Talk of an exchange for foreign exchange has been around for almost
as long as e-trading platforms but none of them has so far have
precipitated a move in that direction. Instinet FX Cross, a joint
venture between Instinet and CitiFX, may prove to be different.
Banks are looking for ways to offer unique services and capture
more deal flow without taking on extra market risk. Instinet FX
Cross - a crossing network in which Instinet matches forex orders
twice a day, and sends them to CitiFX for anonymous execution and
settlement at its benchmark fixing rates (Citigroup has built
separate internal systems to process this) - does just that. And
the possibility of other banks joining to create an industry-wide
crossing system is real.
Instinet refuses to comment...
