360T and Banco Monex establish local credit hub for MXN and other currencies

Deutches Borse Group’s 360 Trading Networks (360T) has announced that in a new partnership with Banco Monex, 360TGTX is establishing the first local credit hub for MXN and other currencies, enabling a new generation of anonymous trading.

This partnership will cater to every possible trading style without compromising the principles of low impact, low latency execution.

Today, 360TGTX is part of 360T’s ecosystem of over 2,200 buy- and sell-side clients, which are well diversified by geography (over 75 countries) and segment (Tier 1 banks / non-banks, Corporates, Asset Managers, Regional Banks, Hedge Funds, Systematic trading firms etc). With Banco Monex as the new local credit hub (CCP), 360TGTX will provide efficient credit intermediation for the local Mexican market whilst also enabling full access to the global liquidity ecosystem across the venue.

Right now, 360T said that many local FX market participants cannot face a wide range of top tier liquidity providers directly due to credit limitations. As a result, they have turned to alternative channels – such as voice brokers, disclosed electronic multibank platforms and single bank portals (SBPs) – to access FX liquidity. These solutions are suboptimal though as they provide access to only a limited number of liquidity providers, meaning that local market participants in Mexico might not be seeing the best FX prices available.

For example: SBPs offer liquidity from only one source where the pricing is not in competition. Voice broking does not solve the credit issue and is expensive and inefficient for many FX transactions, as well as being an opaque execution channel. The limited international credit profile of these local firms means that even on disclosed multibank platforms only a fraction of the LPs will be able to face them as a counterparty.

Banco Monex has excellent credit, meaning that it is able to face off against a broad spectrum of top tier LPs. And even more than this, as a member of CLS the firm is able to act as a credit hub for 360TGTX.

Many of the local firms trading FX in Mexico have an established credit arrangement with Monex so they could utilize Monex as a credit hub to access 360TGTX and the pricing available there. Because 360TGTX is an anonymous trading venue, the LPs pricing there will not see the local Mexican firms or their credit profile and will be able to price them as they would any other counterparty on the platform.

Banks operating in Mexico that have credit arrangements with our other credit hub providers – JPM, Citi, UBS or Standard Chartered – can use them to access 360TGTX. Alternatively, the platform supports direct bilateral credit arrangements if they have the credit available to allow this.

While the solution to this existing credit challenge being proposed by 360TGTX and Monex can help local firms improve and expand their FX trading operations, it also offers multiple benefits to the onshore market in Mexico more broadly. These include: Improved MXN Liquidity, Tighter Pricing, Better Conduct, and Best-In-Class Technology.

The Monex hub is already live with active clients. Once the necessary paperwork is in place, firms in Mexico can begin using it immediately.

360TGTX is a fully managed anonymous trading venue that offers customized liquidity pools for every client, multiple credit hubs and a dedicated in-house liquidity management team that specializes in helping users achieve their execution goals.

21,098 Replies to “360T and Banco Monex establish local credit hub for MXN and other currencies”

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