Citi’s Post

I am thrilled to share that Baton Systems and OSTTRA have partnered to offer FX PvP to the industry. This partnership is set to change the industry significantly, and I'm excited to explain why. As we all know, payments are slow, expensive, and risky. However, the reasons for this are only sometimes clear, and many myths surround it. It's a complex set of issues that involve structural, legal, and technical factors. These issues become particularly evident in wholesale payments. One of the most important structural issues to acknowledge is that most settlements today happen in centralized venues that restrict direct membership to only the largest banks. This means that tier 2 institutions or non-bank entities, such as funds, asset managers, and large global corporates are excluded today. This implies they have to find a sponsor member to get access to these venues, adding more hops to the settlement. Each hop adds costs, delays, and risks. At Baton Systems, we addressed this issue with Core-Fx, settling over eight trillion dollars of value across many currencies on a peer-to-peer PvP basis with finality and no risk. However, bootstrapping a network of banks in the current environment is a challenge. OSTTRA has decades of experience providing infrastructure in financial markets; their product suites span a large part of the post-trade lifecycle for currencies and securities. The value systems of both companies matched perfectly, and our teams share the same passion for customer success, products, technology, operations, and risk. Now, thousands of financial institutions can use PvP settlements without installing new software or taking on many new risks and can get the workflow live in weeks. This partnership and offering to the market will significantly change the industry, and we couldn't be more excited about it. Learn more about this game-changing partnership here: https://lnkd.in/gQTkHPNc #fxmarket #payments #dlt #payments

Crown Agents Bank Joins the AbbeyCross ABX Platform to Provide FX Payments to Emerging Markets Colin Digby, Head of Strategic Client Coverage of Crown Agents Bank said: “Financial institutions are struggling to access hard-to-reach markets, especially as counterparties retreat from these increasingly underserved and challenging geographies. This is why the AbbeyCross ABX Platform is so important. It addresses the technical integration challenges and the transparency dynamic as it provides an easy single access point to these markets via multiple LPs. It’s a real game changer for us, the institutions we serve and the wider market.”   https://lnkd.in/eYXRVEhs Mike Robertson #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

I read an interesting comment recently that banks want to be FinTechs, and FinTechs want banking licenses. At JP Morgan, they want both! https://lnkd.in/dMNziy78

Nium Launches Global FX Enhancements to Solve Transparency Challenges of Global Money Movement and Mitigate Currency Fluctuation Risk “Our technology teams have been working hand in glove with customers to solve some of the hardest pain points to moving money, globally, in real-time,” said Ramana Satyavarapu, CTO at Nium. “Our payments infrastructure has the most logistics capabilities so that customers have complete transparency and visibility into where their money is, and how much it costs to send. Gone are the days of cross-border money movement being an opaque black box. We’re bringing global business payments into the light.” https://lnkd.in/e-eH5Y4W Benyam Hagos Mike Bermingham Pratik Gandhi Prajit Nanu Jeremiah Glodoveza #FFNews #Fintech #FintechMagazine #FintechFinance #Paytech #PaytechMagazine #Insurtech #InsurtechMagazine #KYC #Lendtech #Regtech

How can fintechs use high interest rates to navigate capital markets? 📈💰 Read the recent Finextra article on #fintech & #commercialbanking by Vladimir Krasik - Global Head of Internal Treasury at Revolut 👉 https://lnkd.in/eEnQhW95 #thelongread #finance #payments #challengerbank #economy #money #technology #innovation #future #trends #predictions #banks #banking #financialservices #financialinstitutions #digitalpayments #instantpayments #nextgenbanking #digitalbanking #capitalmarkets #interestrates #currency #startups #fx #banks #banking #capital #liquidity #liquiditymanagement #HQLA #assets #assetmanagement #regulation #riak #riskmanagement #IRRBB #treasury #treasurymanagement 

360T Marks Industry Milestone with FX Swaps API Mid-Market Trading   Frankfurt – September 13, 2023 – Streaming mid liquidity via APIs is now available on 360T’s Swaps User Network (SUN), with Deutsche Bank and ING executing the initial trade. This is the first time that two banks have been able to trade FX Swaps via API and match at the market midpoint, marking a paradigm shift for the industry.   “Establishing a marketplace that facilitates risk offset at the mid—market level signifies the next phase in the advancement of FX swaps trading. This development finally delivers for the industry opportunities that have long been present in smaller markets, and empowers us to better cater to the rising client demand for access to these products“ said Shuo Wu Global Head of Forward eTrading at Deutsche Bank.   “Trading FX Swaps via API and executing at mid can deliver significant benefits. The ability to auto price FX Swaps offers more efficient execution for our clients while enabling us to hedge our own risk better, and we’re delighted to now be deploying this technology” said Simon Bevan, Head eFX Trading, ING.   “We’re confident that this will mark a fundamental change in how banks trade FX Swaps, opening the door to auto-hedging, aggregation and even algorithmic execution. 360T SUN will ultimately allow our bank partners to better service their clients and enhance their own trading capabilities while unlocking further growth in the FX Swaps market” said Simon Jones, Chief Growth Officer at 360T. Please see the full press release here: https://lnkd.in/eUfjb-KT   #360T #fx #fxtrading #fxswaps #milestone

JP Jenkins migrates from voice based services to a wholly digital approach #banking #banks #banco #banca #banque #finance #finanzas #finanza

Nice article from Richard Estes on why some banks still have bifurcated #FX pricing systems, how they can fix this, and the practical benefits of doing so: https://lnkd.in/gKBJdxPs He sums it up well: "Regional banks that have not properly invested in an e-FX infrastructure and integrated in into all of their external and internal client FX trade sources need to realize that e-FX is not simply for the top end of the market" #FXtrading #FinTech #Banking

Project Meridian FX: Joint Project by the Eurosystem and London Centres, and the Bank of England, to Test Synchronised Settlement in FX "The project will provide insights on how operators of real-time gross settlement (RTGS) systems could enable interoperability with new payments technologies, such as distributed ledger technology (DLT). It will highlight the opportunities that the synchronisation model could unlock, including more innovative and efficient settlement services for a wider range of assets that are settled in central bank money." https://lnkd.in/e8bNrBHp Bank for International Settlements – BIS #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

Just published my new report that recognizes the diversity of the #B2B #currency processing market through 5 innovative #fx processing models: Banking-as-a-Service: executable FX rates via API gateway backed by the liquidity and robust risk management capabilities of a partner FI. FX-as-a-Service: Multi Bank FX best execution service. Virtual accounts: A virtual multi-currency account acts as an alternative to opening bank accounts in different countries. Peer-to-peer (P2P) FX trading: FX hedges are executed in bulk at a fixed, predetermined transaction cost, rather than being split with higher overhead costs. DLT-based FX trading: Automated matching and netting transactions reduces costs and reliance on external settlement networks. https://lnkd.in/dxhmzpzJ