ICAP is all set to launch its new platform for electronic trading in the FX market. The new platform goes by the name "EBS Select" and is set to commence live use. Although, it compromises a beta version with the first trade to take place on the 25th of March.
EBS Direct is majorly different from its existing platform, which offers a relationship-based disclosed liquidity. EBS Select on the other hand operates as a non-disclosed, segmented, bilateral liquidity pool. EBS Select represents the latest addition to ICAP's EBS full product suite, with three segments providing three different solutions. These solutions are constituted of: EBS Market, EBS Direct and its latest developement EBS Select.
From the press release of ICAP the following statement have been derived from the Global Head of EBS Direct: “The counterparties that a liquidity consumer can trade with via EBS Select are different from those on EBS Direct, thereby offering a unique trading and execution experience.”
So far, there are six different liquidity providers and thirty liquidity consumers in the new EBS Select Beta version. The prices will therefore be distributed through data centres to local clients via centres in London, Tokyo and New York.
As ICAP launches new EBS Platform, it is clear that ICAP`s objective is to meet growing demand for non-disclosed liquidity. At the same time the company will maintain the offering of trades through permissioned and segmented liquidity, whilst including EBS Prime bank's types of credit lines.