(Bloomberg) — Citigroup Inc. Is planning to enroll in UBS AG with an electronic foreign exchange and pricing platform in Singapore, putting in systems to reinforce liquidity in Asia’s largest foreign exchange hub.
Singapore turns into the fourth FX trading engine region for Citi, which also has systems set up in Tokyo, New York, and London, the financial institution said on Monday.
“The enlargement of our FX buying and selling engine can even cause a good-sized development in latency for our clients in Singapore and across plenty of Asia Pacific, who before this will connect via Tokyo or one in every of our trading engines outside of the location,” Stuart Staley, Asia Pacific head of markets and securities services, stated in the declaration.
The facility, which is slated to go live in the fourth quarter, will aid 23 spot currencies, inclusive of all those inside the Group of Ten. The planned expansion is predicted to inject extra liquidity into Singapore’s currency marketplace, which recorded $517 billion in each day’s average trading volume in 2016 — higher than Hong Kong and Japan, in line with a triennial central bank survey of the Bank for International Settlements.
Citi’s device is also expected to guide thirteen deliverable emerging-market currencies. The engine will be built in residence and consists of a proprietary pricing and hedging set of rules through which clients can deal. In addition to currencies, the platform will permit the trading of gold and silver.
Citi is the 5th-biggest currency trading firm by way of marketplace proportion over the last 12 months, after the likes of JPMorgan and UBS, in line with a Euromoney Institutional Investor Plc survey.
