Dozens of new electronic finance ventures have claimed to be able to revolutionize their market. EBS is one of the very that actually has. When it was established 10 years ago, it brought a level of price transparency on spot rates that had never previously been available.
Now EBS is an essential part of the foreign exchange industry, transacting about $100 billion a day between 750 banks in 38 countries. The network works based on bilateral credit relationships so users view only prices at which they are able to execute.
The screens are very simple. Users fill them up with the currency pairs they want to trade, hit a price to deal, and monitor their own rates all in one place. The platform also handles gold and silver.
Despite its size and reputation, EBS is not standing still as a company. A technology overhaul is expected to be finished by 2005. EBS Trader, the dealer-to-client subsidiary, has recently gone live on Bloomberg. EBS is now planning to use its network and credit management system to launch prime brokerage products.
KA