FXMarketSpace, a centrally-cleared, global foreign exchange (FX) platform for the over the counter (OTC) market, has announced the launch of FXSettle, a settlement solution that the firm claims delivers advances in both the risk management and cost model for institutional FX transactions.
FXSettle has been live for the past two months. It is currently available through two global settlement banks, with another in the process of becoming live. The firm claims this service benefits the banks’ prime brokerage customers and their in-house trading over the FXMarketSpace platform.
With the introduction of FXSettle, the company adds, customers now have a choice in how they settle completed trades and have the potential to substantially cut settlement costs. FXSettle securely routes trades dealt on FXMarketSpace directly to the customer’s bank or agent for settlement, which, according to the firm, provides increased efficiency whilst guaranteeing against both settlement risk and replacement risk.
“FXSettle provides the market with a secure, low-cost settlement framework that enables further growth in the global FX markets,” said Mark Robson, CEO of FXMarketSpace, in a statement. “By building partnerships with CME Clearing and settlement banks, FXMarketSpace can now deliver this solution, providing customers with cost reductions whilst ensuring the highest level of protection against both replacement risk and settlement risk,” he added.