburg sold its online chat facility Interchange, to divineinterVentures, a Chicago-based Internet “incubator”, which has formed a new company called Parlano Inc, in which UBS AG will maintain an interest. Users can chat online and share information in real-time, as well as send files. Already it has about 10,000 internal and external users, including 175 external client sites.
In another initiative, the bank has released a daily Sentiment Index for USD/CHF, to reflect how investors and other market players expect the US dollar to move against the Swiss franc in the next three months. The system calculates an average exchange rate in Swiss francs – the reference value of the UBS Sentiment Index.
The new instrument and the latest rates can be found on the homepage of UBS Quotes, UBS’s online price quotes information system (www.ubs.com/quotes). The UBS Sentiment Index is also available in the UBS Kursfenster (UBS exchange rate window), which appears several times a week in the Swiss financial press.