(Apr 25): Singapore is grabbing a sub-second opportunity to win a bigger slice of the world’s US$5.1 trillion-a-day foreign exchange market.
The Southeast Asian nation is encouraging major foreign-exchange players to build systems in the country that would remove the sub-second delay caused by routing trades via Tokyo or London. The move is part of a plan to expand the island’s overall currency-trading industry, said Monetary Authority of Singapore’s Benny Chey. UBS Group AG and Citigroup Inc. have already set up pricing engines on the island and MAS hopes to bring in six to eight more big players, including non-banks and multi-dealer platforms.
“We are positioning ourselves to be plugged in to growing Asian wealth,” said Chey, assistant managing director of development and international at MAS. “As this large macro shift in Asian economic growth and rising Asian wealth takes place over the medium term, we are trying to build out the efficiency of our ecosystem” to close the gaps with other trading hubs, he said.