HSBC selects Reuters to deliver outsourced FX services
14 April 2003 | 5774 views | 0
HSBC Group has contracted with Reuters to provide its partner banks and corporate institutions with outsourced foreign exchange (FX) trading services in its key markets around the world.
Reuters and HSBC signed a letter of intent early last week and are discussing implementation plans of the outsourced service, which will be based on a new version of Reuters' automated dealing software, developed following the vendor's acquisition of AVT Technologies.
The service will utilise AVT Technologies' Echo FX product, which supports the outsourcing of pricing of FX transactions. Banks can use these capabilities to offer partner firms the ability to create their own branded electronic FX services.
Tony Cripps, head, e-commerce, HSBC Global Markets, says the bank reviewed a number of the available alternatives but the strength of the Reuters automated dealing offering and its ability to provide an ASP service provides HSBC with a powerful proposition for its white-label customers.
Mark Redwood, managing director, automated dealing technologies, Reuters, adds that the outsourcing of liquidity is a major driving force in the evolving electronic FX market.
Reuters acquired UK trading systems vendor AVT Technologies last December and has since set up its Automated Dealing Technologies business unit. Reuters CEO Tom Glocer says the deal with HSBC endorses the acquisition of AVT and extends the vendor's community building and trading capabilities.