EBS, Icap's market-leading electronic FX platform, today announces system and policy changes following extensive consultation with its customers on both the buy and the sell side.
The changes, which follow the publication of EBS's new dealing rules on 10 July, are designed to strengthen the resilience and improve the trading environment in the FX market.
The key updates are:
• Price granularity: moving to half pips and full pips in a selection of core pairs
• Revised quote and hit fill ratio targets to be set on a pair by pair basis
• New approach for enforcement of fill ratio policies, including cancellation of financial surcharges for non-compliance
• New quoting guidelines for Asia trading hours
Over a three-month period EBS worked collaboratively with its community, seeking views and feedback on how to enhance the system and so create a more balanced, liquidity enhancing environment. EBS engaged in detailed consultation with both the buy side and the sell side in order to identify changes that will strengthen the robustness of EBS and the overall FX market.
The changes will be implemented on 17 September 2012.
Bob de Groot, Global Head of Spot Trading, BNP Paribas: "EBS has a long history at the centre of the FX market and has established strong relationships with its customers. The changes now being implemented will further strengthen trust and confidence in the platform."
Jeff Feig, Global Head of G10 currencies, Citi: "By taking the time to listen to the market and learn from other asset classes EBS has proved its commitment to remaining the market's partner, leader and trusted source of liquidity."
Danny Wise, Global Head of FX Trading, Credit Suisse: ''We are supportive of EBS's initiatives to improve and enhance their platform and the market infrastructure. They continue to play a key role in the FX market and we have been impressed with the lengths they have gone to get market participant involvement.''
Zar Amrolia, Global Head of FX & Head of Fixed Income etrading, Deutsche Bank: "EBS has led a collaborative prococess, bringing together FX market participants in an open and transparent manner. We welcome this approach and are supportive of the direction EBS has taken."
Steven Cho, Global Head of Spot/Forward Trading, Goldman Sachs: "The collaborative review and implementation of changes to the EBS dealing environment demonstrate their commitment to an orderly FX market. We are supportive of EBS' efforts to improve their platform and strengthen the market."
Fred Boillereau, Global Head of FX & Commodities, HSBC: "EBS's focus on surveillance and enforcement is unique and a very important step in providing a platform that supports the long-term health of the FX market."
Troy Rohrbaugh, Global Head of FX and Rates, J.P. Morgan: "We are very supportive of the unique role that EBS has at the centre of the FX market, and we are delighted to work with them in strengthening their platform and the effective operation of the industry as a whole."
Tim Carrington, Global Head of FX, RBS: "As a core part of the FX market, EBS is listening to its customers and is successfully adapting so it continues to meet the markets evolving needs."
Chris Purves, Global Head of FX E-commerce, UBS: ''We are very supportive of the collaborative strategy that EBS has followed to strengthen the platform and improve the overall efficiency and transparency of the FX market.''
Sean Castette, Global Head of FICC, Getco: "EBS's process of talking to the whole FX community will help build a stable and healthy market. We expect that the changes resulting from this collaborative process will improve the platform for everyone".
Alex Gerko, Head of FX trading, GSA: "We are very supportive of EBS's strategic direction to implement system and policy changes, such as the move to half pips, that support genuine liquidity and strengthen the market. That motivation is common to both sell and buy-side firms and we are delighted EBS has embraced this approach along with the rest of the community."
Gil Mandelzis, Chief Executive Officer of EBS: "EBS has a unique role at the heart of the foreign exchange market and we recognise how important it is to respond to its changing dynamics. We are very grateful for the support we have received throughout this process from all major sell and buy side participants and the entire EBS community in order to strengthen EBS's robustness, resilience and leadership in the market. While today marks an important milestone for us, it is part of an overall plan of continuous improvement, innovation, thought leadership and very close collaboration with our community which will continue as we design further enhancements."