CSFB Launches FX Web Trading In Further Drive To Use Internet

NEW YORK--Credit Suisse First Boston (CSFB) has introduced a new FX module to its PrimeTrade online dealing platform for its corporate clients.

While other developers have held back new launches until after the new year, the module went live on PrimeTrade in December. "Time to market is king in the e-world, and we were confident that the system was ready to go," says Philippe Buhannic, head of global listed derivatives and electronic trading at CSFB.

The FX module underwent a year of internal development before its launch and forms part of CSFB's wider e-commerce strategy on the generic PrimeTrade platform, which includes web trading in foreign exchange, commodities, futures, and fixed-income derivatives.

The bank claims the new package represents a leap forward in online trading, providing a so- called "three-dimensional service" running from the front through to the back office. The module operates across products, geography and combines trade execution and clearing.

"Key for us is that the FX trading system integrates across products and time zones," says Buhannic. "It provides a one-stop shop for clients, who can access the system from anywhere in the world, be they in an office or travelling."

Buhannic says the global platform offers a wide variety of potential trades with spots, forwards and swaps in all the major currencies and crosses and with access to both automatic and manual pricing.

"The new module is user friendly. Any type of customer can execute almost any possible type of transaction," he says.

One of the major innovations of the new system, according to Buhannic, is its speed, ease of use and multi-functionality. Clients may execute trades and clear them on the same screen, and also check their prices. The system also uses an online credit-checking process.

"The system is fluid and can handle large trade volumes," he says "The screen quality is high and having everything on one screen for trading makes the system easy to use." The system is backed up by customer support desks in the three trading time zones.

The project was, according to global head of FX Phillip Vasan, inspired by customer demands: "Clients want three things," he says. "Speed and quality of pricing, operational ease and value-added features."

One such value-added feature is access to CSFB's FX analysis and research from Vasan's team, which is available via a hotlink from the main site.

The system is starting to prove successful. "We have seen volumes growing steadily during a period where markets were otherwise quiet," says Vasan. "The percentage of trades going through the system which would previously have gone by phone is high. We expect to see a lot of growth as the markets speed up."

The new system is part of a broader family of electronic trading products in development. Vasan says that further product offerings can be expected in the future.

The PrimeTrade system was launched in June 1998 as an internet-based transaction system for global exchange-listed derivatives contracts and forms part of CSFB's range of electronic trading products which includes PrimeClear, PrimeRisk and PrimeFund.

CSFB is yet another major FX player to expand its internet usage to enhance its services to its corporate clients. Last November, Citibank went live with its internet FX trading and research service CitiFX Interactive (FX Week November 22, 1999).

CitiFX provides five services: online price discovery and execution for spot and forward transactions; a range of information services including customer specific trading strategies, research and technical analysis; access to a series of analytical tools; a series of process-efficiency tools to provide on-line confirmation, revaluation and matching; and access to the global services provided by Citibank's worldwide network of branches.

Citi is also planning further enhancements to the service this spring. At the time of CitiFX Interactive's launch, global head of FX Guy Whittaker said: "We expect to offer in the new year some pricing tools for currency options and the ability to trade them."

Several other players also joined the web-race last year with full trading and research services including Dresdner with its "Piranha" and "Gator" offerings and NatWest GFM's service.

American Express Bank, ANZ Investment Bank, Barclays Capital, Royal Bank of Canada and State Street were among others that offer web-based services.