LeapRate Exclusive: CFH Clearing Focuses on Russian Expansion


British FX liquidity and technology provider CFH Clearing has unveiled plans to double its business from Russia by the end of 2014 following a significant rise in interest from major banks and brokers in the region since the launch of its ClearVision suite of products.

CFH Clearing’s Vice President, Dr. Alex Iakobachvili, has returned from The St Petersburg International Forum SPIEF 2014, a high profile event in which President Vladimir Putin discussed global economic and financial issues facing Russia and the emerging markets with selected business and political leaders from across the world.

According to CFH, the decision was taken to invite the company due to its growth in the region and further growth potential following the launch of ClearVision, which offers a universal tool for FX spot transactions to any regulated institution in Russia. CFH Clearing has also built primary partnerships with Russia’s leading credit institutions.

Dr. Alex Iakobachvili commented: “It was an honour for CFH Clearing to be invited to this prestigious event and encouraging to see at the Forum that even in the current sanctions environment, Russian officials signed business agreements for over 11 billion US dollars.

“We see huge growth opportunities for CFH Clearing in Russia. Despite the crisis that has affected most of the world, Russia’s economy continues to grow. The country’s foreign debt is quite low compared to Eurozone countries (below 50 billion USD) and its economy has been labelled as the eighth-largest in the world. Some global financial institutions describe Russia’s economic performance as “remarkable” and “awesome”. Russia is no longer “just an oil and gas economy” – trading, construction and financial services are amongst rapidly growing sectors, too. The Russian retail FX spot market is large and growing fast. These trends are attracting massive foreign investment.”

Growth Plans

CFH Clearing already has contractual relationships with some of the main Russian foreign exchange market operators, some with over 250 offices across Russia. LeapRate has consistently reported that the demand for ruble liquidity has increased dramatically during the past year as Russia’s venues and electronic trading participants focus on taking Russia onto the world stage, as well as the interest from Russian participants in gaining low-latency access to Western venues and liquidity with companies such as i-Xcellerate and TMX Atrium providing high-speed connectivity and database hosting to Europe and North America from Moscow.

In the case of CFH’s stepping up of its focus on Russia, the company is increasing its investment in the region and has appointed three new employees to focus on the Russian market, joining its Russian speaking IT technology and sales/support teams.

CFH has plans to extend its pool of Rouble Liquidity Providers on the CFH product range and is actively in discussion with several leading Russian banks.

According to Dr. Alex Iakobachvili, many onshore financial institutions are looking for technology to enter the retail market in Russia. He believes that CFH’s ClearVision suite of products and white label solutions are the ideal fit for the most demanding requirements.

Dr. Iakobachvili concludes, “Russian banks appreciate our efforts and choose CFH because of our fully automated leading technology; greatest liquidity; no conflict of interest; advanced STP and integration options, safe back-up systems and support.

“Our plans very much correlate with the clear message from Russian President Mr. Vladimir Putin’s speech which he made at the end of his briefing at the Forum: “Work with us – and we will provide any possible help”.”

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LeapRate Exclusive: CFH Clearing Focuses on Russian Expansion

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