Tue, Mar 12, 2019 - Page 10 News List

Citi, UBS to open hub in Singapore

Bloomberg

Citigroup Inc is planning to join UBS AG with an electronic currency trading and pricing platform in Singapore, setting up systems to boost liquidity in Asia’s biggest foreign-exchange (FX) hub.

Singapore would become the fourth FX trading engine location for Citi, which also has systems set up in Tokyo, New York and London, the bank said yesterday.

“The expansion of our FX trading engine will also lead to a vast improvement in latency for our clients in Singapore and across much of the Asia Pacific, who prior to this would connect via Tokyo or one of our trading engines outside the region,” Asia Pacific markets and securities services head Stuart Staley said in the statement.

The facility, which is slated to go live in the fourth quarter, would support 23 spot currencies, including all those in the G10, the group of countries — Belgium, Canada, France, Italy, Japan, the Netherlands, the UK, the US, Germany and Sweden — that agreed to provide the IMF with additional funds to increase its lending ability.

The planned expansion is expected to inject more liquidity into Singapore’s currency market, which recorded US$517 billion in daily average trading volume in 2016 — higher than Hong Kong and Japan, according to a triennial central bank survey by the Bank for International Settlements.

Citi’s system is also expected to support 13 deliverable emerging-market currencies. The engine would be built in-house and includes a proprietary pricing and hedging algorithm, through which clients can deal. In addition to currencies, the platform would allow the trading of gold and silver.

Citi was the fifth-largest currency trading firm by market share last year, after the likes of JPMorgan Chase & Co and UBS, a Euromoney Institutional Investor PLC survey showed.

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