Citibank, long world leader in foreign exchange, has agreed to place client business via FXConnect, the electronic forex system created by State Street. The Boston-based bank announced today that Citibank will deal on behalf of clients via the multi-bank electronic foreign exchange trading system State Street provides via its Global Link network. “Several of Citibank’s key investor clients who deal on the FX Connect platform have expressed their desire for a dealing relationship with us through this channel,” says Richard Moore, head of Global Foreign Exchange for Citibank. “This has been the driving force in our decision to offer liquidity through FX Connect and we look forward to participating actively.” Simon Wilson-Taylor, head of Global Link at State Street, cannot conceal his pleasure. “We’re delighted that Citibank will participate in FX Connect,” he says. “With the inclusion of Citibank, FX Connect is now able to meet its clients’ total needs for access to all their preferred counterparty banks.”
FXConnect is now over five years old, the first live trades passing through as long ago as 13 August 1996. It did not attract the crucial ingredient of success – liquidity from other banks – until March 2000, when Deutsche Bank started putting business through FXConnect. Among the now 33 banks participating today on FX Connect are ABN Amro, Bank of America, Bank of Montreal, Barclays Capital, Bear Stearns, Brown Brothers Harriman, CIBC World Markets, Commonwealth Bank of Australia, Credit Suisse First Boston, FleetBoston Financial, National Australia Bank, Prudential Securities, Royal Bank of Canada, Royal Bank of Scotland, Scotia Capital, Standard Chartered, TD Securities, Ulster Bank, Westpac Banking Corporation, Citibank, Credit Agricole Indosuez, Deutsche and Societe Generale. According to a recent Tower Group report, FX Connect now owns over three quarters of the online FX market.