The Hindu Business Line : Direct forex trading: YES Bank joins the band

Real-time trading
Customer can also chat with bank dealer
Bank will manage risk of client trading in forex
Union Bank, StanChart offer similar facility

Mumbai June 15 More corporate entities can now conduct forex transactions directly instead of instructing their banks to do so.

This follows YES Bank announcing the launch of direct foreign exchange trading service for corporate clients.

Union Bank and, more recently, Standard Chartered Bank had earlier announced such a facility for their clients.

Reuters tie-up

Mr Tom Roche, Global Head of e-commerce, Standard Chartered in Singapore, said in a release then: "For large sophisticated clients such as Reliance it is important that we can offer the efficiency of electronic FX trading using existing desktop systems such as Reuters."

"We are confident that customers using our online dealing services will experience real efficiency benefits from adopting electronic execution of their interest rate and FX exposures."

All the three banks have signed up with Reuters for Reuters Trading for Foreign Exchange (RTFX) - an electronic trading platform.

Through this service, a corporate client can view the foreign exchange prices offered by various banks and execute a deal for sale or purchase, as the case may be.

"The customers will also be able to chat with the bank dealer," said Mr Ajay Mahajan, Group President, Financial Markets, Institutions and Investment Management, YES Bank.

The bank has 500-550 corporate customers. There is no additional cost to the customers for using the system.

A senior Union Bank official said: "We started offering the service on a trial basis to a few corporate clients and the response has been good so far. In the next week or 10 days, we will start marketing this product to other corporate clients."

YES Bank will manage the risk arising out of the portfolio of the client who trades in foreign exchange similar to what was done earlier, Mr Mahajan said.

The bank plans to distribute the foreign exchange prices to customers across 40 branches.

He added that accuracy, transparency and prompt execution were some of the benefits of electronic liquidity over telephonic market.

The portal will provide 24-hour service to the customers. "The bank will offer trading in dollar-rupee pair and also in other currency pairs," Mr Mahajan said.

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