From The Management

A gateway to deep liquidity in Asian NDF markets

6 July 2023

For several years now, non-deliverable forward (NDF) markets across many Asian emerging market currencies have been growing rapidly. As a region, Asia contains the most traded NDF currencies worldwide, including in its fold three of the top four NDF currencies by volume – namely, the Indian Rupee (INR), South Korean Won (KRW) and Taiwan Dollar (TWD). Together, the three currencies account for 55% of total daily global NDF turnover of approximately USD 300 billion, as of 2022 according to BIS*.

Headquartered in Singapore, the largest Asian FX trading centre, the Singapore Exchange (SGX Group) continues to build upon its long-standing reputation as the region’s leading FX market infrastructure and exchange and is perfectly positioned and equipped to bring deep liquidity in Asian NDF markets to its clients.

With its acquisition of BidFX (which was already the largest multi dealer platform for NDFs), joined by the acquisition of MaxxTrader shortly after and with its ECN SGX CurrencyNode (hosted on the SG1 data centre) having gone live in September 2022 including NDFs, the SGX FX franchise now offers an important venue for price discovery and execution along with a complete suite of OTC FX technology solutions that cater to the electronification and automation needs of market participants.

The technology available across SGX FX is market leading and allows clients to access the deepest streaming liquidity in the NDF market. Clients can deal in an OTC manner bilaterally which could be anything from trading a risk price to launching a complex order or transacting on a liquidity provider’s NDF algo suite. Alongside this is the innovative SGX CurrencyNode which is a Recognised Market Operator by the Monetary Authority of Singapore. CurrencyNode is exempt from SEF Regulations by the U.S. CFTC which allows BidFX to onboard eligible U.S. market participants who can then seamlessly trade NDFs.

The ecosystem being developed and the innovation on offer means if you trade NDFs and this excites you, do come speak with us! 

This article was written by Norliza Kamardin, Sales Director, BidFX.


Triennial Central Bank Survey of foreign exchange and Over-the-counter (OTC) derivatives markets in 2022