Electronification of the FX NDF Market


Aite Senior Analyst Yue Malan has delivered a 21 page impact report explaining how NDFs are increasingly being traded electronically.  The report covers:

  • Market Structure Change
  • Global Trading Volumes
  • On and Off-SEF Trading
  • Central Clearing
  • The role of Singapore, London and New York

The report can be around on the Aite website here with a free download of the table of contents.

While electronic trading in most foreign exchange products has increased over the years, the nondeliverable forward market has been particularly active this past year. As global NDF trading volume continues to grow, further electronification and adoption of modern technology are being offered to clients through new tools and NDF algo development. Regulations on swap execution facilities trading and mandatory reporting continue to bring market transparency, though off-SEF trading is multiplying to improve the overall market with anonymity and deeper liquidity.

This Impact Report is based on interviews with over 10 global FX market participants, including buy-side institutions, banks, dealers, electronic communication networks, multidealer trading venues, clearinghouses, and supporting technology providers. This report also uses publicly available data published triennially by the Bank for International Settlements and semiannually reported jurisdictional data from the Federal Reserve Bank of New York Foreign Exchange Committee, the London Foreign Exchange Joint Standing Committee, and the Singapore Foreign Exchange Market Committee.

This 21-page Impact Report contains six figures and one table. Clients of Aite Group’s Institutional Securities & Investments service can download this report, the corresponding charts, and the Executive Impact Deck.

This report mentions 24 Exchange, 360T, Bloomberg, Euronext FX, Equinix, Jump Trading, Refinitiv, and XTX Markets.