e-Forex looks at how politics, market electronification and increased access are helping to build liquidity in EMFX. Joe Morgan from e-Forex talks with JV (R5), Stamos Fokianos (Credit Agricole), Joe Nash (BNP) and Joe Conlan (FC Stone)

Some of JV’s comments – 

EMFX is all about politics,” says Jon Vollemaere, the London-based chief executive officer at R5FX, an electronic marketplace for EMFX and electronic non-deliverable forwards. “The potential of a trade war brings more attention to the whole area which is actually a good thing. More attention typically creates more liquidity and more participants at the same time.” 

“From a speculation point of view things are more exciting and more active than euro dollar. Spreads are wider, markets are more fragmented so there are more trading opportunities.” 

“The drivers behind INR for example are not the same as CNH or RUB. INR can be driven by six Indian guys in a room with an algo operating out of Singapore or Dubai. Half the INR market is outside of India. EM is very different to the G10 in every way.”

Talking about R5 combining bank flows with buy-side institutions hedging equity or bond exposures  – “It creates a deeper pool of liquidity and that’s good for everyone” 

“Our job for the last two years has been getting users off the phone and on to the screen” 

The article is available at https://e-forex.net/articles/jun-2018-boosting-liquidity-and-best-execution-for-emerging-market-currencies.html