The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Foreign Exchange

More on FXMS

Some commentators have labelled FXMS as a concept that is either five years too late or five years too early. Whichever way, it doesn’t seem to be a profitable concept in 2008.

Back in 2006, when the platform was announced, Reuters said: “Our share of losses, prior to the venture reaching profitability, is expected to be in the range of $20 to $25 million, or £11 to £14 million, with the majority of this being incurred in 2007. Our share of pre-launch start-up costs in 2006, mostly hiring staff and marketing, is expected to be around $5 million, or £3 million. The joint venture is expected to become profitable during 2008.”

At the same time, Tom Glocer, Reuters’ chief executive, said: “In short, Reuters will own 50% of what I believe will be the leading marketplace for the world’s most actively traded asset class.”

Switch forward to March 2008 and Reuters’ preliminary results show that it lost £7 million on FXMS in 2007 and the same in 2006 – the total it had anticipated it would spend before the platform reached profitability, which still looks a long way away.

But Glocer remains upbeat. He also suggests the struggling platform will be around for some time yet: “On FXMS, the thing to say is that nothing has changed dramatically. We are doing something very innovative. We continue to believe that we have got a better mousetrap for how to trade FX on a centrally cleared basis.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree