ICAP’s electronic brokerage business EBS has today that EBS Liquidity Optimization has signed 15 customers globally in 12 months, deepening the company’s relationships with banks in all regions of the world. These customers are currently in different stages of on-boarding, with some already using the tools with impactful results.
With the battle for supremacy among interdealer brokers and large scale electronic trading platforms, this is a significant achievement for EBS, a firm which began to take on peers such as FXall two years ago when it introduced relationship based trading in which liquidity became disclosed.
EBS Liquidity Optimization helps regional banks increase their profitability and efficiency with tools that manage pricing provided to clients that reflect the bank’s appetite, and also facilitate effective risk management.
EBS Price Optimizer is based on two unique pricing algorithms, one of which is the continuous pricing algorithm which enables banks to be profitable in fast moving, liquid markets, servicing their clients in competitive multi-bank environments, with the second being the discontinuous pricing algorithm which solves the challenges of banks wishing to make streaming pricing available to customers in a wide range of local markets.
Further functionality includes EBS Yield Analyzer which provides accurate real-time reporting on every client trade that allows banks to price and manage the risk they receive more profitably. EBS Yield Optimizer enables banks to bring these features together with smart risk routing so as to maximise the yield from risk that the bank receives from its clients.
Justyn Trenner, Head of EBS Liquidity Optimization comments: “Our regional bank customers need smart and profitable price-making tools at reduced cost to allow them to retain and grow their client franchise. We provide sophisticated algorithms, proven technology and analytical tools that allow regional banks more flexibility and control, ensuring profitability in the prices they make and the risk they manage. I am thrilled by the progress the EBS Liquidity Optimization business has made in the last year and the positive feedback we’ve received from our customers.”
Commenting on the benefits, Marc Burgheim Global Head of FX and IRD at BayernLB, said: “By using EBS Liquidity Optimization we’ve been able to redesign our pricing and risk management models and have seen a significant increase in both average daily volumes and profitability since we went live a year ago. We’ve also benefited from increased control, which has led to improved risk management and better service for our clients. Coupled with the EBS Direct solution, we’ve been able to price and execute in a powerful and highly competitive environment that has benefited our business greatly.”
For the official announcement from EBS, click here.