WEST PALM BEACH, FL (HEDGECO.NET) – A new Reuter\u00c3\u00af\u00c2\u00bf\u00c2\u00bds news report said hedge funds have increasingly gained better access to the global wholesale currency market. This convenience may soon enable themto trade currencies directly, as the boundaries between the dealer and customers have weakened considerably. According to the report, EBS an electronic FX broker said it will soon open its spotcurrency platform to the fund management industry, enabling fund managers to enter their trades directly through such platform.<\/p>\n
David Poole, chief operating officer at research and analytics firm ClientKnowledge said, “For a long time the industry has been trying to find a solution that allows clients access to interbank pricing without destroying spreads or profitability. It’s quite a gentle first step in a long process.\u00c3\u00af\u00c2\u00bf\u00c2\u00bd He also said, \u00c3\u00af\u00c2\u00bf\u00c2\u00bdEBS prices are the bedrock of electronic pricing along with Reuters. If you have to generate an electronic price at a bank you have to go through Reuters or EBS, then you can add in your own spreads and credit engine.\u00c3\u00af\u00c2\u00bf\u00c2\u00bd<\/p>\n
Poole added, “It’s a channel which had been previously closed. There are more aggressive prop trading funds that will want to place a premium on liquidity. Hedge funds’ execution desks are trading more in an interbank style as they become more focused on FX.\u00c3\u00af\u00c2\u00bf\u00c2\u00bd<\/p>\n
Hedge funds have contributed significantly towards the growth of the currency markets, according to published reports; the global currency markets undertake a total volume of $1.9 trillion of trades per day. Hedge funds activities accounts for a significant share of such trade. The volume of hedge fund trading has ballooned in light of lackluster equity trading.<\/p>\n
Yvonne Diaz, public relations director at Reuters, said “Reuters is in active discussions with customers on the best way to enable buy-side access to interbank pricing, including access via a prime brokerage model. We expect to launch something in the first half of 2005,” Diaz explained.<\/p>\n
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net<\/p>\n
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