Singapore Exchange (SGX) FX has unveiled an artificial intelligence (AI) tool designed to enhance decision-making in FX trading. Through its eFX and digital assets trading solutions provider MaxxTrader, the Singapore-based trading platform aims to equip institutions with the AI tool to accelerate their FX trading strategies.

Enhancing FX Trading with AI

SGX FX's newly introduced AI tool promises to transform FX trading desks with faster, more informed decision-making capabilities. The firm highlighted the tool's ability to curate extensive FX and digital assets data, including trades, price streams, and user activities.

"With its enhanced capabilities in analyzing client data insights alongside a bank's internal data, the tool creates stronger client engagement and redefines efficiency standards across FX," Vinay Trivedi, the Chief Operating Officer at MaxxTrader, mentioned.

"Whether identifying that a client is trading less or detecting rejected quotes on specific pairs, the tool liberates traders to seek answers to key questions. For instance, a desk head can find out instantly if a key client is trading 50% less on GBP/USD, making them more inclined to contact the client quickly to find out why."

According to the press release, SGX FX's AI tool streamlines manual report sifting by promptly delivering insights. Traders can identify changes in the average hold time of top liquidity providers or detect rejected quotes on specific currency pairs, enabling them to immediately respond to market dynamics.

Stronger Client Engagement

Notably, the tool analyzes client data alongside the bank's internal metrics. This capability enhances stronger client engagement by enabling institutions to proactively address client needs and preferences. For instance, a desk head can swiftly identify if a key client trades significantly less on a particular currency pair, prompting timely communication to address any concerns or opportunities.

Last year, SGX performed remarkably well in FX and commodity trading. The platform experienced a 20% surge in trading volume across the FX futures market to 4.1 million contracts. Its SGX USD/CNH Futures contract skyrocketed by 77% year-on-year to 2.8 million contracts.

Beyond the boost in FX and commodity trading, SGX reported increased demand in its equity derivatives segment. The trading volume on the GIFT Nifty 50 Index Futures jumped 9% month-on-month in September last year. Following the positive performance, SGX unveiled an equity ETF that focuses on climate action.