FX โSwap โMarket Eyes Further Electronification to Enable Streaming Prices
Londonโ – Increased electronic trading within โthe interdealer foreign exchange (FX) โฃswap market โขis seen as a crucial โฃstep toward enabling the widerโข adoption โof โstreaming โprices for dealer-to-client transactions, according โtoโ market participants.
The โขshift towards electronic execution is already underway in dealer-to-client swaps trading,with request-for-quote (RFQ)โ and request-for-stream mechanisms gaining traction.UBS’s Head ofโค e-FX Distribution for Europe, the โMiddle East and Africa, Ozgun Unal, noted the growing trend. “[Dealer-to-client swaps trading] โis increasingly executed electronically,either โคvia request-for-quote (RFQ) or request-for-stream,” unal said.
The move โto greater electronification aims to improve price revelation and efficiency in the FX swapโค market, ultimately facilitating a โคtransitionโฃ to more transparent, real-time pricing for end-users.FX swaps, agreementsโฃ to exchange principal and interest โpayments in different currencies, areโ a significant component ofโ the broader FX market, used for hedging and investment strategies.