BNP Paribas is to launch an eFX pricing and trading engine in Singapore, enhancing the country’s reputation as Asia’s FX trading hub.

Singapore is actively targeting FX trading institutions as it responds to increased competition from other Asian countries, specifically Shanghai and Hong Kong. This news follows similar moves by Citi, JPMorgan, Standard Chartered, UBS, XTX, Jump Trading and Euronext.

“In Southeast Asia, we have seen our e-FX trading volumes grow by double-digits year-on-year. With the new e-FX Hub in Singapore, our clients will benefit from better access to liquidity, more efficient price discovery and timelier trade execution. Working with MAS on this initiative underscores Singapore’s focus on improving market efficiency and the sector’s growth potential in the region,” said Christophe Jobert, Head of Global Markets for Southeast Asia, BNP Paribas.

BNP Paribas’ new engine will offer e-FX trading of 50 currencies in spot, forward, swaps, NDFs and options, as well as commodities e-trading for both precious and base metals.

“BNP Paribas’ decision to launch its e-FX pricing and trading engine in Singapore will be an added boost to Singapore and Asia’s FX market. The engine seeks to enhance clients’ trading experiences with improved latency and pricing and will provide more efficient price discovery and improved liquidity in the Asian trading hours for clients in the Asia-Pacific, and support global follow-the-sun execution of FX trades. Over time, global and regional market participants will benefit from the further development of the FX market in Singapore to conduct greater trading and risk management in the Asian time zone,” said Gillian Tan, Executive Director, Financial Markets Development Department, MAS.

Data from the latest BIS Triennial survey showed that Singapore averaged US$ 633 billion a day during April 2019.