Multi-bank foreign exchange trading portal FXall is to invest $5 million in systems enhancements as it reports record volumes boosted by increased interest from institutional asset managers.
FXall says counterparties on the platform traded more than $22 bn in one single day of trading in November, with monthly volume peaking at $271 bn, representing an average daily volume of $13.6 bn.
The rise in volumes is attributed to increased trading from institutional customers, especially asset managers. Institutional customers now account for approximately 55% of total volumes, says FXall, up from 40% earlier this year.
The rise in take-up and volumes during 2003 has persuaded the consortium-owned FXall board to approve investment in system enhancements in excess of $5 million. FXall will also grow its headcount by 15% in 2004. The new targets coincide with the arrival of two new liquidity providers, KBC and LloydsTSB, bringing the total number of banks on the platform to 46.
FXall says the new investment will enable the platform to expand capacity while securing access to fast, automated prices regardless of volatile market conditions.
Phil Weisberg, CEO of FXall, comments: "During the last year, the market for online foreign exchange trading has been transformed. The initial focus on click and deal functionality has matured into a need for solutions that automate the entire FX process."