The London Stock Exchange Group’s (LSEG) fully cleared non-deliverable forwards (NDF) matching platform has gone live.
Based in Singapore and with the backing of the Monetary Authority of Singapore (MAS) the platform is the first phase of LSEG’s plans to implement NDF, spot matching and streaming relationship venues in Asia.
It also represents the first stage of LSEG re-platforming its FX venues to its core technology, with the view of improving performance and functionality for customers. The exchange group confirmed the launch in May last year, with plans for a phased roll-out.
“It [NDF Matching venue] showcases a several of improvements to our FX capabilities. It’s the first time we have supported NDFs in Matching,” LSEG’s head of FX Neill Penney told The TRADE in a recent Fireside Friday interview.
“It’s our first venue in Asia. It’s got clearing built into the execution mechanics. It’s the first time we’re bringing together our FX post-trade expertise from LCH ForexClear and our execution expertise from Matching and FXall.”
NDFs are a growing part of the FX market, with limited customer options when it comes to execution on an order book. And LSEG confirmed this launch reflects this increased client demand for greater support in this sphere.
Read more – Fireside Friday with… LSEG’s Neill Penney and Bart Joris
“There is also a lot of interest from customers in the cleared execution part of the venue which should result in improved liquidity, more efficient use of credit, and reduced administrative overheads,” Penney told The TRADE.
“In the wider context of our technology transformation, another benefit is the ability to deliver and rollout the new technology for a smaller venue than our core spot and forwards Matching platforms.”
The exchange laid out plans to greatly expand its FX offering in the second half of this year as part of its H1 results with the new FX matching platform and a new artificial intelligence-based dealer tool.
The new tool will “change the face of FX trading,” by replacing its current long standing dealing product with a new one including a cloud-based FX trading environment, AI technology that populates a trade ticket in real-time based on trader chat and integrated with Workspace, the exchange said in its results.