After a record performance for its FX business in Asia in 2018, Refinitiv has just announced that it is on track to outperform again this year. Trading activity in foreign exchange from the region significantly increased over the past six months, leading to a new high for 2019.
The increase is primarily driven from the buy-side of the market as trading volumes from asset managers increased by over 30 percent year-on-year so far. After a record-breaking 2018, during which the company scored a number of awards in the region, the firm is significantly outperforming once more.
Both buy-side and sell-side FX market participants are benefitting from Refinitiv’s all-encompassing product like. Between dealer-to-client trading on FXall, and interdealer trading on Matching, both FX trading platforms are servicing different segments of the market, cementing the leadership spot for Refinitiv in the FX space.
Growth in Asia has been brisk, despite the recent soft patch in FX volatility which started at the beginning of 2019 and lasted well into the spring.
Voice Trading Move to eFX Continues
According to Refinitiv, buy-side participants seek to achieve greater operational efficiencies in their trading workflow. With recent regulatory changes around best-execution, trading volumes continue to shift from bilateral voice trading over to electronic multi-dealer platforms like FXall.
“We are committed to further adapting our buy-side trading workflow on FXall to the needs of local investors,” said Jonathan Woodward, Regional Head of Transactions Sales at Refinitiv. He noted that trading volumes from asset managers rose 30 percent in 2019.
“We have also had success across various large Asian corporations” added Woodward, citing a 24 percent increase in volumes from corporates over the same time period.
Refinitiv’s FX solutions also power the Asian inter-dealer FX market, via the company’s Matching platform. This being one of the historical primary markets for FX, and electronic trading, as well as the company’s pricing engine for liquidity providers.
“We continue to work closely with regional central banks and liquidity providers in order to promote the development of local primary markets, increase electronic liquidity, and create more transparency,” Woodward explained.