LSEG's FXall to Launch Split Risk Service for Credit-Intermediated FX Forwards
The London Stock Exchange Group's FXall trading venue is launching "Split Risk," a service that unbundles credit risk from market-making in FX forwards for buy-side clients. It allows users to construct outright forwards by combining spot and FX swap trades, potentially with different counterparties. This innovation aims to improve execution flexibility, risk management, and price access by separating market and credit risk.
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LSEG's FXall to launch credit-intermediated FX forwards service
The London Stock Exchange Group's (LSEG) foreign exchange trading venue, FXall, is preparing to launch a new service called Split Risk. This service will separate credit risk from market-making in FX forwards trades with buy-side clients. It allows buy-side users to enter outright forwards by trading a combination of spot and an FX swap, with the two elements potentially traded with different counterparties. This unbundling of market and credit risk aims to give buy-side firms access to the best spot and swap prices to create forwards, improving execution flexibility and risk management.
HomeLSEG's FXall to launch credit-intermediated FX forwards service
The London Stock Exchange Group's (LSEG) foreign exchange trading venue, FXall, is preparing to launch a new service called Split Risk. This service will separate credit risk from market-making in FX forwards trades with buy-side clients. It allows buy-side users to enter outright forwards by trading a combination of spot and an FX swap, with the two elements potentially traded with different counterparties. This innovation enables the unbundling of market risk and credit risk, allowing buy-side firms to access the best spot and swap prices to create forwards. The service aims to improve efficiency and flexibility in FX forwards trading.
HomeLSEG's FXall to launch credit-intermediated FX forwards service
The London Stock Exchange Group's (LSEG) foreign exchange trading venue, FXall, is preparing to launch a new service called Split Risk. This service will separate credit risk from market-making in FX forwards trades with buy-side clients. It allows buy-side users to enter outright forwards by trading a combination of spot and an FX swap, with the two elements potentially traded with different counterparties. This unbundling of market and credit risk aims to give buy-side firms access to the best spot and swap prices to create forwards, improving execution flexibility and risk management.
HomeLSEG's FXall to launch credit-intermediated FX forwards service
The London Stock Exchange Group's (LSEG) foreign exchange trading venue, FXall, is preparing to launch a new service called Split Risk. This service will separate credit risk from market-making in FX forwards trades with buy-side clients. It allows buy-side users to enter outright forwards by trading a combination of spot and an FX swap, with the two elements potentially traded with different counterparties. This unbundling of market and credit risk aims to give buy-side clients access to the best spot and swap prices to create forwards, improving execution flexibility and risk management.
HomeLSEG's FXall to launch credit-intermediated FX forwards service
The London Stock Exchange Group's (LSEG) foreign exchange trading venue, FXall, is preparing to launch a new service called Split Risk. This service will separate credit risk from market-making in FX forwards trades with buy-side clients. It allows buy-side users to enter outright forwards by trading a combination of spot and an FX swap, with the two elements potentially traded with different counterparties. This unbundling of market and credit risk aims to give buy-side clients access to the best spot and swap prices to create forwards, improving execution flexibility and risk management.
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