United Overseas Bank Limited (UOB) says it will set up an electronic foreign exchange (FX) pricing and trading engine in Singapore, which will serve as the hub to service its client franchise.
The new engine will be launched by the second quarter of 2021.
The pricing and trading engine will take advantage of reduced latency via co-location connectivity to improve price discovery and to enhance pricing capability.
This will enable UOB’s clients to tap the available market liquidity with greater efficiency.
The establishment of the pricing and trading engine is supported by the Monetary Authority of Singapore (MAS) and contributes to Singapore’s aim of growing its FX market into the electronic trading centre for the region.
“By setting up our electronic FX pricing and trading engine in Singapore, UOB joins other major FX participants in serving strong institutional FX flows in Asia, enhancing price discovery and better execution for our regional clients. We look forward to playing a major role in Singapore’s fast-growing FX e-trading ecosystem,” says Leslie Foo, UOB’s head of group global markets.
“UOB’s establishment of its FX pricing and matching engine in Singapore, alongside the strong pool of global FX liquidity providers here, marks another important milestone in Singapore’s role as the global FX price discovery and liquidity centre in the Asian time zone. It remains a key priority for MAS to further broaden and deepen our FX market, and we welcome more buy-side participants to join the fast-growing FX e-trading ecosystem in Singapore,” adds Lim Cheng Khai, executive director, financial markets development department of MAS.
As at 11.42am, shares in UOB are trading 25 cents lower or 1.1% down at $22.81.
