SGX launches SGX CurrencyNode FX trading venue
Raphael Lim
THE Singapore Exchange (SGX Group) has launched its foreign exchange (FX) electronic communication network, SGX CurrencyNode, after obtaining a recognised market operator licence from the Monetary Authority of Singapore (MAS).
SGX CurrencyNode offers market participants such as global banks, brokers and institutional investors access to multiple sources of over-the-counter (OTC) FX liquidity anonymously through a single venue, SGX Group said in a statement on Wednesday (Sep 21).
Lee Beng Hong, head of fixed income, currencies and commodities at SGX Group, said the launch is “an important step in enhancing the price discovery, efficiency and liquidity for Asian currencies”.
“Our goal is to create a best-in-class FX marketplace that elevates market participants’ access to both OTC and listed futures, aggregating market liquidity and serving all their FX hedging and trading needs with strong efficiency and liquidity,” he said.
Using a central prime brokerage model, SGX CurrencyNode currently streams liquidity for FX spot, precious metals and non-deliverable forwards (NDFs), and there are plans to launch FX swaps and NDF spreads later, SGX Group said. BNP Paribas and Deutsche Bank are the central prime brokers.
SGX Group has been investing to expand its FX business and acquired subsidiaries such as BidFX and MaxxTrader in recent years. The group said that SGX CurrencyNode completes the buildout of its OTC FX infrastructure.
Lim Cheng Khai, executive director, financial markets development department, MAS said: “With global regulatory developments in margin requirements affecting the FX industry, there will be an increasing need for venues that seamlessly integrate OTC FX and listed futures. SGX Group’s investment in capabilities to meet this demand will further enhance Singapore’s value to market participants in the Asian timezone.”
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