The bank's foreign exchange engine in Singapore adds to its existing platforms in New York, London, and Tokyo, and covers a full range of spot FX and precious metals.
J.P. Morgan has announced the launch of its new foreign exchange trading and pricing engine in Singapore. In a statement on Wednesday, the bank said it had successfully completed its first trades with clients, following successful testing in March.
The firm said that a pricing engine that is physically located geographically closer to clients is «especially relevant in the context of today’s high volatility/high volume markets» as it increases resiliency and reduces latency in trade execution.
It also cited its 2020 «Global E-Trading Survey» conducted prior to Covid-19 that shows the three most important criteria for institutional and professional traders when selecting a liquidity source are price consistency (79 percent of respondents), availability during volatile markets (70 percent) and response time (47 percent).
Global Price Discovery and Liquidity Center
The FX engine was announced in August 2019, in partnership with the Monetary Authority of Singapore (MAS), as part of the central bank’s strategic initiative to develop Singapore into a global price discovery and liquidity center for FX during Asia trading hours.
«The platform will help to support the increased trading flows we’re seeing in Asia’s leading FX trading center,» said Sudhanshu Sanadhya, head of Asia currencies and emerging markets trading, J.P. Morgan.
MAS' push has also seen firms like Standard Chartered, UBS, Citi, BNP Paribas, Euronext, Jump Trading and XTX Markets build their own regional trading infrastructure in the city-state.
