State Street Corporation (NYSE: STT) announced today it has received approval from the UK's Financial Conduct Authority (FCA) to operate its FX Connect and Currenex platforms as multi-lateral trading facilities (MTFs) for foreign exchange within the jurisdiction of MiFID II.
Both platforms will now operate as MTFs and be upgraded to be compliant with MIFID II upon implementation in January 2018.
For institutions that fall under the MiFID II regime, "financial instruments" can only be traded on the new MTFs; however, the operators of Currenex and FX Connect located outside of MIFID II's jurisdiction (Currenex Inc and FX Connect LLC respectively) will not be implementing similar restrictions and these platforms will continue to offer the same trading facilities as they currently do.
Existing customers for both platforms will be contacted to discuss the process and eligibility requirements for onboarding to the MTFs.
David Newns, global head of Currenex and SwapEx, as well as EMEA head of GlobalLink at State Street Global Markets said: "We are delighted to have received these approvals from the FCA. The Currenex MTF and FX Connect MTF are both based on the award-winning technology of their parent platforms, and as the European FX market becomes more regulated under MIFID II it means we can continue to support the execution and trading operations of our clients."
Currenex is a provider of high-performance technology and deep pools of liquidity to professional FX traders. The platform allows a diverse client base of global banks, corporates, hedge funds, investment managers and brokers to access and aggregate streaming pricing from more than 60 banks, non-banks and liquidity from our proprietary anonymous liquidity pool FX Trades™.
FX Connect is an FX execution venue for institutional trading firms that require efficient management of multiple portfolios, best execution and effective operational risk. From pre to post-trade, FX Connect addresses their complex needs in one easy-to-use system that supports their FX relationship trading.