Global Prime, an Australian-based online trading provider, has revealed exclusively to Finance Magnates that it has partnered with BidFX in order to expand and centralise its interbank funding market.
BidFX is an institutional foreign exchange solutions provider. Under the partnership announced this Wednesday, Global Prime has selected BidFX’s solution to streamline direct access to tier-1 banks who make up the interbank market. This is done via the BidFX workflow architecture.
According to the statement seen by Finance Magnates, the solution has reduced overnight funding rates (swaps) for the Australian firm’s retail and institutional clients by more than 50 per cent.
The partnership has been driven by increasingly fragile liquidity in the funding markets, which has resulted in volatility in swap points. Because of this, both retail and institutional traders are having to deal with more expensive funding of overnight exposures.
Under the agreement, through BidFX’s solution which streamlines direct access to tier-1 banks, Global Prime receives visibility and access to the best overnight rates via a centralised platform, the company said today.
Global Prime and BidFX partnership active since April
According to Global Prime, the setup with BidFX has been live since April of this year. During this time, the average spread (bid/ask swap rates) have fallen by more than 50 per cent.
“Global Prime’s decision to partner with BidFX reinforces our unrivaled capabilities in meeting clients continued demands as well as providing improved efficiencies and significant cost savings to end clients,” added BidFX head of Australia Sales, David Catterick.