e-Forex July 22
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With Neill Penney, Group Head of FX at LSEG<br />
of their counterparties. There is less<br />
administrative work so it’s much<br />
easier to onboard. Credit is used<br />
more efficiently and accurately<br />
because counterparties don’t need<br />
to over-allocate truly available credit<br />
across those multiple lines, as they<br />
do now.<br />
THE E-FOREX INTERVIEW<br />
FXall is a completely flexible trading platform that gives seamless access to rich data and smart tools<br />
to build a better foreign exchange cleared only. This means all trades on<br />
market.<br />
the NDF platform will be cleared via<br />
its integration into <strong>Forex</strong>Clear. We<br />
NDF trading in Asia is currently underserved<br />
in terms of venue providers. for the industry. While electronic<br />
believe this is a genuine step forward<br />
Meanwhile, we already have a large trading is valuable and clearing is<br />
presence in Asia and a large desktop valuable, until now they’ve been<br />
franchise, which is why many of our separate processes. The addition of<br />
customers asked us to provide our clearing into the trading venue itself<br />
own solution for NDF trading. So delivers a cleaner venue in terms<br />
we’re particularly excited that with of improved liquidity and improved<br />
the FX technology renewal now credit efficiency.<br />
taking place under LSEG’s ownership,<br />
we have the ability to step in and It becomes easier for customers<br />
serve this part of the market with to onboard to the venue as they<br />
the launch of our NDF Matching only need to put into the venue<br />
platform.<br />
the credit they have with their<br />
clearing broker, compared with the<br />
An important part of our core<br />
traditional requirement of setting<br />
offering is that this solution will be up individual credit lines with each<br />
Transparency is also improved: an<br />
order that goes into NDF Matching<br />
will be visible and available to all<br />
market participants. Matching plays<br />
an important role in helping price<br />
discovery across the industry, and it<br />
becomes even more valuable in this<br />
case because everybody sees exactly<br />
the same market, without filtering<br />
due to credit considerations.<br />
A final advantage is that the cost of<br />
clearing can be built into the bid-ask<br />
spread. This means customers will<br />
have a clearer sense of the total cost<br />
to execute and clear than previously.<br />
Credit in the FX industry has<br />
traditionally been under-priced and<br />
clearing helps the industry fix this.<br />
NDF Matching is genuinely innovative:<br />
there is no other cleared NDF<br />
platform by a major infrastructure<br />
provider in the FX market.<br />
Once the NDF venue is live in Asia,<br />
we will start offering other trading<br />
capabilities from Singapore. We<br />
will be moving certain pairs in Spot<br />
Matching, as well as certain pairs in<br />
Forwards Matching, into Singapore<br />
at the right time. We will also move<br />
FX Price Stream to Singapore from its<br />
current location in Tokyo.<br />
What plans does LSEG have for<br />
re-platforming its FX venues onto<br />
its core technology stack and what<br />
benefits will that bring?<br />
Our clients are able to access greater liquidity and manage their risk with FX Matching<br />
At the heart of LSEG’s commitment to<br />
the FX industry is the re-platforming<br />
of our FX venues onto the same<br />
technology that LSEG uses to drive<br />
the London Stock Exchange and<br />
44 JULY 20<strong>22</strong> e-FOREX
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