EBS BrokerTec expands its successful NDF offering with launch of new instrument
20 April 2016
London, 20 April 2016 – EBS BrokerTec, ICAP's market-leading electronic foreign exchange (FX) and fixed income business, announces today that in response to customer demand it has added a new non-deliverable forward (NDF) instrument – one month against the fix, to be called TOD/TOM.
EBS Market is providing an effective electronic solution for trading today (TOD) and tomorrow’s (TOM) fixing against the one month. The EBS Market platform provides customers with an easy to use service with dedicated matching engines as well as a fully transparent audit trail and straight through processing. This ensures TOD/TOM trades are all executed at the same industry-leading standard as other products on the platform.
Since 2012 trading on the one month outright on EBS Market has seen strong growth. The new TOD/TOM product is a complementary instrument to the one-month outright and together they represent a meaningful part of the overall NDF market. The launch of TOD/TOM is an additional element in EBS BrokerTec’s commitment to continuous leadership and innovation in the market and responds to client demands for consolidated liquidity that makes trading execution and risk management more efficient.
Commenting on the launch, Darryl Hooker, Co Head of EBS BrokerTec Markets said: “The EBS Market platform has established itself as key to trading NDFs electronically and has seen meaningful support from clients which is reflected in strong volume and counterparty growth. We have taken the lead in automating what has until now been a very manual process, and believe the new TOD/TOM product will fit seamlessly with the existing NDF offering. In particular we see real interest from clients already trading in the one month outright product.”
EBS Market is the only central limit order book to offer meaningful liquidity in NDFs and is increasingly the source for reference rates in a number of core NDF currencies including Indian rupee and Korean won.
The new TOD/TOM product will be easy to use with automated straight through processing, trade auditing processes and pre-screened credit. In the first phase of the launch customers will initially be able to trade Off-SEF instruments across Asian NDFs. On-SEF instruments and Latin American NDFs will be offered in subsequent months.