FXSpotStream, a wholly owned subsidiary of LiquidityMatch, today announced the launch of a multibank Spot FX price aggregation service from its initial hosting site in the U.S. Liquidity providers of FXSpotStream include: BofA Merrill Lynch, Citi, Commerzbank AG, Goldman Sachs, HSBC and JP Morgan Chase.
FXSpotStream will provide a multibank FX aggregation service to clients for the purpose of executing Spot FX trades. Banks connected to FXSpotStream will serve as liquidity providers to clients. FXSpotStream will function as a market utility, providing the infrastructure that will facilitate the multibank API and associated routing mechanism to route trades from clients to liquidity providers. There will be no brokerage fees for the client or liquidity banks.
The majority of the LiquidityMatch shareholders are also liquidity providing banks of FXSpotStream.
Alan F. Schwarz, CEO, stated: “FXSpotStream provides banks and clients the ability to communicate bilaterally using a solution that does not interfere with the transaction, is transparent and eliminates the cost of execution. Clients access a single API from co-location sites in New York, London and Tokyo and have the potential to communicate with all liquidity providing banks connected to the FXSpotStream solution.”
“We are very pleased to be involved in bringing to market a solution that will allow clients a more efficient, less expensive way to deal directly with Citi and all other FX banks connected to the FXSpotStream solution,” added Fergal Walsh, Co-Head of FX eTrading at Citi.
Richard Anthony, Global Head of FX eRisk, GFX at HSBC, stated “Any solution that allows us to reduce transaction costs for clients and liquidity providing banks is a welcome addition to the market place.“
FXSpotStream’s technology solution is supported by smartTrade Technologies. Harry Gozlan, CEO and Founder of smartTrade said: “We are extremely pleased to have been selected by FXSpotStream and the consortium to provide the end-to-end technology solution needed for its clients to communicate with each other in a fast, reliable and transparent manner. Our technology solutions are used by some of the largest FX market participants and banks in the market and have been proven for functionality, scalability and redundancy.”
Following the U.S. launch, FXSpotStream plans to launch the solution from its hosted sites in Europe in Q2 and Asia in Q3 of this year.