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FX Venues

We are streamlining our FX venues

We are migrating our FX venues to a common core technology - Millennium, LSEG's proven cross-asset technology. Millennium powers the London Stock Exchange and Turquoise trading and is substantially more capable of delivering multiple products and trading paradigms.

Our FX replatforming initiative aims to achieve improved performance for customers, a better user experience, and improved flexibility to respond to varying customer requirements.

The new common core technology will offer reduced latency to our FX venues, bringing them in line with the speeds seen in equities markets. This in turn will help to improve reliability and robustness of our solutions.

We recognise that performance matters and that speed is of the essence, but we are embarking on more than a simple systems upgrade. The migration of the technology is simply the first step in the evolution of our venues to adapt to the evolving structure of the market.

By investing in the replatforming of these venues onto a common core technology infrastructure, we are providing customers with the ability to trade on any or all of them according to their requirements. In this way we are committing to providing an even better service in a constantly evolving FX market.

What to expect

What improvements can you expect?

Support for NDFs to meet customer demand

As part of the venue streamlining, we will launch a new NDF capability on the CLOB. Unlike existing services, we will not use a centralised or bilateral credit model but will launch a mandatory cleared venue through LCH ForexClear.

We believe that a mandatory cleared venue for NDFs will open up the opportunity for non-banks to become NDF market makers. A more diverse range of participants will change the liquidity profile and have a positive impact on the market, benefiting not just our customers but the market as a whole.

We are excited about the potential for this function, which we have not been able to offer using existing technology.

Significant upgrades to our Matching venue

We understand that customers have differing trading needs and we are committed to providing smaller customers who do not use APIs with different mechanisms to trade, in order to enhance their trading experience.

The venue migration will see the introduction of several new order types, such as pegged and discretionary orders, giving smaller market participants a better trading experience. Similarly, the replatforming project will also see the introduction of mid-orders, which will give participants more certainty in trading and lead to a better outcome.

A single shared credit capability

This will make credit easier to navigate across all venues. As we evolve the credit function in our Forwards Matching service, customers will be able to control the credit they have within the venue by trading on a hard match or soft credit paradigm.

Better and fairer delivery of market data 

Customers are increasingly looking for more advanced analytics as part of a venue’s product offering. We will offer analytics tailored to each venue and to the needs of individual users. These reports will help customers to better analyse trades and gain more insight into trading relationships and the allocation of their business. 

Replatforming our FX venues offers the opportunity for a new paradigm for Matching. Going forward, the availability of data services will depend on a customer’s volumes and their frequency of interaction with our venues. This will ensure our venues maintain a high-level of integrity.

Consistent admin controls across venues

Operational tasks will be simplified with services such as tag management becoming self-service. The creation of end-to-end solutions means that customers will be able to use our FX venues with more autonomy than previously possible.

Improved customer experience

The migration of our FX venues to the new infrastructure will future-proof our technology and provide our customers with a significantly improved experience. A common technology framework means a common input and common set of outputs for supervision and analytics. Customers will be able to see the lifecycle of every order that has gone through the system across every platform they have interacted with.

The use of a single common core technology will allow us to put new commercial structures in place, allowing customers to benefit from discounts across our venues, with volumes traded as a market maker in one venue influencing value which can be obtained in others.