ICAP wants to offer electronic trading in the New Zealand dollar around the globe. The inter-dealer broker is introducing the “Kiwi dollar” (NZD) to the EBS electronic spot FX trading platform as a tradable currency against the US dollar so traders can view the NZD tradable pair along with the other major dollar, euro and yen currency pairs, and precious metals, on the same screen.
Trading in NZD has traditionally been relatively illiquid but has grown significantly of late, driven by a number of factors. It is a high yielding currency so has proved particularly popular with investors.
The ICAP-owned EBS platform trades the G7 currencies, including the US dollar, euro and yen, so traders can deal in the New Zealand dollar on the same screen and platform as the other major global currencies.
The NZD is currently traded mainly in Wellington and London, and ICAP reckins that adding it as a tradable pair on the EBS platform will put the currency in front of thousands more trading institutions across both emerging and developed markets, leading to increased, additional liquidity in the currency.
“We’ve been working closely with kiwi dollar traders in Wellington to help meet their needs for additional trading opportunities,” says Darryl Hooker, emerging markets and precious metals manager, ICAP Electronic Broking.
“They told us they need access to the electronic global book on one dealing screen and to price, depth and liquidity and trading in the G7 currencies. Our position as the global provider for the major traded currencies, particularly the US dollar, euro and yen pairs, make us an obvious choice for these traders,” he continues.
John Body, Head of Markets, ANZ Wellington, says the addition of the New Zealand dollar to the EBS trading platform further “recognises the maturity of the New Zealand capital markets and the increased focus of the global investor community on the New Zealand dollar. This platform will further enhance liquidity, benefiting both local importers and exporters and broadening the pool of global investors active in the New Zealand dollar.”
ICAP has a strong presence in the Asia region, with a major share of the key yen market and offices in Wellington, Sydney, Singapore, Tokyo and Hong Kong.