The race to redefine FX trading is on. According to the recent Coalition Greenwich report, multi-dealer platforms (MDPs) are poised to overtake single-dealer platforms (SDPs) in spot FX trading in 2025 – a stark reversal of recent years where SDPs dominated. 

Amid these changes, banks need to adapt so they can meet their clients wherever they are and deliver on best execution requirements. To get ahead of the competition, banks need to upgrade their technology to enable faster price discovery, bespoke price creation and improved risk management. At the same time, we’re seeing more sophisticated buy-side firms utilising API first architecture to directly embed banks’ services and functionalities into their own workflows, creating new opportunities for dealers, provided they have the right technology.  

The message is clear: future success hinges on mastering MDP, SDP and API trading ecosystems. The key lies in leveraging venue-neutral, multi-channel technology to build a robust distribution platform. From there, banks can focus on delivering a unique trading experience tailored to their clients – on any platform, in any environment. 

Mark Suter, executive chair, Digital Vega 

In 2025, we expect the see the FX options market automate further, with more regional and private banks implementing workflow automation technology solutions. As their clients want to trade electronically and trade sizes reduce, many banks are having to implement technology to manage a larger volume of price requests and more tickets to process. A key focus for Digital Vega in 2025 is to continue to roll out our white label electronic platform to client banks. This increases workflow efficiency and capacity, and also allows banks to price trades themselves or source prices from our multibank platform, which enables increased currency coverage. 

Next year will also see the full production launch of our FX options CLOB. We have spent a long time developing the platform and conducting client testing but held back from a full launch until we could rely on deep liquidity on day one. Now we have most of the main trading firms connected we expect to launch in early 2025. As the CLOB makes interdealer trading more efficient we think that the whole of the FX options market will benefit from increased liquidity and overall volumes will grow as a result. 

Stephan von Massenbach, chief revenue officer, DIGITEC 

The FX swaps market is migrating to electronic channels, and we expect the pace of change to continue through 2025. Clients want to trade FX swaps in multiple currencies, and tenors beyond overnight and tom-next, and banks will only be able to service clients efficiently by implementing scalable technology solutions, where workflows are largely automated – in data, pricing, distribution, and settlement. Also, the velocity of the underlying market has increased which means that banks using Excel to manage their FX swaps books are now turning to technology solutions to keep pace. SaaS technology deployed in the cloud has reduced the investment required to provide accurate and fast FX swaps pricing. 

Interdealer FX swaps trading, which is dominated by the broker market, has begun to migrate to electronic venues, like 360T SUN and LSEG Forwards Matching. We expect more volume to migrate to electronic channels in 2025. 

David Mercer, chief executive officer, LMAX Group 

The foreign exchange (FX) market remains a cornerstone of global trade, yet its pace of innovation lags other areas of capital markets. Despite representing the lifeblood of international economies, significant portions of the market remain untouched by the latest technology and innovation. This leaves ample opportunity for modernisation through blockchain technology as we see increasing fusion between TradFi and decentralised finance.  

Simplified and automated solutions could transform FX, enhancing global price discovery and market access. Looking ahead, there is enormous potential for decentralised models to reshape FX as we know it. Tokenisation would facilitate more dynamic and transparent trading, addressing inefficiencies and increasing participation from diverse players. As sovereign nations strive to maintain control over their currencies, FX innovations can bridge the gap between national interests and meet the demand for a seamless global marketplace. 

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The new offering will allow buy-side participants to use existing OTC workflows on Digital Vega’s multi-bank platform Medusa to request quotes and trade blocks of FX options on futures. 

“Enabling customers to negotiate and trade risk-transfer blocks via Digital Vega’s Medusa platform is an exciting development in the electronification of the FX options market,” said Chris Povey, executive director and head of FX options at CME Group. 

“This partnership lowers the barriers to entry for buy-side clients looking to gain the margin and operational benefits of our centrally cleared FX options by allowing them to use existing OTC workflows and lean on OTC relationships. In addition, clients could gain access to new liquidity given there is no requirement for bilateral credit relationships.”

Digital Vega’s connectivity, GUI and workflow technology will be leveraged by users to request prices in CME Group’s centrally cleared FX options from multiple liquidity providers in competition. 

These options can be more margin efficient versus traditional OTC options for those subject to uncleared margin rules, claimed the two firms in a statement.

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 “Our new service provides liquidity access for more clients and market makers to trade with each other without having to establish new bilateral credit agreements, which we expect will result in increased liquidity for the market as a whole,” said Mark Suter, executive chairman and co-founder at Digital Vega.

“We are encouraging clients to onboard to this service now so that they can fully test the system before they begin trading.”

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The platform will offer clients trading capabilities across options, spot, forwards, swaps, and NDFs in response to increasing demand from buy- and sell-side users looking to access the FX market using trading technology solutions.

“In 2020, we have grown significantly in Asia, adding a Singapore office and extending our client relationships in the region,” said Mark Suter, executive chairman, and co-founder at Digital Vega.

“During this time, we were introduced to Spark Systems by a firm wanting a single platform to access the FX market. We identified significant synergies, as our services are complementary and help to address the growing demand for increased trading efficiency.”

