SGX Unveils FX RFQ Function
Posted by Colin Lambert. Last updated: September 30, 2021
Singapore Exchange (SGX) has launched a new RFQ (request for quote) service on its Titan OTC Pro order management and information platform.
The new function for SGX FX futures went live on 22 September 2021, enabling market makers, traders, brokers and sales execution desks to negotiate and transact block futures and options trades within the Titan OTC ecosystem. SGX says the key benefit for participants is the reduced friction in bilateral block trades with more effective trade negotiation, trading and clearing within a secured environment with full audit trail.
It says that a total of nine trades with total notional value of $26.8 million were transacted using the RFQ function during the first week of launch. The pioneer batch of counterparties who traded include Aravali Asset Management, Bank of China, BPI Financial Group, GF Futures, HNK Alpha, Longrun Financial Group and Societe Generale.
“We see this as an important facility to support efficient block trade clearing,” says Sun Xiaohe, vice president, Bank of China Limited, Singapore Branch. “Providing an electronic channel for block trade reduces negotiation burdens on participants and will likely attract more volume into the exchange.”
KC Lam, head of FX and rates, SGX, adds, “With tighter FX regulations and heightened market volatility, participants are valuing price transparency and workflow with audit trail more than ever before, and we are pleased to deliver this valuable service to our clients as they navigate an increasingly complex market environment.”