FX Brokers and Platforms Launch Centralization Initiative
![forexboard forexboard](/sites/default/files/styles/landscape_750_463/public/import/IMG/489/88489/forexboard-580x358.jpg.webp?itok=1_tmIUM3)
A number of foreign exchange (FX) prime brokers have partnered with widely used platforms in an effort to reduce risk factors in algorithmic and high-intensity FX trading.
Traiana, Deutsche Bank, Citi, JP Morgan and Morgan Stanley today launched an initiative developed in conjunction with Bloomberg Tradebook, Currenex, Thomson Reuters, EBS, FXCM and Hotspot FX, which aims to centralize the management and monitoring of electronic communication network (ECN) trading limits and activity on a global scale.
Deutsche Bank was the first to implement the updated Harmony CreditLink service, now available to all Harmony subscribers. The platform will allow users to monitor credit risk for their clients on a real-time basis across multiple ECNs, from a single dashboard interface, as well as manage credit lines to maximize investment while maintaining a view to minimizing risk. The prime broker will, on notification of limit breach, be able to modify or terminate transactions with immediate effect.
"The increase in high-frequency and algorithmic FX trading has made the provision of adequate control and real-time risk management of critical importance," says Michael Irwin, co-head of FXPB at Morgan Stanley.
Andrew Coyne, Head of FX Prime and G10 e-commerce at Citi also highlights his view of the initiative's importance: "This collaborative industry initiative addresses a fundamental and immediate industry need - that of providing trading and limit management to prime brokers to enable them to monitor their clients' credit risk in real-time. Initiated independently of any regulatory call for change, this new solution will fundamentally change the way the FX industry operates going forward," he says.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Trading Tech
This Week: FCA, Plato/Turquoise, Franklin Templeton, and more
A summary of the latest financial technology news.
CME: CFTC OKs clearing move to Google Cloud
The CFTC has given the Chicago-based exchange approval to run its clearing and settlement infrastructure on the Google Cloud Platform, while the exchange and vendor have extended their partnership to last until at least 2037.
JP Morgan touts DLT, tokens for collateral management
Distributed-ledger technology could make moving non-cash collateral more efficient, said managing director Toks Oyebode during an Isda conference on Thursday.
Waters Wrap: The changing definition and perception of blockchain
Anthony says that questions of definition and perception are killing DLT projects in the capital markets—oh, and a lack of proven implementations.
BlackRock to integrate Aladdin and Preqin to create new private markets platform
CEO Larry Fink calls combining the two platforms “maybe the biggest opportunity in 10 years.”
Ace high or busted flush? Digital Asset’s mixed fortunes mirror DLT adversity
The vendor hoped to remodel post-trade using blockchain technology—and it still might—but its bumpy progress raises questions over the future of DLT in finance.
This Week: BlackRock/Preqin, Trading Technologies, FIA Tech and more
A summary of some of the past week’s financial technology news.
Adaptive’s Aeron goes live on Microsoft Azure Marketplace
The messaging software used for building bespoke trading platforms is now available on Microsoft’s marketplace, making it accessible through major cloud providers.