At the beginning of last year, Digital Vega hired JP Morgan’s former global head of FX options, Rob Wemyss, to support its product development and expansion strategy.

Digital Vega and Spark Systems said that increased efficiency was a key industry theme for this year, with many participants seeking solutions on how to improve performance by automating FX trading.

“Working in partnership with Digital Vega, we have a common goal to provide clients with a best of breed FX trading platform,” said Jason Wang, COO at Spark Systems.

“As Singapore strengthens its position as APAC’s trading hub and FX trading continues to grow, we are seeing significant interest from financial institutions in the region for a holistic trading solution.”

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Rob Wemyss has been appointed head of business development and non-executive director, tasked with supporting product development and the firm’s expansion strategy. He has worked as global head of FX options at JP Morgan since 2015, having led the business for Europe, the Middle East and Africa prior to that.

Digital Vega’s flagship multi-dealer Medusa platform looks to help institutional clients navigate the shift in over the counter (OTC) and derivatives markets to more electronic trading models.

“Transparency, automation and workflow efficiency are driving the market increasingly towards trading FX Options electronically. Digital Vega is already considered the market leader, and by investing in new products and services we expect to capture future market growth,” Wemyss commented on his new role.

In July, Digital Vega onboarded Standard Chartered as a liquidity provider to the platform. Standard Chartered actively trades more than 100 currencies, and prices a range of emerging markets and G10 currencies. More recently, Digital Vega hired the former head of FX options trading in Asia at Standard Chartered, Simon Nursey, and the former head of EMEA FX and emerging markets at Nomura, Asa Attwell. 

“During 2020 we aim to cement our leading position in multi-dealer FX Options trading by adding more liquidity providers and clients, increasing automation in our Vanillas platform and launching a new Exotics service,” said Mark Suter, executive chairman and co-founder at Digital Vega. “We are delighted to welcome Rob to Digital Vega, where his unparalleled industry experience and senior level contacts with liquidity providers and clients will help to maximise our growth.”

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FX options electronic trading firm Digital Vega has made two senior hires from Standard Chartered Bank and Nomura to support its expansion efforts.

In a statement, Digital Vega confirmed that it has hired Simon Nursey, previously head of FX options trading in Asia at Standard Chartered, as head of Asia. Nursey had been with Standard Chartered since 2012 and prior to that spent 17 years with BNP Paribas as global head of currency options trading.

Asa Attwell also joins Digital Vega as head of product development from Nomura where he was formerly head of EMEA FX and emerging markets. Similar to Nursey, Attwell previously spent 16 years working at BNP Paribas in various FX options roles, most recently as head of G10 FX trading.

Alongside Nursey and Attwell, Digital Vega has appointed Laura Winkler as EMEA relationship manager. She joins the FX options trading specialist from Luxoft Financial Services, and has formerly worked at State Street’s Currenex business and at Thomson Reuters where was an FX relationship manager.

“With over 40 years combined FX Options experience, Simon and Asa have unrivalled market knowledge. Their extensive list of contacts, combined with Laura’s comprehensive FX relationships in Europe will help to drive our future growth,” said Mark Suter, executive chairman and co-founder of Digital Vega.

He continued that based in Singapore, Nursey will head up Digital Vega’s business development across the APAC region, while Attwell oversees delivery of its new FX options central limit order book, with a focus on the firm’s market data services.

“By connecting to new liquidity providers and clients in Europe and Asia, enhancing our vanillas platform and launching a new exotics service, Digital Vega can build on its leading position in electronic FX options trading,” Suter added.

Digital Vega recently onboarded Standard Chartered as a liquidity provider, expanding liquidity across its multi-dealer electronic trading platform, known as Medusa. The Medusa platform aims to facilitate its institutional clients as increasing numbers of over the counter (OTC) and derivatives markets migrate to more electronic trading models.

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Digital Vega said that the addition of Standard Chartered as a liquidity provider on its multi-dealer electronic trading platform, known as Medusa, will bring depth to its clients, particularly in emerging markets. Standard Chartered actively trades more than 100 currencies, and prices a range of emerging markets and G10 currencies.

“As more of our clients adopt electronic trading it is important that we serve them via their preferred channels on a global basis, which includes Digital Vega’s Medusa platform. This is particularly important as we continue to grow our FX Options business,” said Alex Axentiev, managing director at Standard Chartered. “We have been impressed with Digital Vega’s platform from the outset and look forward to continuing our close working relationship in the future.”

Digital Vega’s Medusa platform aims to facilitate its institutional clients as increasing numbers of over the counter (OTC) and derivatives markets migrate to more electronic trading models. The firm is currently expanding to support new asset classes and add new financial products to its Medusa trading platform.

“The FX options market continues to migrate to electronic trading channels, with the pace of change accelerating, due to regulation, transparency and increased efficiency. Clients are increasingly asking for help to evidence best execution, and as the leading multi dealer platform, we are able to do just that,” said Mark Suter, executive chairman of Digital Vega.

“We are delighted that Standard Chartered has joined Medusa, bringing a strength and depth in emerging markets to our clients, and we look forward to working with them on our FX options platform, and a range of planned new services.”

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