It will be J.P. Morgan’s fourth electronic FX trading infrastructure globally that allows clients to conduct FX transactions effectively according to their geographical locations, adding to its existing platforms in New York, London, and Tokyo.
The new trading engine is designed to speed up trade executions for clients and covers a full range of spot FX and precious metals. The partnership with MAS, Singapore’s financial watchdog, is part of the central bank’s plan to put the country in the map as a global price discovery and liquidity center for FX during Asia trading hours.
This strategy has resulted in a number of leading financial services firms establishing matching engines in Singapore. In June, Standard Chartered Bank announced its plans of setting a Foreign Exchange (FX) e-trading and pricing engine by Q1 2020. FastMatch, now owned by Euronext, will go live with its matching engine in Q4 2019 after having opened a new commercial office there. Singapore Stock Exchange has started using its new financial framework product – Multi Matching Trading Engine, NASDAQ’s trading engine, which helps SGX unify their operations, messaging, and data infrastructure.
“Singapore remains J.P. Morgan’s long-standing FX hub in Asia Pacific, and this partnership with MAS will improve the client experience through reduced latency in trade execution and greater price transparency”, said Sudhanshu Sanadhya, head of Asia currencies and emerging markets trading at J.P. Morgan. “With electronic FX trading set to grow in the region, Singapore will benefit from the flows, and we see this initiative consolidating Singapore’s position as Asia’s leading FX trading center.”
“J.P. Morgan’s decision to launch its electronic FX trading and pricing engine in Singapore is a welcome boost to Singapore and Asia’s FX market. A number of top-tier global players are building out their electronic trading and pricing engines here, which is strong validation and endorsement of Singapore as a global FX center”, said Gillian Tan, Executive Director, Financial Markets Development Department at MAS. “With the growth in Asia’s FX trading needs and increasing demand for more efficient price discovery in the Asian time-zone, regional market participants will benefit from better connectivity and latency as well as enhanced pricing and trade execution in the Singapore FX electronic trading ecosystem.”