XTX Markets Heads to China to Price FX Interbank Market

XTX Markets has become the first foreign non-bank market maker to price China’s foreign exchange interbank market (CFETS), according to an announcement made by CFETS on Monday.
In particular, the statement released by the FX interbank market states that XTX Markets has now become a liquidity provider for G10 markets as of today.

“Since January 21, 2020, XTX Markets Limited (XTX) has become the first foreign non-bank institution market maker in the interbank foreign currency market and will provide liquidity to the CFETS foreign currency market,” the translated statement said.
The Bank of China is the prime broker for XTX Markets and the first prime broker on the CFETS system. Specifically, the bank will provide foreign currency-to-primary brokerage services for XTX Markets.
With this development, the pilot project of CFETS foreign currency market broker has been officially launched. The cooperation between the Bank of China, CFETS and is the first for the Chinese domestic forex market and is a huge step forward for the industry in the country.
Furthermore, CFETS said in the release that the addition of XTX has: “injected new liquidity into the market for interbank foreign currencies and further enhanced the price competitiveness of the trading centre platform”.
In the press release, CFETS said that the agreement between the interbank market, XTX and the Bank of China will have a positive effect and further enrich the inter-bank FX market transaction model. It will also promote the integration of the domestic forex market with the international market.
Although XTX has not commented on the announcement, the company has shared an article written by Profit & Loss on its LinkedIn page regarding the development.
Brokers capitalise on China’s opening market
As China continues to open its financial markets, more and more brokers are heading to the country in order to capitalise on the growing opportunities the industry can offer.
As , Saxo Bank has been making China its priority of late. Namely, the multi-asset broker signed an agreement with Geely Sweden Holdings AB, where the two parties will establish a technological joint venture in China.

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