• Deutsche Bank AG is all set to introduce an eFX (electronic foreign exchange) hub in Singapore.
  • The bank looks forward to building a forex trading and pricing engine onshore jointly with the Monetary Authority of Singapore.
  • The new initiative focuses on reducing delays and works on enhancing local price transparency.

On June 11, 2020, Deutsche Bank AG broke the news of its plan to launch an eFX (electronic foreign exchange) hub in Singapore. The bank also has plans to work in cooperation with the Monetary Authority of Singapore to workout forex and pricing engine onshore.

Furthermore, the bank looks forward to deploying the newest hub soon to be based out of Singapore to help execute FX transactions with reduced latency to enhance local price transparency and liquidity further.

The new location will be the fourth global exchange center for the German lender, with a presence in locations such as New York, London, and Tokyo.

The bank stated the initiative is undertaken to support clients to reduce delays and better local price transparency by executing FX transactions that are closely arranged with their geographic locations.

David Lynne, Deutsche Bank’s Asia Pacific (APAC) Head of Fixed Income, Currencies, and the Corporate Bank, says, “Given the substantial increase in demand for Asia currency e-FX we have seen in the past five years, growing client sophistication in e-FX trading, and the MAS’ focus on further developing the leading FX Centre in the region, hubbing this activity in Singapore makes perfect sense.”

The new location that expands Deutsche Bank’s investment in Singapore is expected to be developed and staffed locally.  In a statement it adds, Asian markets have high growth potential but are complex in nature. With the new Asian hub, the bank intends to “drive digital real-time treasury and open banking from Singapore into payment corridors across the region and globally.”

As told to The Edge Financial Daily in December, APAC CEO of Deutsche Bank, Werner Steinmüller, states that Asia is a critical location for the business and the German lender aims at a contribution between the range of 25% and 30% from the APAC region, to the total revenues.

During the wake of the Coronavirus pandemic, the bank has strategically allocated its capital to its investment banking division in the US, which has the largest operations.