HSBC Australia

HSBC Expands Asian Currencies with New FX NDF Algo Suite

HSBC’s FX Alternative Execution Services are expanding into local Asian currencies for its non-deliverable forwards (NDF) algorithm suite by launching a new offering called NDFlex. According to reports from Finance Magnates and Profit & Loss, the suit will add pairs of five Asian currencies initially – Indonesian rupiah, Indian rupees, Korean won, Philippine peso, and Taiwan dollar – against the US dollar. The new product is similar to the bank’s algorithm offering for G10 currencies.

Though the algorithm suite will be initially available on BidFX and Bloomberg, the bank has plans to add it to more platforms in Q4 2020. According to Profit & Loss, Vivek Sarohia, recently appointed global head of FX alternative execution services at HSBC, the algos have been live since July and have received a good response from clients. “We have been working on developing the NDF algos for about six months with our clients,” he explains. “We have seen, like our peers, a significant uptick in demand for algos and this gave us the validation to expand our offering into emerging markets, which is a strong suit of HSBC.”

With the increasing demand for NDFs, many major global players are now adding the instruments for their clients. Only a couple of weeks earlier, Finance Magnates reported on Barclays’ addition of similar NDF algorithms on the BARX electronic trading platform.

HSBC is also considering entering the LatAM markets, especially Brazil, with similar NDF offerings.

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