Goldman Sachs has joined Finteum’s intraday liquidity management platform and completed its first series of intraday FX swap trades, as weekly volumes on the platform reached $1 billion.
Goldman Sachs is joining existing participants NatWest Group and UBS, both of which continue to scale their use of intraday FX swaps to manage liquidity requirements across core currencies.
The emergence of an intraday FX swaps market is intended to provide banks with an additional mechanism to manage short-term liquidity needs as settlement cycles shorten and payment flows move closer to real time.
Specifically, Finteum’s platform allows banks to borrow and lend cash intraday using FX swap transactions executed on the TP ICAP UK MTF.
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Goldman Sachs’ initial activity included the largest intraday FX swap trade completed on the platform to date, according to Finteum, highlighting anincreasing focus among large global banks on intraday liquidity management.
Carey Halio, global treasurer of Goldman Sachs, said: “Intraday FX swaps are a powerful new tool to help Goldman Sachs efficiently manage our liquidity needs. We are pleased to work with Finteum to advance this market, leveraging distributed ledger technology to execute transactions and move cash in near real time, at scale.”
Regulatory attention on intraday liquidity has increased following the publication of the European Central Bank’s sound practices for intraday liquidity management in November 2024.