R5FX Trading in Emerging Markets and the Link to Shanghai
This is a follow up to the announcement about going live with a link to Shanghai here, and explains more widely what R5FX are trying to achieve.
R5FX is a marketplace dedicated to emerging market trading, with price distribution that is not restricted by bilateral credit, enabling clients to access the entire FX market. It provides increased speed and access, meaning you can price your customers more accurately and hedge your risk more effectively.
- No Last Look
- Liquidity from Bank and Non-bank Institutions
- No API Charges
- Free Data
- Low Impact
- Central Credit & Clearing Model
- Low Risk
Increased Access, Greater Liquidity
R5 is designed for both bank and non-bank organisations to make and take prices. By introducing an electronic marketplace specifically designed for the needs of emerging market traders, R5 brings together unique and diverse sources of liquidity. Participants benefit from access to improved FX liquidity, even in difficult to price pairs, as banks provide global market pricing and non-banks provide prices derived from alternative sources such as global futures, bond and equity markets.
Upcoming regulation requires EM traders to drastically change their current channels for Emerging Market / NDF pairs. Today, these currencies are priced and hedged over a number of old, difficult to track, fragmented and inefficient methods. R5’s credit model provides equal access to all participants, enabling organisations to extend their trading and market making activities to include EM and NDF’s.
The R5 marketplace allows you to trade on “your” rate rather than crossing the spread. This allows for greater transparency on the “real” market reference rate centralised in R5. It offers greater electronic efficiency for price creation and hedging needs while reducing transactional and market data costs.