US investment bank Goldman Sachs is set to build an electronic foreign exchange trading and pricing engine in Singapore with the support of the Monetary Authority of Singapore (MAS).
The FX trading engine is expected to go live in the first quarter of next year across deliverable and non-deliverable currencies, Goldman Sachs confirmed.
It marks the fourth FX pricing engine that the institution operates, including those in London, Tokyo, and New York, and will aim to deliver improved low latency execution for clients.
“Goldman Sachs is at the forefront of innovation in Asian currencies,” said global head of electronic FX distribution at Goldman Sachs, David Wilkins. “This is particularly true in non-deliverable forwards (NDFs) where we maintain a market leading position, having been the first bank to develop an NDF execution algo for our clients. It makes perfect sense for us to be part of this initiative and to further develop the FX market ecosystem in Singapore, and Asia as a whole.”
The plans are part of the Monetary Authority of Singapore’s (MAS) strategy to boost Singapore’s status as the leading FX trading centre in Asia Pacific. Under the initiative, various major financial institutions have rolled out FX trading systems in the region including JP Morgan, BNP Paribas, BNY Mellon, Deutsche Bank, and Barclays.
“Goldman Sachs’ decision to set up its regional FX trading engine in Singapore and launch the next generation NDF execution algo will enhance the depth and sophistication of the Asian FX market,” said executive director for financial markets development at MAS, Gillian Tan.
“We welcome this partnership with Goldman Sachs, which is aligned with our strategy to grow a critical mass of players and liquidity for APAC buy-side players to gain efficient pricing and execution, and strengthen Singapore’s standing as a global FX centre.”