BNY Mellon, a heavyweight bank, has recently revealed its plans to build a high-performance FX trading and pricing engine. The plan involves doing so with the partnership of the Monetary Authority of Singapore (MAS). This stands as the latest step in the bank’s goal to bolster its presence within the region’s Forex industry.
Improving Its Singapore Position
The bank is seeking to establish a low-latency electronic FX infrastructure within the country of Singapore. This, in turn, will help improve the quality of execution, as well as overall price discovery for clients initially in spot. This boost will go further, affecting the deliverable and non-deliverable forwards as well as the swaps.
BNY Mellon is already seeing significant volumes in FX within Singapore, doing so across over 70 deliverable currencies. This success stretches out into most restricted APAC markets as well, being possible due to its large custody franchise executing daily flows for its clients and causing a unique, uncorrelated form of liquidity.
The Mandatory Good Word
Back in 2019, the bank formed a dedicated FX custody trading desk within Singapore itself. Furthermore, it relocated the Short-Term Interest Rate Trading, or STIRT, business. While situated initially in Hong Kong, the bank established it in Singapore, alongside a newly-established options trading desk.
Darren Boulos, the Head of FX Sales and Trading within BNY Mellon’s Asia Pacific arm, commented on the matter as a whole. He explained that the company used the past four years to fully integrate, as well as accentuate, the capabilities of its global FX offering. According to Boulos, this new move stands as the next step in BNY Mellon’s commitment to the region at large, and to Singapore in particular. According to Boulos’ statement, Singapore serves as the company’s hub in its Asia G10 FX trading. He went further, stating that the local support the bank receives in Singapore will allow it to accelerate its offering of additive liquidity to Asia’s clients.
A New Era
As the world slowly starts to recover from the chaos that was the COVID-19 pandemic, it’s good to see big businesses expand their ventures into other territories. As the world slowly tried to recover from the chaos it wreaked in the financial world, as well as the massive amounts of civil unrest it caused
As time goes on, all this turbulent time will be, is a footnote in history. A turbulent time when the world was temporarily wracked in chaos. With any luck, this chapter will come to an end quite soon.