SEB Merchant Banking is to participate in Bermuda-based start-up Forexster's online FX auction market.
Taking its cue from the Naspter song-swapping system, Forexster's patent-pending trading application supports direct order matching and "request-for-quote" services between participants. All users can trade anonymously with all credit-providing financial institutions and their clients, effectively buying in and out of currency pairs while preserving existing credit relationships.
Seppo Leskinen, head of foreign exchange at SEB Merchant Banking (London), comments: "The Forexster network has the potential to grow rapidly due to its ease of deployment and the potential benefits the underlying architecture delivers to all participants. Being an early supporter presents profound advantages for SEB."
Bear Stearns was the first financial institution to signal its participation in the network back in March 2003.