Refinitiv supports the ongoing shift in the FX markets to trade more volume in FX Swaps electronically by launching the Forwards Matching API solution, enabling automated access to the market leading Forwards Matching MTF venue.
Traders use Forwards Matching across a large and wide set of globally distributed clients and support hundreds of billions of dollars in trading a day.
There is strong market demand in FX Swaps electronic trading that could improve the efficiency of eHedging flows and positions especially given the recent growth in FX Swaps trades.
The Forwards Matching API will further advance efficiency in trading and the management of costs for Refinitiv clients. APIs availability in FX Swaps will also benefit customers with additional transparency on data and quick access to liquidity bringing greater efficiency across the trading workflow.
The Forwards Matching is regulated by Central Bank or Ireland as part of Refinitiv’s MTF and it fully supports MiFID II execution, monitoring and reporting requirements. Clients can trade FX Swaps on the MTF and FX Spot off the MTF on the Matching platform.
Paul Clarke, Head of FX Venues, Refinitiv said:
With the move towards electronification of FX Swaps trading comes the need and the opportunities for more innovative solutions to drive efficiencies without sacrificing liquidity and effective trade execution. This is especially true in the ongoing market where the trading workflow has changed considerably. Matching Forwards API delivers on this need. With access to over 300 active client sites trading on the market leading venue for FX Swaps, Matching Forwards API will help achieve greater efficiency for FX Trading.
FX swaps have had significant growth in the FX market. In the 2019 BIS Triennial Survey FX Swaps made 49% of the overall FX volume and increased in volume by 35% between 2016 and 2019 from $2.377 trillion to $3.2 trillion. A Greenwich Associates study reported that the deliverable forwards and swaps traded electronically in 2018 and 2019 were 77% and 75%, respectively.
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