Standard Chartered’s strength in quoting a wide range of exotic and emerging market currencies mean banks in the Cognotec e-commerce network will have the opportunity to offer a wider range of currencies to their end users by selecting Standard Chartered to cover their positions in the market. Banks using Standard Chartered as a liquidity partner maintain their client relationship and credit exposure but pass their market risk to Standard Chartered.
Liquidity Linq forms part of the innovative range of Cognotec Internet-based foreign exchange and money market dealing services. The two main services, AutoDeal LITE and AutoDeal DIRECT, allow banks to offer their clients a totally automated, web-based, branded online dealing service while all maintenance and upgrades are carried out by Cognotec. Banks using AutoDeal LITE or AutoDeal DIRECT may use a liquidity providing bank, such as Standard Chartered, to cover their market risk in specific currencies. The service automatically passes customer positions up to the liquidity provider when the end customer’s bank receives a request for a price - thus creating a back-to-back deal.
"As the ‘banker’s bank’ our forte is in quoting a diverse range of currencies to our core market. Liquidity Linq is a natural extension of this business model to the Internet. It will enable us to expand our market share in many currencies while at the same time allowing us to automate our relationship with our existing bank clients," said Paul Jebson, Group Head of Institutional and Commercial Banking Sales and Marketing, Treasury at Standard Chartered.
"Standard Chartered was one of the first banks to implement a web-based dealing solution to its corporate clients in Asia. As a pioneer in the field, Standard Chartered’s adoption of the Liquidity Linq model represents a ringing endorsement of Cognotec’s open solution to the problem of connectivity facing all dealing banks in the marketplace." said Albert Maasland, Global Head of Marketing at Cognotec.