e-Forex-July-23-HighRes-SCREEN

More documents

Recommendations

Info

Technology and automation – Bringing a new dimension to Emerging Market FX trading SPECIAL REPORT ABBEYCROSS AND THE EM FX PAYMENTS MARKET AbbeyCross is a B2B FX trading and compliance marketplace or platform for emerging market currencies, co-founded by CEO Mike Robertson who previously ran the cross-border payments business at Bank of America. There are currently 145 currencies in global circulation and most banks offer a transparent, automated and efficient service for G10 currencies with full straightthrough-processing. But it is a different and much more challenging picture when it comes to the EM currencies where banks don’t have an onshore presence. Most of the banks have outsourced the payments process in these markets to one vendor, which, says Robertson, is “problematic”. “There are continuity issues from using one provider and best execution problems from only receiving a single rate when you have to show regulators you are executing at fair prices. That is the reality of the EM FX payments market,” says Robertson. AbbeyCross has been developed as an alternative infrastructure to solve some of the problems with EM FX payments. “There has always been competition, especially with the emergence of payment-themed fintechs,” says Robertson. “However it takes a significant amount of time for these platforms to onboard new clients. And banks have an extremely limited budget for this, especially for EM currencies where the volumes are much lower. Our strategy is to create an infrastructure where integration is no longer an issue.” Robertson says that AbbeyCross won’t necessarily make it easier – if a bank wants full API integration, it will take time – but the bank only has to do it once and then gains access to a whole host of payment providers. “We believe it is changing the narrative around EM payments,” says Robertson. “There was a structural issue with EM payments. They are complicated and it differs by jurisdiction. Some require physical settlement and there are different documentation requirements and volume thresholds, so it is a messy combination of several structural issues,” says Robertson. But things are changing. “Volumes are increasing and global trade patterns are changing. China has been the dominant manufacturing centre which has driven volumes into China but now we have manufacturing centres in Thailand, Indonesia and elsewhere becoming manufacturing centre,” says Robertson. That said, EM currency payments still remain a very small percentage of overall payment volumes. An EY/McKinsey report shows that the payments market has $140trillion of volume daily - $100trn is in the same currency and $36trn is in G10 currencies while EM currency payments make up the remaining $3-4trn. So what is it about the technology that has changed? Much of the technology investment to date has been on the funds settlement and trading side of things and less so on the payments side. Where money has been spent on the payments process, it has focused on the front end and user interfaces rather than the back-office infrastructure. “Legacy technology is really at the heart of it,” says Robertson. “We are not necessarily providing new technology but creating a payments marketplace that banks can use to access multiple payment providers.” Mike Robertson AbbeyCross is currently at the proof-of-concept phase and plans to have live trading clients by this time next year. “We hope to have live trading with at least one tier one bank, starting with EM payments. We believe it is a game-changer, not just in terms of pricing but also innovation,” says Robertson. 60 JULY 20<strong>23</strong> e-FOREX
Powering your technology infrastructure, so you don’t have to. Add Beeks solutions to strengthen your existing technology estate and you can strongly focus on the core activities that drive your business forward, without unnecessary distractions. #poweredbybeeks On demand compute Trading infrastructure Connectivity Managed cloud Beeks analytics Colocation hosting Beeks is a leading pure-play managed cloud compute, connectivity, and analytics provider, solely focused on the continuously changing technology needs of market participants and financial services. Our dedicated development team build market-driven solutions that improve workflow and efficiency. beeksgroup.com JULY 20<strong>23</strong> e-FOREX 61
Page 1 and 2:
transforming global foreign exchang
Page 3 and 4:
Welcome to e-FOREX transforming glo
Page 5 and 6:
Order Management System Supercharge
Page 7 and 8:
Institutional EMBARK POWERFUL LIQUI
Page 9 and 10: Evolving with the Market Added Func
Page 11 and 12: JULY 2023 e-FOREX 11
Page 13 and 14: We build the community. You join th
Page 15 and 16: MARKET COMMENTARY is an industry ch
Page 17 and 18: TRADING OPERATIONS Nicholas Pratt e
Page 21 and 22: TRADE SMARTER, FASTER AND SAFER Ref
Page 23 and 24: Welcome to the next generation of b
Page 25 and 26: THE BENCHMARK SERVICE YOUR PORTFOLI
Page 27 and 28: GFMA calls for greater use of DYNAM
Page 29 and 30: REGIONAL E-FX PERSPECTIVE JULY 2023
Page 31 and 32: Your gateway to the global FX ecosy
Page 35 and 36: REGIONAL E-FX PERSPECTIVE and deep
Page 37 and 38: to building trusted partnerships Fl
Page 39 and 40: The Global Standard FX Swaps and Fo
Page 41 and 42: REGIONAL E-FX PERSPECTIVE notes.
Page 43 and 44: Next level financial markets A new
Page 45 and 46: PROVIDER PROFILE Our clients in Asi
Page 47 and 48: THE e-FOREX INTERVIEW Michael Idzko
Page 49 and 50: THE e-FOREX INTERVIEW of the issues
Page 51 and 52: THE e-FOREX INTERVIEW Coming back w
Page 53 and 54: THE e-FOREX INTERVIEW WE NEED PEOPL
Page 55 and 56: SPECIAL REPORT JULY 2023 e-FOREX 55
Page 57 and 58: We set the standard in FX. The proo
Page 59: FX trading and liquidity solutions
Page 63 and 64: FINTECH distinct examples of capabi
Page 65 and 66: FINTECH Cutting through the hype: W
Page 67 and 68: YOUR PIONEERING PARTNER IN INSTITUT
Page 69 and 70: 2023 PRINCIPAL SPONSORS JULY 2023 e
show all

e-Forex-July-23-HighRes-SCREEN

Create successful ePaper yourself

Delete template?

Save as template?