Thomson Reuters and the EBS spot trading foreign exchange (FX) market from the ICAP brokerage, which provides liquidity and price discovery and execution services to hedgers and financial market participants, have joined up to provide blended FX fixing data every 30 minutes, instead of every hour, over the Eikon platform. The aim is deliver an accurate picture of live-traded FX prices. More partners are likely to join the service later.
The merging of the FX information from Thomson Reuters and ICAP’s EBS 30-minute FX fixing data will be blended using a proprietary algorithm which will ensure that all traded liquidity across Thomson Reuters Matching and the EBS Market platform is used in the fixing calculations. According to the two partners this will deliver maximum transparency to FX market participants.
The algorithm is already live on Thomson Reuters Eikon platform, as this struggles to match Bloomberg’s terminal, and will be available on the EBS Market platform later this quarter. Previously the 30-minute fixed rates on offer were based solely on the platform that had the primary liquidity pool in each currency. The new blended offering has been developed to promote greater market transparency across the Thomson Reuters and EBS platforms, meeting increasing global demand for more timely and precise reference data information based on real-time market transactions. It will also aid regulatory reporting, transparency and best execution requirements.
“This collaboration between Thomson Reuters and EBS is a great example of the industry working together to improve the overall trading experience for the benefit of all market participants,” said Phil Weisberg, global head of FX at Thomson Reuters. “By blending Thomson Reuters and EBS sources for our 30-minute FX fixings we are ensuring that maximum liquidity has been calculated within each currency fixing and therefore providing maximum transparency for the marketplace as a whole.”
The fixing services were initially created in 2006 upon the request of the Bank of England (BoE), following its retirement from the publication of FX rates. Daily benchmarking at 11am and 4pm GMT for GBP, JPY, CHF, AUD, CAD and EUR were initially provided by both Thomson Reuters and EBS, and from March 2011 the services were expanded to deliver fixings every 30 minutes. The services are now becoming even more integrated.
“The FX industry is focused on ensuring a fair, robust and transparent marketplace and is continuously evolving and innovating to push this agenda forward over many fronts,” said Gil Mandelzis, chief executive officer (CEO) at EBS. “This is another grass roots initiative that will improve current practices significantly for the benefit of all market participants. EBS is pleased to lead such changes, together with Thomson Reuters and in partnership with other market participants.”
The EBS business is at the heart of London-based global spot FX trading and remains a core source of genuine, executable spot FX liquidity for professional trading counterparties in all market conditions. The platform delivers impartial and effective access to spot FX, precious metals and Non-Deliverable Forward (NDF) traders globally and supports a wide range of FX trading strategies.