Unlike current global currency trading, the hub will be electronic platform enabling up to 50 currency trading including derivatives.
French bank BNP Paribas plans to join American JPMorgan Chase & Co and Citigroup by setting up an electronic currency trading Forex hub located in Singapore. It will support electronic trading with up to 50 different currencies in spots and forex derivatives. Additionally, it will allow trading with base metals.
“Electronic currency trading volumes grow by double in year-to-year in South-east Asia, ” Christophe Jobert, head of global markets for South-east Asia at BNP Bank, said to Bloomberg. Clients should benefit from better access to liquidity, faster exchange rates and more efficient price discovery.
The current forex trade in Singapore daily trades volumes around $633 billion. That is higher than any trade in Hong Kong and Japan. Such value could only be compared to the UK or the US.