Corporate uptake of online foreign exchange trading is gathering strong momentum, according to a survey by Greenwich Associates on behalf of independent portal Currenex.
Greenwich surveyed a cross section of large corporations that use the Currenex online FX trading exchange in their e-FX activities. Nearly half of the multinationals interviewed anticipate an increase in volume of their online foreign exchange activities over the next year.
Among the benefits cited, members believe that Currenex’ trading reports enable them to better ascertain and manage their trade details, trade histories, and the performance of their relationship banks - while creating more precise and improved audit trails for their operations.
Nearly all respondent buy-side members believe that participation in the Currenex service enables banks to better meet their needs. More than three quarters of those surveyed also felt that banks realised overall benefits by joining as sell-side institutions on the platform.
Lori Mirek, president and CEO of Currenex, says: "It is precisely because we are an independent and unbiased platform open to all, that we can generate this type of credibility."
Following the recent demise of the bank-backed Atriax platform, Currenex is now engaged in a three-cornered tussle with State Street and remaining multi-bank portal FXall for liquidity in the corporate currency market.
In another recent Greenwich Global Foreign Exchange study of more than 1400 financial exchange users, 33% says they now trade online, up from just 15% last year. On average the proportion of volume traded online has risen from 11% to 16%.