Independent multi-dealer corporate currency portal Currenex is exploring the possibility of moving to IP-based interbank network SwiftNet, as an alternative delivery channel to the Internet.
Under the proposals, which were publicly aired at a Swift symposium in New York in December, SwiftNet Browse and InterAct would be used in a Member Administered Closed User Group environment to deliver multi-dealer FX execution services from Currenex.
Although first to market, the Currenex portal has struggled to match volumes on the bank-owned FXall network. By moving to SwiftNet - positioned as a single window for connection to multiple industry infrastructures - Currenex is looking to benefit from deeper embedding within the fabric of the financial markets. Possibilities being explored include integration with confirmation matching systems, such as SwiftNet Accord and with CLS for settlement netting.
At the same NY symposium - which included represenatives from banks, brokers, investment management institutions (IMIs) and market utilities, including the Federal Reserve and the Depository Trust Clearing Corporation - Swift also highlighted proposals for a new SwiftNet affirmations service and an FpML pilot for the OTC derivatives market.
Introducing the initiatives, Malene McMahon, senior manager, Swift, said a SwiftNet Affirmations service would allow small users to agree to trades communicated to them via the SwiftAlliance WebStation. If an ongoing evaluation is positive, Swift says it will commence a pilot involving market makers and buy-side customers to verify proof of concept.
The financial messaging network is also seeking 12 pilot users for trials of a programme to transport FpML messages over SwiftNet InterAct. The pilot is scheduled to start in Aprial 2005.