Got to give EBS credit. With trading volumes on their legacy EBS Trading Platform losing market share, they have been actively making changes and adapting to regain interest in their product. Earlier this year, EBS creating changes in its dealing rules that in essence were aimed at driving away HFT traffic and pacifying the venue’s bank Liquidity providers. According to EBS, the immediate results were increased levels of liquidity available to traders. However, the changes also led to wider minimum spreads and drove away some traders to other trading platforms. EBS responded to this problem last week with the launch of EBS Direct, which provides for relationship based trading coupled with the platform’s ECN services. The combination of EBS with EBS Direct put the FX trading in a stronger position in realtion to similar products from FXall and Hotspot FX.
Following on last week’s news, EBS has announced that it has acquired ClientKnowledge, a liquidity advisory firm. ClientKnowledge specializes in FX liquidity optimization. In regards to the close proximity of the two deals, EBS stated “this acquisition follows the announcement on November 27 that EBS is launching EBS Direct, its relationship-based disclosed liquidity offering and further delivers on EBS’s strategy of expanding its role and partnership with the FX market.”
After expanding its liquidity offerings, adding a consulting arm to assist traders and liquidity providers in maximizing the use of the network is a solid initiative. The ClientKnowledge service strengthens EBSs non-trading products which include the growing Traiana Harmony post-trade analysis system. With a new offering from rival inter-dealer Tradition set to launch next year, the institutional FX trading segment is expected to only become more competitive.
EBS acquires ClientKnowledge, a leading liquidity optimisation advisory firm specialising in FX London, December 3, 2012 – EBS, ICAP's market-leading electronic FX platform, today announces that it has acquired Global Research and Consulting Limited, known as ClientKnowledge, the leading advisory liquidity optimisation firm specialising in FX. ClientKnowledge was established in 1993 by Justyn Trenner and provides expert advice and consultancy services to participants in the FX market in sales, trading and associated technology, using quantitative analysis and research. It is anticipated that, in due course, ClientKnowledge will become part of EBS’s operations and its services will be offered to existing and new customers, under the name EBS Liquidity Optimization Services. It will allow EBS to provide a wide range of unique quantitative and analysis services, alongside existing products, to support efficiency, best execution and improved profitability for EBS’s customers. This acquisition follows the announcement on November 27 that EBS is launching EBS Direct, its relationship-based disclosed liquidity offering and further delivers on EBS’s strategy of expanding its role and partnership with the FX market. EBS will continue providing innovative and value-added liquidity enhancing tools and services across a range of FX products, focusing on improving the trading experience and efficiencies of its customers and partners, reducing costs, and ensuring a robust and fair market for all participants. The acquisition was completed on 28th November 2012 and Justyn Trenner will join EBS’s Executive Team as the Global Head of Liquidity Optimization Services. Gil Mandelzis, Chief Executive Officer, EBS, said: "ClientKnowledge has developed unique capabilities in the FX market, working closely with and assisting their customers in analysing their liquidity needs and strategy and optimising their approach to achieve their goals. Last week we unveiled EBS Direct, our disclosed liquidity offering, with over 100 customers already signed up it will complement our traditional anonymous liquidity. "With the introduction of EBS Liquidity Optimization Services, based on ClientKnowledge’s exceptional and unique skills and reputation, we will be able to work closely with our customers to analyse their particular needs and deliver any type of liquidity their strategy calls for. We are really impressed with the ClientKnowledge team, their entrepreneurship, leadership and passion. I am delighted to welcome Justyn and his team to EBS and together we look forward to delivering exceptional value to our customers." Justyn Trenner, Global Head of Liquidity Optimization Services said: "I am thrilled that ClientKnowledge is joining EBS. Together we will be in an extremely strong position to help customers to generate improved yield from their client flow and further innovate in looking at risk, execution, their business workflow and technology. With EBS’s unparalleled reputation and customer reach our combined efforts will be a great addition to the already deep partnership EBS has with the FX community." About EBS ICAP’s award-winning electronic EBS platform is at the heart of global spot FX trading and remains the core source of genuine, executable spot FX liquidity for professional trading counterparties in all market conditions. EBS delivers impartial and effective access to spot FX, precious metals and NDF traders globally, offering optimal price discovery and execution, and supports a wide range of FX trading strategies, as well as API and manual trading. For more information, go to www.ebs.com. About ICAP ICAP is the world's leading interdealer broker and provider of post trade risk and information services. The Group matches buyers and sellers in the wholesale markets in interest rates, credit, commodities, FX, emerging markets and equity derivatives through voice and electronic networks. Through our post trade risk and information services we help our customers manage and mitigate risks in their portfolios. For more information go to www.icap.com.
