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More transparent and efficient FX in emerging markets

INTL FCStone Ltd’s Global Payments Division (IFL), the specialists in currencies for emerging markets, has introduced FXePrice, a proprietary web-based platform allowing IFL local currency liquidity providers to streamline executable prices in 140 currencies and 175 countries. The Company has released the platform to some members of its global network of more than 300 correspondent banks, to obtain feedback and incorporate recommendations. A full roll out to its entire network of counterparties is planned for later in 2018. FXePrice will be free of charge for banks in the IFL network.

Streaming price for all currencies

With FXePrice, correspondent banks will be able to feed local currency live prices electronically to IFL replacing the curent model in which the FX price discovery in the developing world has occurred manually via phone, email or messaging. Instead the new FXePrice platform will enable local banks in these 175 countries to leave a price with INTl FCStone for defined limited tickets, e.g. trading limit of $25K and a total trading limit of $250k as shown in the Daily Rates Workflow diagram below:

Source & Copyright©2018 -  INTL FCStone 

The Company will have the capability to execute a large number of transactions instantaneously with multiple counterparties.  FXePrice automates this process and facilitates instant electronic price discovery via both streaming and request-for-quote (RFQ) functionality, which significantly reduces the time and cost of execution, as well as errors associated with manual processes. 

Off-market hours prices

Critically, the platform allows banks on the IFL network to submit prices even during off-market hours for certain currencies, maximizing their abilities to capture flows by showing overnight interest and participate in the global marketplace

FXePrice users can stream foreign exchange prices through the web-based platform, which reduces latency and ensures efficiency by integrating with counterparties’ straight-through-processing (STP) systems. All prices posted on the platform, including after-hours prices, are executable and verifiable. 

Impact

The accurate pricing provided through the portal is especially valuable for the currencies used in the developing world, for which traditional methods of price discovery lack transparency and are often unreliable.

For the corporate treasurer there will be much greater transparency in the FX rates proposed by their lead banks and they will be able to see what the local banks were willing to bid for the FX requested. There can even be time stamping of the prices offered.

INTL FCStone don’t expect that the new FXePrice  will make a difference to the margins being charged, but it will dramatically improve the comfort for the corporate treasurer that the margin is based on the correct evidenceable rate.


CTMfile take: Trading in the emerging markets just got a lot more transparent and efficient.


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FX Management & Crypto
Buying & Selling FX

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