ICAP, a leading markets operator and provider of post trade risk mitigation and information services, reported today on the progress of its eFix Matching solution one year after launch. The result of a collaboration between EBS, ICAP’s market-leading electronic foreign exchange business and Global Broking, it enables customers to execute Fix interest electronically on the EBS Market platform. As well as providing anonymous access to a central pool of liquidity for the most liquid daily fixes, including the ECB 13:15 Fix, WMR 16:00 Fix, HSRA AUD/USD Fix and EMTA USD/RUB Fix, and improved global matching opportunities.

eFX Matching volumes and trading patterns

The average daily volume (ADV):

• has increased by more than 160% over the past year (May 2014-April 2015) 
• currently 25% approx. is now traded via API (Automated Programming Interface) as participants are increasingly automated in their execution of fixings, versus no automation a year ago. 

There has also been diversification of the currency pairs traded:

• at launch, EUR/USD accounted for 76% of eFix ADV but now accounts for 46% of volume
• ADV in pairs such as AUD/USD and GBP/USD continues to grow. 

There are now over 150 unique active participants, there has been an ecology shift in recent months towards earlier order submission to take advantage of the first-in-first-out eFix policy. This clears the risk pre calculation window, resulting in increased fill ratios and improved trader experience.

The sustained volume growth of eFix Matching, together with EBS Market’s global network and robust infrastructure, have positioned the solution as a fair and trusted ‘global utility’ for FX fix execution. Such a solution was recommended by the Financial Stability Board (FSB) in 2014 following its consultation on foreign exchange benchmarks to ensure a robust fix methodology and execution environment. 

Planned enhancements

ICAP say planned enhancements to eFix Matching later this year will further expand and strengthen the service’s functionality and value to the market.