LSEG’s FXall to launch credit-intermediated FX forwards service
Split Risk to allow buy side to tap best spot and swap prices to create forwards, and unbundle market and credit risk
The London Stock Exchange Group’s (LSEG) foreign exchange trading venue, FXall, is preparing to launch a service that separates credit risk from market-making in FX forwards trades with buy-side clients.
FX Markets understands the service – Split Risk – will allow buy-side users to enter outright forwards by trading a combination of spot and an FX swap. The two elements can be traded with different parties, allowing users to get best execution price on both legs.
For the swap leg, the workflow
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