The eFix Matching solution – a collaboration between EBS, ICAP's electronic foreign exchange business and Global Broking – has seen growth of over 160 per cent in average daily volume (ADV), since its launch one year ago in May 2014.
eFix Matching, which enables customers to execute Fix interest electronically on the EBS Market platform, provides anonymous access to a central pool of liquidity for the most liquid daily fixes, including the ECB 13:15 Fix, WMR 16:00 Fix, HSRA AUD/USD Fix and EMTA USD/RUB Fix, and improved global matching opportunities.
A growing proportion of the ADV (approximately 25 per cent) is now traded via API as participants are increasingly automated in their execution of fixings, versus no automation a year ago.
There has also been diversification of the currency pairs traded. At launch, EUR/USD accounted for 76 per cent of eFix ADV but now accounts for 46 per cent of volume, as ADV in pairs such as AUD/USD and GBP/USD continues to grow. With over 150 unique active participants, there has been an ecology shift in recent months towards earlier order submission to take advantage of the first-in-first-out eFix policy. This clears the risk pre calculation window, resulting in increased fill ratios and improved trader experience.
The sustained volume growth of eFix Matching, together with EBS Market’s global network and robust infrastructure, have positioned the solution as a fair and trusted ‘global utility’ for FX fix execution. Such a solution was recommended by the Financial Stability Board (FSB) in 2014 following its consultation on foreign exchange benchmarks to ensure a robust fix methodology and execution environment. Planned enhancements to eFix Matching later this year will further expand and strengthen the service’s functionality and value to the market.
David Casterton, CEO, Global Broking, ICAP, says: “We’re pleased with the development of eFix Matching, which is the first electronic and voice venture within the ICAP Group. Our voice brokers play a major role in building liquidity and momentum. Together with EBS we have successfully brought together our respective customers to execute on the platform which is at the forefront of Fix innovation.”
Gil Mandelzis, CEO of EBS-BrokerTec, says: “One year on from the launch of eFix, we are seeing significant growth in volumes. The interest shown by the market demonstrates the need for a global central utility to execute benchmarks in an electronic and transparent fashion. We are delighted with the warm reception eFix has enjoyed. The solution is firmly at the centre of FX market development and importantly works in partnership with our clients to transform and better the way that the Fix is traded in the market, consistent with the FSB recommendations.”