December 3, 2020 - Macquarie Commodities and Global Markets (CGM) have announced today plans to establish an Asia FX pricing engine in Singapore. Singapore will be Macquarie’s third FX trading hub globally following the establishment of infrastructure in London and New York.

The centralised FX hub will enhance Macquarie’s digital offering and allow it to better service its clients across the Asia Pacific region. Locally hosted liquidity will allow customers optimal access to various developed and emerging regional markets including Australia, Singapore, Japan, China, Taiwan, Korea and India.

The APAC pricing hub is an extension of CGM’s global digital trading platform ‘Aurora’, which allows clients real-time access to Macquarie’s broad suite of products and services. Aurora enables clients to interact with CGM electronically and offers a customised solution to their trading, hedging and operational requirements.

“As a leading provider of foreign exchange transactional services for more than 30 years, we have a strong presence across Asia with extensive client coverage in deliverable and non-deliverable FX and derivatives,” said Tom Freeman, Managing Director, Macquarie Commodities and Global Markets. “We also recognise the importance of technological innovation in global financial markets and we are excited to offer our clients access to FX liquidity in Singapore – at any time, and from anywhere – through this market-leading digital platform.”

“We welcome Macquarie’s establishment of its first FX pricing hub in the Asian time zone in Singapore. Tapping into the growing pool of global liquidity providers that are anchored in Singapore, Macquarie will be able to offer better price discovery and trade execution quality to its clients in the Asia Pacific region. This latest addition of Macquarie’s FX pricing hub will also strengthen Singapore’s proposition as a global FX price discovery and liquidity centre, as more buy-side players base their e-trading infrastructure in Singapore to better connect with regional markets.” said Lim Cheng Khai, Executive Director, Financial Markets Development Department of Monetary Authority of Singapore.

Aurora is being developed in partnership with Celer Technologies, a fintech company that specialises in digital product delivery and electronic trading.

The new Asia FX pricing engine will be consuming local liquidity and is expected to be launched for clients in Q1 2021.

Macquarie joins a growing list of primary market making banks, brokers and platforms announcing the establishment of an eFX pricing engine in Singapore. In recent months, a number of other firms have announced that they have either gone live with, or plan to establish, eFX pricing engines in Singapore. UBS was the first global bank to announce its plans to launch eFX pricing in Singapore in September 2018. Since then, Standard Chartered (live since January 2020), JP Morgan (live since April 2020), Barclays, Goldman Sachs, BNY Mellon, BNP Paribas, Deutsche Bank, CITI (now live), have all shown their commitment to setting up a pricing engine in Singapore. Last month, KGI Securities announced that it was setting up Flextrade's Maxxtrader solution in SG1.

In September 2019, Euronext FX (previously "Fastmatch") announced that it had gone live with local trading in Singapore.

Last month, November 2020, Singapore bank UOB announced that it is also setting up a pricing engine in Singapore.