FX round up: Deutsche poised to enter retail space with new platform
Deutsche Bank is about to launch an entirely new FX trading platform aimed squarely at attracting flow from the retail end of the market.
Well-placed sources say the platform, to be called dbFX, will go live some time in May.
At the moment, it is not clear whether trades from dbFX will be routed through to the bank’s main client facing platform, Autobahn, or whether the risk will be managed entirely separately. However, with Autobahn also used internally by Deutsche’s traders, the likelihood is that the two systems will be linked. Sources say dbFX will be accessible on a 24-hour basis, six days a week, and that it will allow customers to trade on margin.
The entry of Deutsche into the already fairly crowded retail space is bound to have an impact on the existing providers. The marketing manager at one says that he is in some ways surprised that Deutsche has decided to step into the space, but even more surprised that it has taken so long for the big players to target the sector.
“It’ll be interesting to see how it will manage the business from a compliance point of view, what spreads it will quote and the level of margining it will require,” he says. “It’s hard at the moment to make a snap assessment on the impact it will have on our business.