J.P. Morgan To Launch Electronic FX Engine In Singapore
J.P. Morgan announced today that it will establish an electronic FX trading and pricing engine in Singapore, with support from the Monetary Authority of Singapore (MAS), designed to speed up trade executions for clients.
Scheduled to launch in early 2020, the new trading engine 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. Covering a full range of spot FX and precious metals, the new platform demonstrates the firm’s continued investment in this space for its clients.
“Singapore remains J.P. Morgan’s long-standing FX hub in Asia Pacific and this partnership with MAS will improve client experience through reduced latency in trade execution and greater price transparency. 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,” said Sudhanshu Sanadhya, head of Asia currencies and emerging markets trading, J.P. Morgan.
The partnership with MAS is part of the central bank’s strategic initiative to develop Singapore into a global price discovery and liquidity center for FX during Asia trading hours.
“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. 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,” said Gillian Tan, Executive Director, Financial Markets Development Department, MAS.
The growth of FX trading in Asian currencies has led to increasing concern about settlement risk.
The bank benefits from automated end-to-end transaction flow and reports, greater efficiency and scalability.
Scientific Beta’s indices are tracked by $55bn in assets owned by global institutions.
The exchange's decision is based on the increasing risk of coronavirus infection in Hong Kong.
The cash settled contracts will be listed on ICE Futures Singapore.