R5FX Enters Into ‘Beta’ Test Phase for Emerging Markets Currency Trading

R5FX, a foreign exchange (FX) marketplace specializing in emerging markets (EM) currencies, has just announced the implementation of its beta testing phase, culminating in the completion of its first Brazil, Russia, India and China (BRIC) trades, according to an R5FX statement.

The FinTech start-up has already targeted a Q3-Q4 2015 launch date and is aiming to foment interest in trading EM currencies. This is reflective in an industry-wide push to migrate from voice trading to a more transparent and streamlined screen-based market approach, which draws on deeper Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term.

The fundamental aim of R5FX is also to fortify market growth in EM currencies, namely with respect to traders and prospective market participants – indeed, the spot FX market has undergone a steadfast growth, notwithstanding in parallel to the adoption of e-commerce.

R5FX operates a central credit model, allowing for the provision of better credit efficiency and the reduction of the number of credit lines required to trade the growing volumes in emerging market currencies – this also was a point of emphasis with respect to the upcoming MiFID regulation imposed on Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term ratios.

According to Jon Vollemaere, CEO of R5FX, in a recent statement on the test phase, “R5FX continues to make significant progress, and I am happy to announce that we have successfully completed a number of BRIC beta test trades. Our New World Interbank marketplace is the result of over 400 product requirement meetings globally, which have driven our whole proposition, from the technology and platform design, to market structure innovation and new trading models.”