Website launched, now facilitating transactions through FXSpotStream LLC, a subsidiary of LiquidityMatch LLC, broadening the bank's foreign exchange wholesale liquidity services.
In a strategic move that underscores Deutsche Bank's (DB) commitment to innovation, efficiency, and transparency, the leading German bank has joined FXSpotStream's service as the 18th liquidity provider. This decision positions DB to benefit from the unique commercial model that FXSpotStream offers, which has revolutionized the foreign exchange (FX) trading landscape.
FXSpotStream provides fully disclosed, multibank, relationship-based trading services for FX and precious metals instruments. The service now includes an impressive lineup of global financial institutions, including ANZ, Bank of America, Barclays, BNP Paribas, Citi, Commerzbank, Goldman Sachs, HSBC, J.P.Morgan, Morgan Stanley, MUFG, NatWest, Standard Chartered, State Street, Societe Generale, UBS, Wells Fargo, and now DB.
Joining FXSpotStream as a liquidity provider offers several advantages. Firstly, it increases DB's market presence by providing access to a broader range of clients and market participants, enhancing its visibility and potential for attracting more users. FXSpotStream is a recognised platform, particularly for institutional clients, which can boost credibility and market reach.
Secondly, the addition of liquidity to FXSpotStream positions DB as a major player in the FX market, particularly in areas like spot FX and potentially non-deliverable forwards (NDFs) and swaps, which are increasingly important segments for growth. This can attract more sophisticated clients seeking diverse trading options.
Thirdly, as a liquidity provider, DB will need to integrate with FXSpotStream's infrastructure, which may require adopting advanced technologies to maintain efficiency and competitiveness. This integration can lead to improved operational efficiency and reduced costs through streamlined processes.
Fourthly, the forex market, especially for institutional clients, is moving towards greater electronification and automation. By joining FXSpotStream, DB is better positioned to capitalise on these trends, offering more electronic trading solutions and potentially benefiting from the growth in derivatives like NDFs and FX swaps.
Lastly, the move aligns with the trend of increasing client sophistication in FX trading, where users are embracing more electronic trading platforms and APIs. This can lead to more complex and sophisticated trading strategies being supported by DB's platform.
Jeff Ward, CEO of FXSpotStream, stated that 2024 has been a historic year for FXSpotStream in terms of volumes. He believes that 2025 will be even better due to the additions made to FXSpotStream and the excellent performance of its low latency infrastructure.
At DB, Ollie Jerome, Head of European FX Product, stated that the new relationship with FXSpotStream is consistent with DB's strategy of providing liquidity to the market and its clients across all relevant venues. He also emphasised that DB is keen to benefit from the existing efficiencies that FXSpotStream affords banks, as well as future opportunities to help mitigate the transactional cost of liquidity provision and servicing clients.
FXSpotStream supports ESP and RFS trading protocols and access to liquidity provider algo suites. Price makers can pay a flat fee to provide pricing to their clients on FXSpotStream. Banks connected to FXSpotStream serve as Liquidity Providers to clients, enabling them to communicate with all the Liquidity Providing banks connected to FXSpotStream.
Founded in 2011, FXSpotStream is a bank-owned consortium that offers a unique commercial model in the market today. The platform has eliminated the cost of execution for price takers, making it an attractive option for institutional clients seeking cost-effective, efficient, and transparent FX trading services.
[1] Source: Bank for International Settlements (BIS), Triennial Central Bank Survey of Foreign Exchange and Derivatives Market Activity in April 2021.
- Deutsche Bank's decision to join FXSpotStream as a liquidity provider signals its intent to expand in the foreign exchange trading industry, particularly in areas like spot FX, Non-Deliverable Forwards (NDFs), and swaps.
- With its inclusion into FXSpotStream's platform, Deutsche Bank will gain access to a broader range of institutional clients and market participants, enhancing its visibility and potential for attracting more users.
- The integration with FXSpotStream's infrastructure may require adopting advanced technologies, thereby improving operational efficiency and reducing costs for Deutsche Bank.
