FX Week, by Eva Szalay

In July, a little over six months since the deal, R5FX executed its first live trades and subsequently added the Brazilian real, the Chilean peso and the Colombian peso in October, followed by the Indian rupee in November. Unsurprisingly, the platform that has five core currencies – the rand, real, renminbi, ruble and rupee – has China firmly in its sights for 2016.

“The theme for next year is China, China and China. We’ve been quietly establishing ourselves as the thought leader for China trading for more than 2.5 years now,” says R5FX chief executive Jon Vollemaere. “The other major theme for next year is the drive for automation in emerging markets.”

He notes that while talk of market electronification is old news for G10 currencies, emerging market trading is still dominated by voice and characterised by a disjointed market microstructure, as well as patchy access.

“Everywhere we go, talking with both banks and non­banks, people are looking to increase opportunity and efficiency in emerging markets. That means changing or updating their existing channels. Don’t think like a black cabbie now that Uber is available,” he says.

R5FX will continue to add new currencies and it plans to extend its model to more jurisdictions, he says: “We need to complete connection to all of our early adopters and add more clients, while continuing our focus on delivering innovation. We will focus on delivering the best possible service to our customers to allow them to cut out more costs from their trading.”

“Of course, if I had to pick just one priority it would be to grow volumes, which are already better than many expected, including ourselves,” he concludes.

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