EBS BrokerTec and the Singapore Exchange (SGX) have signed a collaboration agreement to launch SGX FX block futures in the EBS market.
EBS BrokerTec, the FX and fixed-income business of ICAP, will use its venue for e-trading currencies for FX trading, after both businesses saw growth in the Asian trading volumes.
The collaboration is intended to bridge over-the-counter (OTC) and futures market, allowed market participants to access an enhanced liquidity pool for trading Asian spot and futures instruments on the EBS market.
Trades will be cleared through the SGC trade registration system, Titan OTC, offering customers automated straight-through processing for trades, which are matched electronically on the EBS market. Central clearing through SGX also means increased capital efficiency.
Michael Spencer, group CEO of ICAP and chairman of EBS BrokerTec, said: “Our partnership will allow us to develop new business opportunities and product offerings, and significantly strengthen liquidity in the FX OTC and futures markets. This is an exciting opportunity for ICAP, our customers and for the financial markets in Asia and we look forward to the launch next year.”
Loh Boon Chye, CEO of SGX, added: “This collaboration is a sign of our commitment to innovate and grow the Asian currency futures market. It will also provide a mutually beneficial market for both our customers, given the strength of EBS’s network and SGX’s risk management and clearing tools.”
“We look forward to further collaboration with ICAP and EBS BrokerTec to develop new products and services that complement and grow the FX OTC and futures markets in Asia.”
The partnership is part of a long-term strategic partnership between EBS BrokerTec and SGX. Listed FX block futures should be available to trade on the EBS market in Q2 2016, subject to regulatory approval.
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