FXSpotStream launched their FX aggregation service in the US with six-member banks: Bank of America Merrill Lynch, Citigroup Inc (C), Commerzbank AG (CRZBY), Goldman Sachs Group Inc (GS), HSBC Holdings PLC (HBC) and JPMorgan Chase Co.
FXSpotStream, a subsidiary of LiquidityMatch LLC, will provide clients with liquidity and facilitate communication between the banks involved. FXSpotStream said it plans to launch the service from its hosted sites in Europe in the second quarter of 2012 and in Asia in the third quarter.
The banks will all serve as liquidity providers for clients. The service is aimed as a market utility rather than a solution, and as such, there are no broker fees for either the bank or the client. Although several commentators feel that this cannot continue for long.
The existing FXall and 360T FX portals are well-established and also provide forwards and NDF pricing. FXSpotStream will have to, like all portals, expand their instrument coverage to compete. Competition in trading portals is increasing and there will be another major multi-instrument portal launching before the year end. This increased competition can only be good news for corporate treasury departments.