SGX CurrencyNode will be hosted in SG1. The platform will offer global banks, non-bank liquidity providers, brokers and institutional investors access to multiple sources of OTC FX liquidity anonymously through a single venue.
The platform currently streams liquidity for FX spot, precious metals and NDFs. It has plans to launch FX swaps and NDF spreads at a later date.
BNP Paribas and Deutsche Bank are the central prime brokers for SGX CurrencyNode.
With the launch of SGX CurrencyNode, SGX FX now offers complete OTC FX technology solutions that cater to the electronification and automation needs of market participants, while connecting FX market liquidity providers to SGX FX’s OTC and futures marketplace.
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SGX FX is Asia’s most comprehensive marketplace for global FX futures and over-the-counter (OTC) participants. Singapore is also the largest FX centre in the Asia Pacific (APAC) region and the third largest globally.
“This launch is an important step in enhancing the price discovery, efficiency and liquidity for Asian currencies,” says Lee Beng Hong, SGX Group’s head of fixed income, currencies and commodities.
“Our goal is to create a best-in-class FX marketplace that elevates market participants’ access to both OTC and listed futures, aggregating market liquidity and serving all their FX hedging and trading needs with strong efficiency and liquidity,” he adds. “Our FX offering is now complete with the launch of SGX CurrencyNode, and we thank MAS for its support and industry partners for their active participation.”
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Lim Cheng Khai, executive director, financial markets development department at MAS, welcomed the debut of SGX CurrencyNode, calling it a “key addition to Singapore’s vibrant FX e-trading ecosystem”.
“With global regulatory developments in margin requirements affecting the FX industry, there will be an increasing need for venues that seamlessly integrate OTC FX and listed futures. SGX Group’s investment in capabilities to meet this demand will further enhance Singapore’s value to market participants in the Asian timezone,” says Lim.
Shares in SGX closed 2 cents higher or 0.21% up at $9.55 on Sept 21.
