The world's biggest bank players in currency trading have delayed plans to launch their own dealing system until regulatory uncertainty is settled, according to Dow Jones.
Details of the venture, dubbed FXPure, first leaked late last year, with the backers, consisting of most of the 10 biggest bank players in global forex trading, sounding out technology providers.
The project is a reaction against a decision in 2005 to open up the biggest FX dealing system, Icap-owned EBS, to non-banks such as hedge funds and high-frequency traders. This has seen the banks lose their dominance in lucrative global FX dealing to nimbler, tech driven competitors.
According to Dow Jones, citing sources, the banks had planned to announce FXPure within the next two months. This has now been put back in the hope that the regulatory environment will become clearer in the next few months. The project is "definitely not dead" one person told the wire.
Banks Delay Secret Forex Trading-System Plans - Sources - Dow Jones