360T, the foreign exchange (forex) subsidiary of Deutsche Börse, has introduced its newest product, dubbed ‘360TGTX MidMatch,’ to serve currency markets with independent streaming swap market data. The new tool is a fully automated FX Swaps limit orderbook with mid-rate matching capability. It also enables traders to leverage a GUI or API connection that replaces the manual processes that exist in the FX Swaps world today, all embedded into a MiFID II compliant product.
The initiative, which complements 360T’s existing MTF offering, allows members to submit interest to buy or sell without having to worry that other participants would know the direction of the order intent. Customers benefit from independent swap market rates which ensures price transparency through an indicative mid-market rate, whilst provides access to firm bid and offer liquidity.
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360TGTX MidMatch is based on the venue’s Swaps Data Feed (SDF) product, which produces FX swap market information from the OTC market through a contribution model of liquidity providers developed in cooperation with the Germany-based company DIGITEC.
“The SDF is composed of twenty independent bank swap curves and delivers real-time data across the curve from O/N out to two years. Using sophisticated and transparent methodology, the SDF delivers not only market data for standard tenors, but also streams mid prices around IMMs, quarterly turns and broken dates. The 360T SDF is available in G10, EM and NDF currencies,’ 360T further explains.
360TGTX MidMatch, which already signed ANZ and Commerzbank, also unlocks functions that have been available only for spot markets, such as linked sensitivity orders, partial fills, granular relationship management, automated credit models and full STP.
Deutsche Börse expands FX focus
With this product expansion Deutsche Börse is extending its market data offering to the FX market, helping close a gap in the market for swap data and also demonstrating the synergies it created together with 360T.
The move marks Deutsche Borse’s continued expansion motive in the foreign exchange space and institutional level trading businesses. It comes after nearly three years of Deutsche Borse’s foray into FX ECN of its own with the acquisition of 360T, which turned to be the center of the exchange’s global FX business. The FX institutional venue managed to achieve net revenue of €21.4 million during the first quarter of 2019 up 21.6 percent year-on-year.
Previous reports also suggested that Germany’s paramount exchange is mulling the acquisition of Thomson Reuters’ FXall, an electronic FX trading platform to corporations and asset managers.
“The ability to electronically exchange risk at mid, comes at an opportune time in the FX Swap market where low volatility has led to spread compression and dealers are looking for more advanced order types to help them manage their exposures,” said David Thorne, Head of eFX Trading in EMEA at ANZ.
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