US investment bank Citi is bringing its FX pricing and trading engine to Singapore with backing from the country’s regulator, the institution recently confirmed.
Citi’s trading engine has been developed in-house and the bank has already launched the platform in London, New York and Tokyo, with Singapore being the fourth country where it will distribute awards to clients.
The Monetary Authority of Singapore (MAS) has expressed its support for the currency pricing and trading engine as a significant boost in Singapore’s development as a liquidity hub in Asia.
“Most market participants have located their Asian FX trading and trading teams in Singapore, and a Singapore-based electronic FX trading ecosystem will better support price discovery and efficient trade execution during business hours. trading in Asia,” said Alan Yeo, head of financial markets. development at MAS, commented.
The platform features proprietary pricing and a hedging algorithm, and will initially offer trading in 23 spot currencies as well as two precious metals. Citi expects the platform to launch in Singapore sometime in the fourth quarter of this year.
“Citi has a long-standing and thriving FX hub in Singapore, and this partnership with MAS only reaffirms our long-term commitment to the country and region,” said Itay Tuchman, global head of FX trading at Citi. “As one of the first liquidity providers to create an electronic forex trading engine in Singapore, we look forward to growing the forex trading ecosystem, especially as the growth of electronic trading accelerates. for spot and NDF currencies.”
Last year, Swiss investment bank UBS launched a similar initiative with MAS and announced plans to launch its own FX pricing and trading engine in Singapore. Like Citi, UBS said the move would improve liquidity and bring additional efficiencies to foreign exchange markets in Asia. UBS’s platform was expected to launch by the middle of this year.
Citi’s head of securities markets and services for Asia-Pacific, Stuart Staley, has concluded that the expansion of its FX trading engine will also lead to significant latency improvement for clients in Singapore and all over the world. Asia-Pacific, which historically connected via Tokyo or one of the trading engines. outside the region.
“While Asia-Pacific is expected to attract a greater share of global investment flows, this initiative will improve price transparency and facilitate more efficient price discovery in the region’s time zone,” he said. declared.