19th Nov 2015 09:37
LONDON (Alliance News) - EBS BrokerTec, which is ICAP PLC's electronic foreign exchange and fixed income business, and Singapore Exchange on Thursday revealed they will collaborate to grow the Asian currency futures market and take advantage of the "exponential" growth in trading volumes they have seen.
The deal will result in the launch of to launch of SGX listed FX block futures on EBS BrokerTec's FX central limit order book, EBS Market, a venue for electronically traded currencies.
The pair said that the deal will enable market participants to access a liquidity pool for trading Asian spot, non-deliverable forwards and futures instruments via the EBS Market.
"Our partnership will allow us to develop new business opportunities and product offerings, and significantly strengthen liquidity in the FX OTC and futures markets," ICAP Chief Executive Michael Spencer said in a statement.
SGX Chief Loh Boon Chye said the initiative should be seen as a sign of commitment to "innovate and grow" the Asian currency futures market.
"It will also provide a mutually beneficial market for both our customers given the strength of EBS's network and SGX's risk management and clearing tools. We look forward to further collaboration with ICAP and EBS BrokerTec to develop new products and services that complement and grow the FX OTC [over-the-counter] and futures markets in Asia," Loh Boon Chye said.
The listed FX block futures will be available on EBS Market in the early part of the second quarter of 2016, subject to regulatory approval. Trades will be cleared through SGX's trade registration system, Titan OTC.
ICAP and SGX said there are two main benefits from the collaboration: "EBS BrokerTec's direct connectivity into Titan OTC will provide customers with automated straight-through-processing for trades matched electronically on EBS Market and SGX's central clearing will provide increased capital efficiency."
The pair said the deal is the first initiative between EBS BrokerTec and SGX under a long-term strategic partnership, and that "further opportunities" will be announced in due course.
Shares in ICAP were up 0.6% at 514.50 pence on Thursday morning.
By Samuel Agini; [email protected]; @samuelagini
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