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Citi announces Asia FX trading 'engine'

Citi announces Asia FX trading ‘engine’

(13 March 2019 - Singapore) Citi has announced plans to help boost liquidity in foreign exchange (FX) markets in Southeast Asia with a Singapore trading engine, the group’s fourth such centre of operations after London, New York and Tokyo.

The FX engine, structured in-house by Citi, includes a proprietary pricing and hedging algorithm. It will initially offer 23 spot currencies (G10 and 13 deliverable EM currencies), as well as two precious metals (gold and silver). Citi plans to establish an electronic FX pricing and trading engine in Singapore with support from the Monetary Authority of Singapore (MAS) to boost liquidity in the region.

The global bank said the platform is expected to go live in the final quarter of 2019, further boosting the development of Singapore as an Asian liquidity hub. The planned expansion is expected to inject more liquidity into Singapore’s currency market, which recorded $517 billion in daily average trading volume in 2016 -- higher than Hong Kong and Japan, according to a triennial central bank survey by the Bank for International Settlements (BIS).

Citi stated that it was looking forward to boosting the city’s FX trading ecosystem, “particularly as the growth of electronic trading accelerates for both spot and NDF currencies,” said Itay Tuchman, Citi’s global head of FX Trading.

“The expansion of our FX trading engine will also lead to a vast improvement in latency for our clients in Singapore and across much of Asia Pacific, who prior to this would connect via Tokyo or one of our trading engines outside of the region,” said Stuart Staley, Citi’s Asia Pacific head of markets and securities services.

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