Word reaches me that a new netting system aimed initially at foreign exchange prime brokers (PBs) is about to be unveiled by EBS and Traiana.
The service has the working name of NetLink and has apparently been developed in response to customer demand. It is no secret that many in the industry are moaning about the cost of processing tickets through CLS even though – as I reported a couple of weeks ago – the settlement utility has taken steps to lower its charges. Pre-netting trades is seen as an obvious way of reducing costs.
There is a certain amount of irony in EBS’s involvement, given that its successful FXNet business was effectively destroyed by the advent of CLS, which – as readers of this column will be fully aware – only accepts trades on a gross basis. EBS’s move could perhaps be seen as a protective measure should FXMarketSpace, the Reuters and CME joint venture, ever get the go-ahead to pre-net trades through CME clearing.