Global network provider BSO has added Singapore and Hong Kong to its FX circuit as demand for fast and reliable access to trade currency derivatives in emerging markets intensifies.
The new routes, built on top of BSO’s proven London-New York-Tokyo circuit, mean market makers can now trade currency derivatives up to 10 milliseconds faster than previously available speeds. The enhanced circuit includes improved latency and more diverse paths between London and Singapore, as well as a new trans-pacific route for firms looking to trade between New York and Hong Kong. BSO has also optimised its renowned London-Tokyo link to the lowest latency available on the market.
Emerging regions have witnessed a boom in OTC FX derivatives trading – with turnover rising more than 40% since 2010 according to the Bank of International Settlement (BIS). Singapore and Hong Kong have seen particularly strong trading activity in FX interest rates, with both regions accounting for half of the growth in OTC trading across emerging markets, which totals 33%.
Commenting on the extended circuit, Emmanuel Pellé, Chief Operations Officer (COO) of BSO said: “With a growing appetite to trade emerging market currencies internationally, traders will need a reliable low-latency network to seamlessly reach new destinations. The inclusion of Singapore and Hong Kong provides derivative hungry market makers with unrivalled access to one of the most popular FX circuits in the world.”
The new routes, available from this month, establishes BSO as the leading provider of FX low-latency connectivity to heads of trading and market infrastructure chiefs for banks, derivatives brokers and electronic market makers.