ICDX is the first Indonesian exchange to receive regulatory approval from Indonesia’s Commodity Futures Trading Regulatory Agency to offer currency products, and is slated to launch 27 currency contracts in the first quarter of 2013. Gain GTX will connect its network of institutional liquidity providers to ICDX, while ICDX will offer Gain GTX’s ECN technology to it members, delivering a platform for price discovery, trade execution, order management and algorithmic trading.
“This partnership is unique in that it allows ICDX to offer deep liquidity in these new currency products from day one,” says Glenn Stevens, CEO of Gain Capital.
“In addition, existing users of our GTX platform will benefit significantly from their ability to access the unique liquidity that partnering with an established international exchange provides.”
Megain Widjaja, CEO at ICDX, says the partnership with GTX accelerates the time to market for the exchange’s currency products “tremendously”.
“GTX offers us an efficient means to access liquidity and allows us to support the trading activity of Indonesian institutions and investors,” he says.
ICDX won approval to launch currency contracts in June. At the time, Bank Indonesia, the country's central bank was fighting to support the rupiah as fears over the global economy prompted investors to pull hot money out of the relatively open Asian economy.
ICDX believes the new currency contracts will support the central bank's policy to gather back foreign exchange reserves from export activity.