The Chinese renminbi and Mexican peso are now live on foreign exchange trading venue TraderTools’ Unique Liquidity Network (ULN).
The currencies are among 16 underserved and emerging market (EM) currency pairs launched on the ULN within the last six months, FX Week has learned, with volumes ticking up for each of the pairs. Other currencies that are now successfully launched on TraderTool’s platform are Czech koruna (CZK), Polish zloty (PLN), Hungarian forint (HUF), Russian ruble (RUB), and the Israeli shekel (ILS).
Yaacov Heidingsfeld, co-founder and president, of TraderTools, tells FX Week that year-to-date there has been a six- to seven-fold growth in the average daily volume for the platform’s focused pairs.
“We have been adding currencies since the beginning of the year,” he says. “China, Mexico, ruble, shekel and rand, those are the big growers. Turkish has stayed very strong.”
Heidingsfeld didn’t reveal the actual volumes. “While the ULNservices all currency pairs, we are focused on the delivery of underserviced and EM pairs,” he says.
“For the year to date, our fourth most active pair on the platform is Turkish Lira. In our ULN Turkish is our number one pair. In actual volume it is just a tick behind USD/JPY,” he adds. “Our next most active is Scandinavia and I put the five crosses together, USD/SEK, USD/NOK, EUR/SEK, EUR/NOK and NOK/SEK. The next are ZARand then Aussie and Kiwi.”
TraderTools launched the ULN last year in order to provide a single liquidity pool in EMand local market currency pairs. There are approximately 60 unique makers in the EM and underserviced market currencies and more than 100 takers now on the ULN.
“Because this is a transparent, tailored, relationship model, we are disclosing to the makers and takers tags so that they can choose to quote for the business that it wants to win,” Heidingsfeld says.