Hotspot live on Bloomberg

The price feed covers all of the 15 currency pairs available on Hotspot FXi’s platform.

"This deal partners us with the premier name in the space," said Hotspot FXi’s chief executive officer John Eley. "It helps us to get our name and our data out there and makes people realise how valuable it is. It is a large step forward for us."

For Bloomberg, the link-up is its latest effort to expand FX coverage. The trading technology and market-data firm, best known for its fixed-income expertise, announced a link-up with EBS in May to host its conversational spot-dealing platform, EBS Trader (FX Week, May 26).

Hotspot FXi expects the deal to bring a much broader range of potential new customers to its platform. Bloomberg has 260,000 users at a wide range of customers including corporates, banks, hedge funds, commodity trading advisers and real money funds, said Eley. "Bloomberg has an astounding reach and people rely on the platform for a variety of services. It is going to give us a reach far beyond what we have now, which is people focused on trading the spot market." Hotspot FXi is not targeting any particular client segment through the deal, he said. Rather: "we will gain a broader audience across all asset classes and customer classes."

However, because it shows Hotspot FXi’s live executable prices, the feed will be particularly attractive to customers using data for modelling purposes, said Eley. "A lot of data is indicative. That is valuable for many purposes, but if you’re going to build a model or do detailed analytics, it is far more useful to know prices where people actually deal."

Bloomberg users not already using Hotspot will not be able to click-through to deal on the platform initially. They will have to contact the platform separately. But this may change: "There are a lot of things we could do with Bloomberg over time and we have ongoing discussions exploring different areas," said Eley.

It has been a successful year for Hotspot, said Eley. "We’ve gone from being a platform really interesting in theory to being a large robust marketplace."

One year on from launch, Hotspot FXi’s volumes are going up 30% month-on-month. "Our volumes and execution are growing incredibly rapidly and our customer acquisition is growing at a similar rate," said Eley. Like many of the other e-FX trading platforms, Hotspot FXi is seeing record volumes this quarter.

Eley declined to give specific figures but said the firm sees "as much" spot volume as "any of the multi-bank FX platforms out there" -- putting it somewhere between $4 billion and $7 billion, according to e-commerce sources.

The platform now has seven banks acting as market-makers and 12 prime brokers: ABN Amro, AIG, ANZ, Bear Stearns, BNP Paribas, Cargill, Dresdner Kleinwort Wasserstein, Royal Bank of Scotland and Fimat. The remaining three institutions do not wish to be named.

Eley claims Hotspot FXi now has "10 times as many" clients as a year ago.

It will announce further partnerships over the coming months, he said. "A major initiative next year will be expanding market-data and transactional capabilities through joint ventures, partnerships and license agreements," said Eley. "We are engaged in discussions with leading market-data and non-FX trading platforms -- there will be a lot of deals next year which will allow all market participants to access our markets in an easier and more seamless fashion." This will also add to Hotspot FXi’s deal with Cognotec, which added a link to the platform to the latest version of its AutoDeal+ trading solution (FX Week, October 13).

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