Interdealer broker Icap is introducing e-trading in platinum and palladium on its EBS dealing system in response to market demand and soaring volumes in precious metals trading.
Platinum will be traded on EBS against the US dollar as XPT/USD and palladium as XPD/USD. Both will be traded as spot unallocated 99.95% purity, on Loco Zurich with minimum tradable amounts of 500 ozs, incremented in units of 500 oz.
Icap says e-trading in precious metals on the EBS platform was up 85% during 2006 with the trend continuing into 2007. The broker says enhanced technology, including prime brokerage relationships facilitated through EBS, has brought new precious metals trading organisations from both emerging and developed markets to the FX market, from across the world.
An API-based trading capability for precious metals was recently added to EBS which has enabled algorithmic or 'black box' trading for banks and non-banks, including hedge funds, and added incremental liquidity to the market.
Darryl Hooker, precious metals manager, EBS, says: "We've seen a net increase in the number of counterparties e-trading precious metals on EBS and are responding to their needs to access the same liquidity and pricing in both platinum and palladium.
"Precious metals traders universally regard price and liquidity as being of paramount importance and we offer single screen access to global counterparties and exceptional liquidity, so they can watch and trade the major global currencies on the same screen."
Icap acquired EBS last year for £413 million. The electronic foreign exchange and commodities trading platform was established in 1993 by a consortium of banks.