|Russia’s Sperbank CIS to Automate FX Transactions for Commercial Clients|
Russian financial market participants are portraying an increasing will to provide institutional trading facilities overseas via connectivity of Moscow's executing venues to global liquidity pools, as well as the national government's drive toward elevating the status of the ruble.
In order to achieve sufficient credibility worldwide, the progress must come from within, exemplified by today's announcement that one of the country's large banks, Sberbank CIB, is preparing to launch a marketplace where corporate clients can trade currencies without intermediaries via banking institutions for overseas commercial business.
According to Russian news source RBC Daily, the service is intended for use by institutional investors and banks such as Raiffeisenbank, and is an open platform. An additional application will be the use of the platform by credit organizations, who have displayed a demand for such a development due to an increase in demand for currency conversion on the part of exporters.
According to RBC, Sberbank CIB plans to develop and implement a trading platform for the foreign currency transactions of large corporate clients. In fact, the bank will provide them with a platform for e-commerce on the internet enabling such clients to conduct FX transactions on the live market in real time.
"In terms of functionality, corporate customers of the State Bank which plan to buy or sell currencies, should contact the bank to request a rate, coordinate it and only then make a deal" a source explained to RBC. According to this particular source, in the case of allowing direct access to a company itself, tracking trades on an Exchange in online mode, able to directly bargain purchase / sale of foreign currency. "Since Sberbank provides such a platform, all transactions will take place through the accounts of the Savings Bank. This will increase the turnover of the Savings Bank on currency transactions, "- said the source.
On the Russian institutional market, there are current participants operating in this particular segment, including VTB Capital, PSB (trading online platform PSB-Rates) and Raiffeisenbank (R-Dealer).
The opinions expressed do not constitute investment advice and specialist advice should be sought about your specific circumstances.
Published on our website on March 28, 2014