TD Bank Group’s (TD) global presence includes TD Securities (TDS), which has strong wholesale relationships with pension funds, asset managers, insurers and corporates, along with a strong retail and wealth FX business, and consistently ranks number one or two in market share for Canada. TDS’s e-FX team has made significant strides in enhancing the bank's data and analytics capabilities in Canada, especially in the area of market microstructure.
Through regular client meetings, the team shares valuable insights on liquidity dynamics, execution strategies, and the evolving electronic FX market. This client-centric approach ensures that clients receive competitive pricing tailored to their needs, alongside detailed market analyses. TD’s meticulous tracking of hit rates and platform data highlights its commitment to delivering reliable pricing across a broad client base.
A key element of TD's enhanced data-driven strategy is its advanced GFX client data portal, Panoramic. This platform aggregates and organizes client data globally, enabling more effective client engagement. Sophisticated FX models, powered by advanced algorithms, provide robust analysis that enhances idea generation and mitigates risk for clients. This data-centric approach allows the bank to consistently improve its offerings.
On the retail and wealth side, the bank offers a wide selection of over 50 currencies available for digital order, complemented by a forecasting tool that predicts currency demand. This tool automates inventory replenishment at TD branches, ensuring that currency availability meets consumer demand efficiently. This innovative approach not only boosts currency availability but also enhances operational efficiency across the network.
TDS’s e-FX platform further enhances its market presence by distributing prices and liquidity across 10 client-facing platforms and several API connections. Offering products such as spot, outrights, non-deliverable forwards and swaps, the platform supports 34 currencies and 185 currency pairs. Notably, the platform can auto-quote large notional swaps exceeding $1 billion, even during volatile markets. Since January 2023, the platform has executed over 55,000 trades, amounting to a notional volume of $400 billion for its Canadian institutional and corporate franchise.
In addition to its advanced pricing capabilities, TDS continues to innovate with algos including XTX, a sophisticated implementation shortfall algo, and a partnership with Cürex group for peg limit and time-weighted average price algos. On the retail side, TD's comprehensive offering includes rates payments, banknote products, and cross-border payment solutions, enabling retail customers to make remittances to over 200 countries in more than 100 currencies.
TDS has earned top rankings in FX markets, including a top spot among Canadian banks for FX forwards and options with mutual funds in 2023 and 2024, as well as a top 10 global ranking in 2022.
"We continually focus on providing our customers with access to competitive foreign exchange rates in whichever channel they choose to bank," says Anthony Herceg, director and head of retail and wealth FX sales and distribution.
"Through the pandemic, we prioritized the need for our customers to send money internationally by extending our currency offer for outbound remittances in both our branch and digital channels; an offer that continues to grow with adoption in the last year."
"Preparing for North America's pent-up travel demand post-pandemic, we heavily invested in cash forecasting tools that would put the right currencies and amounts in TD branches where our customers could easily access them. On-site availability of cash for customers before they travel increased our foreign banknote sales year on year, where industry participants reported flat or negative growth."
Pete Kalamvokis is head of Canadian institutional sales.