ICAP, the world's leading interdealer broker, is introducing e-trading in FX forwards to the global financial markets, with the launch of i-Forwards.
i-Forwards provides e-trading for a range of short-dated and longer-dated currency forwards, enhancing liquidity and price depth, together with certainty of trade execution and global access to counterparties through a user-friendly trading screen.
It is set to become a global electronic trading venue and source of liquidity for short dated FX forwards, building on the company's global reputation for e-trading spot FX.
The system also uses market data from the award-winning ICAP-owned EBS platform, the source of the spot FX market, and is therefore ideal data for forwards calculations.
Already live in Europe, i-Forwards has attracted a large number of counterparties. Trading volume has increased and the feedback from banks using the system has been very positive.
The platform is now being extended to the other major financial markets, including Asia and the Americas, to build a global e-book in forward FX.
Don McClumpha, Product Manager, ICAP Electronic Broking, Europe, said:
"Forwards traders universally regard price and liquidity as being of paramount importance and the opportunity to electronically execute with straight through processing is compelling.
"Trading forwards through ICAP provides access to an orderly market and a global book of counterparties and liquidity.
"We worked closely with the EBS management team to build on their expertise in running a global FX currency book, which is reflected in the design of our offering for e-forwards trading. We are fully confident this will become the electronic venue of choice for professional forward FX traders."
Norbert Strozynski, LBBW Stuttgart, Germany, said: "From our experience, i-Forwards is giving the best combination of voice and electronic broking with an up-to-date technology. It is bringing greater efficiency, especially to our liquidity management. That is what we are looking for and ICAP can deliver it."
i-Forwards offers a range of trading features designed to give professional traders total control. These include real and indicative pricing to five years, tradeable prices all the way down the curve, minimum entry amount and the ability to drip-feed orders
The system also includes Request for Quote functionality and is CLS compliant, enabling organisations to link i-Forwards to their settlement systems easily and efficiently.