360T, a provider of FX trading solutions, has enabled mid-liquidity streaming via APIs on its Swap User Network (SUN). The initial trade was executed by Deutsche Bank and ING, marking a significant development for the FX Swaps market.
360T SUN is currently the sole platform providing continuous mid-price streaming for FX Swap instruments. According to the company, the innovation caters to the growing demand for clients seeking access to FX Swaps.
Shuo Wu, the Global Head of Forward e-trading at Deutsche Bank, said: "Establishing a marketplace that facilitates risk offset at the mid-market level signifies the next phase in the advancement of FX swaps trading. This development finally delivers for the industry opportunities that have long been present in smaller markets and empowers us to better cater to the rising client demand for access to these products."
360T Enhances FX Swaps
360T has expressed confidence that this milestone will fundamentally change how banks approach the trading of FX Swaps. The company noted that it paves the way for auto-hedging, aggregation, and algorithmic execution. 360T SUN aims to empower bank partners to enhance their trading capabilities to enhance growth in the FX Swaps market.
360 T's innovation arrived when the forex trading landscape was experiencing mixed performance, reflecting the influence of market conditions and trading dynamics across different platforms. For instance, Cboe FX witnessed a blend of positive and negative indicators in August.
The US-based platform reported a total trading volume of $944 billion, a notable increase from the previous month's figure of $922 billion. However, the average daily volume (ADV) for spot FX faced a decline, dropping from nearly $44 billion to $41 billion. This dip can be attributed to August having more trading days (23 days) compared to July (21 days).
FX Market Experiences Declining Trading Volume
Similarly, 360T experienced a significant downturn in August as its total trading volume for the month amounted to $508 billion, marking a substantial decrease from July's figure of $616 billion. On a different note, Euronext FX saw its monthly volumes rise to $518 billion, surpassing the amount of $492 billion reported in the previous month.
According to a report by Finance Magnates, the decline in market volatility had a noticeable impact on forex trading operations, resulting in narrower profit margins for financial institutions. Research from BCG Expand suggests that income from foreign exchange activities among the top 100 banks declined 15% in the first half of 2023.
Similarly, centralized trading exchanges (CEXs) experienced a decrease in aggregate trading volumes for spot derivatives, falling 12% to $236 trillion in July. This trend can potentially hinder the economic rebound following the disruptions caused by the Covid-19 crisis.
