January 26, 2017
Australian banks are increasing their commitment to electronification, spurred on by aggressive competition from non-bank market makers – particularly for spot FX business.
FlexTrade’s Vinay Trivedi, Senior Vice President, Strategic Initiatives, recently spoke with Euromoney’s Paul Golden about how Australian Banks are reacting to the electronification of the FX market and competition from non-bank market makers.
From the article:
Vinay Trivedi, FlexTrade’s senior vice-president, strategic initiatives, suggests Australian banks have failed to capture a market share that reflects their status as natural Australian and New Zealand dollar market makers due to relatively weak eFX offerings.
He says Australian banks have only sharpened their focus on electronification in the past couple of years and that the impact has been much greater among business-to-business and business-to-consumer brokers. “Quite a few fund managers actively trade FX as an asset class, but accessing liquidity from banks is expensive,” says Trivedi.
“Australian FX brokers have filled this gap by using end-to-end FX technology solutions to give clients access to eFX liquidity at a lower cost, help manage credit (against cash collateral), provide risk-management tools and help generate clients statements.”