Goldman to Build Out FX Trading Infrastructure in Singapore

Goldman expects its FX pricing engine in Singapore to be live in the first quarter of 2021 across deliverable and non-deliverable currencies.

Goldman Sachs has announced that it will build its fourth electronic FX pricing engine in Singapore to deliver low-latency execution for its clients.

The move comes as MAS (Monetary Authority of Singapore) seeks to develop Singapore into the top FX trading centre in the region.

JP Morgan, Standard Chartered, UBS, Citi, BNP Paribas, Jump Trading and XTX Markets have already built FX trading infrastructure in Singapore, while BNY Mellon, Deutsche Bank and Barclays have confirmed plans to do so.

Specifically, MAS wants pricing and matching engines to be based in Singapore to avoid the time lag for prices to be matched in London, New York, or Tokyo, where Goldman also has FX pricing infrastructure already in place.

“Goldman Sachs is at the forefront of innovation in Asian currencies,” said David Wilkins, global head of electronic FX distribution at Goldman Sachs.

“This is particularly true in non-deliverable forwards (NDFs) where we maintain a market leading position, having been the first bank to develop an NDF execution algo for our clients. It makes perfect sense for us to be part of this initiative and to further develop the FX market ecosystem in Singapore, and Asia as a whole.”

The FX trading engine is expected to go live in the first quarter of 2021 across deliverable and non-deliverable currencies.

“Goldman Sachs’ decision to set up its regional FX trading engine in Singapore and launch the next generation NDF execution algo will enhance the depth and sophistication of the Asian FX market,” said MAS executive director Gillian Tan.

“We welcome this partnership with Goldman Sachs, which is aligned with our strategy to grow a critical mass of players and liquidity for APAC buy-side players to gain efficient pricing and execution, and strengthen Singapore’s standing as a global FX centre.”