THETRADETECHFX DAILY news update
BUY-SIDE
LoopFX has completed the first bankfacilitated peer-to-peer FX trades within State Street’ s GlobalLINK FX Connect platform, matched via RBC Capital Markets.
The move represents an industry first, marking the first instance that asset managers can match trades directly with each other, while still operating within their existing execution channels spanning bank relationships, workflows and documentation.
Through this offering, asset managers will be able to leverage an additional source of liquidity, while maintaining the bank’ s central transaction role and without requiring any development work.
Blair Hawthorne, chief executive and founder of LoopFX, said:“ Asset managers matching with other asset managers has long been discussed – and now it is a reality. With no changes to legal documentation, no changes to existing workflow and by positioning banks at the heart of every trade, this is a groundbreaking achievement for the market.
“ Our focus remains on supporting our clients. Right now, that means embedding LoopFX into automated execution workflows, so the LoopFX dark pool is checked ahead of the lit market automatically.”
Hawthorne confirmed that the firm is currently engaging with clients to launch new liquidity solutions, with further developments
LoopFX launches peerto-peer FX trading
THE TRADES ARE FACILITATED WITHIN STATE STREET’ S GLOBALLINK FX CONNECT PLATFORM; SOLUTION ALLOWS ASSET MANAGERS TO DIRECTLY MATCH TRADES WITH EACH OTHER WHILE STILL OPERATING WITHIN THEIR EXISTING EXECUTION CHANNELS.
Blair Hawthorne set to come into play later this year. The solution is also set to be rolled out across
LoopFX’ s client base later in July.
“ This development represents a practical step forward in the development of institutional FX liquidity,” said Greg Fortuna, senior managing director and head of GlobalLINK at State Street.
“ By enabling bank intermediated peer to peer matching within the existing FX Connect workflow, LoopFX is helping us expand the range of liquidity options available to clients while preserving the operational, credit and relationship frameworks they rely on today. We see peer to peer models as an emerging category and expect these capabilities to develop across multiple liquidity venues in response to growing client demand.”
DATA
International Swaps and Derivatives Association builds out offering to include US-reported FX derivatives data
THE MOVE IS EXPECTED TO ENHANCE TRANSPARENCY IN THE OTC DERIVATIVES MARKET AND WILL ALLOW USERS TO IDENTIFY MARKET TRENDS AND COMPARE ACTIVITY ACROSS VARIOUS MARKET SEGMENTS.
The International Swaps and Derivatives Association( ISDA) has expanded its SwapsInfo offering to include data on USreported FX derivatives.
The move is expected to boost transparency in the OTC derivatives market, by providing insights into trading activity for FX forwards, swaps and options.
The enhancement is set to support users in identifying market trends and comparing activity across different market segments, by enabling data analysis based off product type, currency pair, execution method, tenor and clearing status.
Olga Roman, ISDA head of research, commented:“ SwapsInfo was developed to make derivatives market data more accessible and easier to analyse.
“ The addition of FX derivatives broadens the scope of the platform and gives market participants and policymakers another valuable source of information for analysing activity in OTC derivatives markets.”
The move expands SwapsInfo’ s current data suite, which spans interest rate derivatives and credit derivatives reported in the EU, UK and US.
The new FX dataset also covers transactions publicly reported to the Depository Trust & Clearing Corporation( DTCC) swaps data repository, under US Commodity Futures Trading Commission( CFTC) regulations.
FX derivatives have been a key area of focus for ISDA so far this year, and in March, the trade associated published a revised set of standard definitions for FX derivatives transactions, in collaboration with EMTA.
The new definitions will come into play from 22 November 2027 and replace the 1998 FX and Currency Option Definitions as the market standard for these transactions.
Olga Roman
4 THETRADETECHFX DAILY