THETRADETECHFX DAILY news update
FOREIGN EXCHANGE
Bloomberg unveils enhancement to FX execution offering in wake of T + 1
SERVICE WILL ALLOW USERS TO SEND FX ORDERS INTO EXECUTING COUNTERPARTS WITHOUT BEING PRESENT IN SAID TIME ZONE ; INITIAL LAUNCH EXTENDS TO CURRENCIES INCLUDING USD , GBP , HKD , EUR , AND JPY .
Bloomberg Index Services has unveiled its Bloomberg FX Fixings ( BFIX ) offering , the first benchmark on a value T + 1 basis in the market . The service will allow users to send FX orders into executing counterparts without being present in the time zone in question . Though sell-side banks offer this service via their forwards desk , the BFIX T + 1 benchmark allows for a minimised impact on banks ’ credit facilities when done at scale , according to Bloomberg . “ While sell-side banks can currently offer this service through forwards desks on a T + 1 basis taking opposite risk from the spot desk on a T + 2 basis , the forwards desk inherits a tom next FX swap which may ultimately impact banks ’ credit facilities when done in sizable volumes ,” said Bloomberg . The initial launch extends to 20 deliverable currencies globally , including USD , GBP , HKD , EUR , and JPY among others . Client auto-routing ticketing is set to be facilitated by Bloomberg FXGO and users have been directed to reach out for details on how to route a new BFIX T + 1 order .
TECHNOLOGY
FairXchange unveils new AIdriven FX liquidity alerting tool
CALLED HORIZON SENTINEL , THE TOOL CAN AUTOMATICALLY NOTIFY FIRMS OF SIGNIFICANT CHANGES IN TRANSACTION COSTS OR NOTABLE CHANGES IN TRADING ACTIVITY FROM A PARTICULAR SET OF CLIENTS .
FairXchange has launched a new AI-driven alerting tool aimed at enhancing FX liquidity data analytics and improving the efficacy of trading processes .
Specifically , the Horizon Sentinel tool identifies commercially relevant changes to the liquidity of financial institutions as well as counterparty activity as soon as they occur , effectively reducing the time firms need to spend analysing FX liquidity data .
Guy Hopkins , founder and chief executive of FairXchange , said : “ In high complexity trading environments , it is becoming progressively harder for people to keep on top of all the recent developments . Sentinel watches your business for you and provides timely , automated notification of important changes as soon as they occur . This improves productivity , substantially reduces opportunity cost and allows clients to focus on what adds the most value both to their own firm and their counterparties .”
He added that during Sentinel ’ s testing period there was an “ overwhelmingly positive ” response .
Horizon Sentinel can automatically notify firms ’ compliance and management teams of significant changes in transaction costs or notable changes in trading activity from a particular set of clients .
The tool is available as an optional module in Horizon , FairXchange ’ s data analytics platform .
Wayne Roworth , global head of FX at Sucden Financial , an active user of Sentinel ’ s AI tool over several months , said : “ We have a complex trading business with many important counterparties , both on the liquidity provider and client side . FairXchange ’ s AI driven alerting empowers our team to keep abreast of every change in the business .
“[…] The dialogue that this data facilitates , and the speed with which we can act upon it , has resulted in numerous improvements to our liquidity that have allowed us to increase our client volumes and associated revenues .”
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