50 leading banks to set up online forex market.LONDON, Oct. 24 Kyodo Fifty of the world's leading banks and Reuters Group PLC, the major British news agency, announced Tuesday that they will jointly set up an online Internet-based foreign exchange market. Professional foreign exchange dealers, companies and institutional investors will participate in the new market, to be called Atriax, which hopes to start operations as early as next April, officials said. Among the Japanese banks to participate in the electronic marketplace, are Sumitomo Bank and the Mizuho Financial Group Mizuho Financial Group, Inc. (株式会社みずほフィナンシャルグループ . The 50 founding member banks of Atriax account for over half of global trading volume Trading volume The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. in the foreign exchange market, currently about $1.5 trillion a day, making Atriax the largest, most liquid market in the world, the officials said. Participants will be able to trade in the currencies of more than one hundred countries, and will be able to cut transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). because of completely automated confirmation and settlement systems. Reuters will supply the market with real-time market data and news, while the bank members will also provide research data to be made accessible to all authorized nonbank members. Atriax will be operated as an independent business, having its own board of directors and management team. Chase Manhattan Bank The Chase Manhattan Bank, now part of JPMorgan Chase, was formed by the merger of the Chase National Bank and the Bank of the Manhattan Company in 1955. The bank is headquartered in New York City. , Citibank, Deutsche Bank and Reuters will be the largest shareholders. The chief executive officer will be Dan Morehead, former chief financial officer of Tiger Management L.L.C, a U.S. hedge fund hedge fund, in finance, a highly speculative, largely unregulated investment device. Originating in the 1950s, the funds "hedge" by offsetting "short" positions (borrowing a security and then selling it at a higher price before repaying the lender) against "long" . ''Our aim is to quickly establish Atriax as the most efficient means to research, transact, and settle foreign exchange business. The Atriax platform will provide a single point of access to market news and data, aggregated research, online dealing and straight through processing In financial technology, the ability to process a stock transaction by computer from beginning to end without manual intervention at any of the stages. ,'' Morehead said. |
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