INTL FCStone Inc. (NASDAQ: INTL) revealed that the expansion of its FXePrice platform, by its UK subsidiary, has attracted 52 users working for 17 institutions who trade 12 unique exotic currencies pairs for 24 hours each day. The FXePrice system enables banks to send their FX rates directly to the company’s Global Payments Division’s (IFL), which allows the company to complete deals on the system whether the market is open or closed.
The FXePrice platform was released in June 2018 to a small group of the company’s global network of over 350 correspondent banks, which are all located in emerging market countries. The success of this program has made the company decide to initiate a full rollout of the platform, which is free, to its full network of counterparties by the end of this year. INTL FCStone’s Global Payments Division has a distributed network of correspondent banks that helps it maintain a secure, efficient and transparent system of cross-border payments in countries where there is little transparency.
A SVP at INTL FCStone Ltd’s Global Payments Division, Francois Beau Yon de Jonage said:
Since introducing FXePrice, we have received very positive feedback from members from our trusted global network of more than 350 correspondent banks. In emerging markets, the traditional methods of price discovery lack transparency and are often unreliable as price discovery via phone, email or messaging makes it difficult to accurately streamline local currency rates. Through our robust network, we are well-positioned to provide a single, innovative platform to local banks, and look forward to a full rollout to our global network this year.
The FXePrice platform allows correspondent banks to input the live prices of local currencies into the IFL electronically giving users access to live streaming foreign exchange prices, which minimizes latency and guarantees efficiency as it is integrates with counterparties’ straight-through-processing (STP) systems. The platform allows full automation of the mostly manual process of FX price discovery in most emerging markets by facilitating immediate electronic discovery of prices through both its streaming and request-for-quote (RFQ) functions.
Another SVP at INTL FCStone Ltd’s Global Payments Division, Sameer Jaggi added:
We are very excited by this new offering. As banks, particularly in markets like Africa, seek to improve their levels of transparency and strengthen their dealing communication channels, FXePrice will become an increasingly important and relevant dealing platform.
The platform minimizes the time and cost of executing forex price discovery, while also eradicating most of the errors associated with manual price discovery. The FXePrice platform facilitates the submission of prices by banks on its network during hours when markets are closed enabling them to monitor flows that reveal overnight interest, which allows them to participate effectively in the global financial markets.
The correspondent banks that participated in the initial release gave the following feedback:
Carlos Velasco, Vice President FX Trading, Banco Bisa in Bolivia, said:
The INTL FCStone platform is a totally user-friendly tool, with good technical support when there is a problem with the user or passwords… I am sure that in the future, with greater volatility it will be a very helpful tool to quote INTL FCStone.
Ariel Ramírez, Treasury and FX Trading, BCP Bolivia, explained:
The platform is totally friendly, understandable, easy to use, and it is quite useful to be able to download all the trade information from the platform.
Edson Jorge, International Finance Department, Banco Economico in Angola, pointed out:
It is a very practical platform and promises to revolutionize the business of buying and selling currencies.
Bo Kronback, Head of Treasury at Banco Comercial Angolano in Angola, shared:
The FXePrice is a very handy tool for our business with INTL FCStone. It’s easy to operate in terms of input and changes, as well as practical with the split in quotation size. The possibility to export to Excel secures a fast integration with the dealers’ positions.
Murielle Magayane, Chief Dealer, Bank of Africa Uganda, concluded:
[it’s] very easy to use and reliable.