State Street said earlier today that it had completed the closing of its acquisition of Currenex.
"The acquisition accelerates State Street's participation in the fast growing electronic foreign exchange trading market while significantly increasing and diversifying State Street's trading customers beyond traditional asset managers to include more active currency managers and hedge funds," said the Boston-based bank in a statement. "Together, State Street and Currenex will provide customers with the most comprehensive set of foreign exchange trading capabilities available in the market place today."
FXall today announced that it has gone live with Accelor, a foreign exchange ECN for professional market participants. It aims to combine the anonymity of ECN trading with an advanced technical architecture and comprehensive market data.
Electronic foreign exchange platform FXall has added benchmark fixings to its order management system, QuickOMS. This means that clients can now submit request-for-stream and benchmark orders through a order management window.
In a new report by Boston-based financial research and consulting firm Celent, it is estimated that the FX market could grow from close to US$3 trillion to US$4 trillion of daily turnover by 2009–2010, with 75% of the interdealer spot market volume and 50% of the dealer-to-client volume traded electronically.
Electronic trading of foreign exchange continues to grow fast, and the market could increase from close to US$3 trillion to US$4 trillion of daily turnover by 2009–2010, with 75% of the interdealer spot market volume and 50% of the dealer-to-client volume traded electronically. Hedge funds lie behind the drive on to electronic platforms, and will accelerate it.
Orc Software, a provider of technology for advanced trading, market making and brokerage, yesterday announced that Nordea, a financial services group in the Nordic and Baltic Sea region, will offer FX execution on the Orc ExNet to ExNet participants, commencing Q1.
Barclays Capital's FX strategy team has recently published an article entitled "Carry trades: market regimes, positioning risk and petrodollars," in which it discusses whether last week's setback to carry trades is temporary or if an even bigger correction is around the corner.
State Street has bought Currenex, the online foreign exchange trading platform used by currency traders, including banks and hedge funds.
State Street has $564 million in cash - which observers see as a handsome price - but says the purchase will accelerate its growing participation in the electronic foreign exchange trading market.
"Over the last two years we've observed that there is a great need for an electronic platform that supports the trading of large blocks of foreign exchange (FX)," says Vijay Kedia, president and CEO, FlexTrade. FX-trading is still conducted over the telephone, which makes it prone to information leakage, says Kedia. "
Global Forex Trading (GFT) has been chosen by Strategy Runner as the company's first partner in the online foreign exchange trading market. Online forex traders will have access to algorithmic trading architecture based on Strategy Runner's technology and GFT's forex dealing operation. "We are constantly establishin