Matching, on the other hand, is still considered what’s called a primary market, as the trading data it produces is also used by the entire industry to benchmark FX trades. Today, FXall, connecting more than 2,400 clients with around 200 banks across 500 currency pairs. “We created something where prices would go out electronically, and you could just click on the best price.”įXall made its first trade in May 2001. “It used to be that people would need to make many calls to different banks to get different prices for one deal,” says Neill Penney, group head of FX at LSEG. The natural evolution from that was another platform that instead connected dealers to customers, a third-party venue where customers could find banks and execute deals. “We thought, how about creating an electronic platform where they can show their interest to everybody else, where they can put in a bid and offer on the screen.” Matching is a leading primary market venue linking bank and high frequency trading institutions. “When banks did price discovery, they would need to call everybody else to see if there was interest,” says Joris. “It transformed the markets.”Įleven years later, Reuters launched another game-changer with the trading platform Matching. It was the first system that allowed traders to go from chat to electronic notification of the trade, which would then be captured with automated ticketing and sent to the back office for confirmation,” says Bart Joris, head of FX sell-side at LSEG. It enabled them to connect with other FX traders around the world, and negotiate and confirm deals via electronic text. The company launched a software called Reuters Dealing System, accessible to subscribers of the Reuters financial information terminal - then ubiquitous in banks and trading offices. In 1981, at a time when all FX business was conducted over the phone, our business (under the Reuters name at that time) was the first to enable traders to do something unprecedented: communicate via electronic messaging. This ecosystem constitutes a market that, in the past three decades, evolved to be one of the largest industries in the world, with daily trades totalling US$6.6 trillion. Behind that evolution stands Refinitiv, a company that pioneered many of its innovative breakthroughs, and is now a part of LSEG. Today, this simple concept powers a complex ecosystem that, via electronification, connects a multitude of agents - from the biggest banks in the world to solo trader desks in developing markets, from global regulator institutions to the infrastructure providers like Refinitiv. Any company that needs to buy equipment, fund factories and pay employees in different parts of the world fundamentally depends on foreign exchange to keep its business running. This has the economic function of facilitating trade and payments around the world. This was an invaluable collaboration that has enabled the Central Bank of Guinea to meet IMF’s reforms and requirements for funding, not to mention build more resilience, efficiency and transparency into their FX processes across the workflow.Īt its core, FX is a simple concept: you buy one currency and pay for it in another currency, at a given rate, with banks providing the liquidity for the exchange. For the Central Bank of Guinea, Refinitiv, an LSEG business, deployed their FX Trading platform giving the local market access to more liquidity and a range of automated trade reporting tools, as well as Auctions, a software that gives users a real-time view of bid submissions. Electronified FX markets enable traders to deal in thousands of tickets a day online, augmented by automated workflows, using algorithms that ensure they are compliant with regulations at every step of the trade.įurther driven by the COVID-19 pandemic that struck in March 2020 and the subsequent acceleration to the online environment, the need for electronification has never been greater. Electronification not only digitises real-life workflows, but also makes them faster, more efficient and transparent. The Central Bank of Guinea needed electronification of their foreign exchange trading process – to trade electronically and with more transparency.
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