As we reported two months ago as being in the planning stages, ICAP-EBS today confirmed that it is going to half-pip pricing (from decimal pricing) for most major FX pairs. The changes will be effective as of Monday, September 17.
This appears to be the first major move to be made by newly-installed EBS CEO Gil Mandelzis, to repair EBS’s relationship with its core group of bank clients, while at the same time making it more difficult for high frequency traders to maintain a trading advantage.
As we reported recently, EBS seems to have lost market share to other Forex ECNs, with other new startups such as Tradition’s traFXpure and the FXCM-Credit Suisse joint venture FastMatch taking clear aim at EBS’s market position.
The new half-pip pricing will apply to the EURUSD, AUDUSD, USDJPY, GBPUSD, USDCHF and USDCAD pairs (among others), while decimal pip pricing will remain on the EURCHF, USDHKD and USDSGD pairs.
For more on the global FX market see the LeapRate-Dow Jones Forex Industry Report.