The three banks join Barclays, BNP Paribas, Deutsche Bank, Morgan Stanley, Royal Bank of Canada and UBS as liquidity providers to TraFXpure, which is set to go live on January 31, says Tradition head of strategy and business development Daniel Marcus. In July, Marcus told EuromoneyFXNews that Tradition was in talks with as many as 30 potential liquidity providers for TraFXpure, as the design phase of the platform came to completion and the build phase began.
“The banks we have brought in as liquidity providers are vested in the success of this platform,” says Marcus in an interview on Monday. “They are involved in the decision-making process, they are a kind of forum that is part of the consultation on the platform’s development and they are committed to be sound amenders as well as liquidity providers.”
Marcus adds that Tradition is hoping to add more liquidity providers to the TraFXpure “list of supporters” soon.
“We are getting quite a lot of interest in TraFXpure across the board, and we have now got about 20 participants telling us they want to connect to the platform shortly after it goes live,” says Marcus. “There is general market interest in this venture over and above the nine banks that have signed on as liquidity providers.”
TraFXpure will deploy using Tradition’s existing Trad-X technology as well as new matching logic capabilities, which are being built into the trading technology.
The aim of the platform as a trading venue is to normalize varying speeds at which the diverse pool of market participants access the liquidity pool, essentially nullifying situations where any given counterparty gets a better result on execution if they are a millisecond or microsecond faster than another trader.
“TraFXpure is an example of another Tradition initiative that is being designed with the market for the market,” says Marcus.