THETRADETECHFX DAILY news update
POST-TRADE
Euroclear and HSBC launch automated FX service ahead of T + 1 shift
AUTOFX WILL EMBED FX EXECUTION DIRECTLY INTO THE SETTLEMENT PROCESS, AUTOMATICALLY SOURCING THE CURRENCY NEEDED TO SETTLE A TRADE.
Euroclear and HSBC have partnered to launch AutoFX, an automated FX service for Euroclear’ s clients ahead of Europe and the UK’ s upcoming transition to T + 1 settlement.
Specifically, the partnership is designed to reduce operational risk and support settlement certainty as the region moves to a shorter settlement cycle.
Sebastien Danloy, chief business officer at Euroclear, said:“ The move to T + 1 is one of the most significant changes to Europe’ s post-trade landscape in decades. While it will deliver important efficiency gains for the market, it also requires firms to modernise and automate their processes.
“ By partnering with HSBC, we are extending our settlement offering with integrated FX services that help clients improve settlement certainty and adapt to a faster settlement environment.”
The service combines Euroclear’ s settlement infrastructure with HSBC’ s FX pricing, conversion and liquidity capabilities and is due to go live in early 2027, ahead of the T + 1 deadline.
Europe and the UK are expected to transition to T + 1 on 11 October 2027.
Vincent Bonamy, head of global FX services, HSBC, said:“ This first-of-its-kind FX service for Euroclear will help pave the way for enhanced FX solutions across our industry on a global scale.”
The compressed window between trade execution and settlement is expected to improve market efficiency, reduce counterparty risk and strengthen resilience – but it will also force firms to complete funding, liquidity and FX activity faster, adding pressure for greater automation across the settlement process.
TECHNOLOGY
Marex boosts FX capabilities through new aggregated liquidity platform
THE NEW OFFERING LEVERAGES AN AGGREGATED PRICING ENGINE TO PROVIDE CLIENTS WITH MULTI-DEALER FX LIQUIDITY ACCESS THROUGH A SINGLE PRIME BROKERAGE RELATIONSHIP.
Massimo Labella
Marex has expanded its prime services footprint with the launch of a new proprietary aggregated liquidity platform.
The new solution will build out the firm’ s current FX capabilities and provides clients such as hedge funds and asset managers with access to multi-dealer FX liquidity through a single global prime brokerage relationship.
A key component of the platform is an aggregated pricing engine which consolidates live streams across tier one and specialist liquidity providers into a single executable price.
Through this, Marex aims to deliver enhanced liquidity, competitive pricing, streamlined execution and workflow integration for its clients, as well as anonymous liquidity pool access.
Massimo Labella, co-head of international prime brokerage and outsourced trading, Marex, said:“ This offering strengthens our position as a cross-asset prime brokerage partner for institutional clients seeking liquidity, capital efficiency and operational simplicity.
“ As with the expansion of our swaps capabilities and the addition of FX to our outsourced trading offering, it was developed in response to client demand, reflecting our focus on building solutions that deliver tangible value for clients.”
The offering also removes the need for multiple bilateral relationships and will allow clients to leverage improved capital usage and balance sheet efficiency through portfolio-level cross margining.
On a wider scale, the new platform is set to enable integrated reporting and workflow connectivity across the firm’ s entire equity, fixed income, futures and derivatives infrastructure.
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