June 03, 2020
Refinitiv enables further efficiencies in FX Swaps trading with launch of new API solution
Forwards Matching API furthers move towards electronification in FX Swaps markets, providing greater flexibility in trading.
London / New York – Supporting the ongoing shift in the FX markets to trade more volume in FX Swaps electronically, Refinitiv has launched the Forwards Matching API solution, enabling automated access to the market leading Forwards Matching MTF venue.
Forwards Matching is a market leading FX Swaps venue, used by traders across a large and wide set of globally distributed clients and supporting hundreds of billions of dollars in trading a day.
There is strong market demand to move to trade more volume in FX Swaps electronically. Electronic trading could enhance the efficiency of eHedging flows and positions especially given the recent growth in FX Swaps trades, and further support improved ways of trading in the markets given the impact of the Covid-19 crisis.
Based on the Spot Matching API already used by many FX participants, the Forwards Matching API will further support trading efficiencies and the management of costs for Refinitiv clients. With APIs also available for FX Swaps, customers will benefit from additional transparency on data and quick access to liquidity bringing greater efficiency across the trading workflow.
From a regulatory perspective Forwards Matching is part of Refinitiv’s MTF, regulated by the Central Bank or Ireland, and fully supports MiFID II execution, monitoring and reporting requirements. On the Matching platform, clients can trade FX Swaps on the MTF and FX Spot off the MTF.
“With the move towards electronification of FX Swaps trading comes the need and the opportunities for more innovative solutions to drive efficiencies without sacrificing liquidity and effective trade execution. This is especially true in the ongoing market where the trading workflow has changed considerably,” said Paul Clarke, Head of FX Venues, Refinitiv. “Matching Forwards API delivers on this need. With access to over 300 active client sites trading on the market leading venue for FX Swaps, Matching Forwards API will help achieve greater efficiency for FX Trading.”
FX swaps are one of the instruments with biggest growth in the FX markets. In the 2019 BIS Triennial Survey FX Swaps accounted for 49% of the overall FX volume, and had increased in volume by 35% from $2.377 trillion in 2016 to $3.2 trillion in 2019. A Greenwich Associates study noted that the percentage of deliverable forwards and swaps traded electronically were 77% and 75% in 2018 and 2019, respectively.
Refinitiv FX trading platforms recently saw Forwards volumes of $399bn in average daily trading volumes for the month of March, a new record, and Spot volumes rise over $100bn in average daily trading volumes for the months of February and March. More on Refinitiv’s Matching platform is available here.
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