GFI, a leading interdealer broker, announced the rebranding of FENICS TraderSM, its multi-bank foreign exchange options platform, on Monday in the face of new changes mandated by the controversial Dodd-Frank Act.
Launched in February 2011, the platform, which will be renamed GFI Direct, will be operated by regulated subsidiaries of GFI Group, Inc. FENICS Trader is a single access point to multi-bank liquidity for FX options, allowing for independent FX options price discovery.
“We are delighted to be taking responsibility for building on the success of FENICS Trader under the GFI Direct brand,” Paul Millward, the head of FX e-commerce at GFI Group, said. “Our GFI Direct customers will continue to receive the high level of service that they currently receive from FENICSSM. In addition, we will develop the GFI Direct product as a key part of GFI’s FX e-commerce strategy.”
Under Dodd-Frank, off-exchange — or OTC—instruments – are required to be traded on regulated exchanges to increase transparency following the recent financial crisis. FX options, currency swaps and non-deliverable forwards will be subject to the new rules, while the Treasury extended an exemption to FX swaps and forwards.
“We are making these changes in response to U.S. regulations enacted as part of the Dodd-Frank Act,” FENICS Managing Director Richard Brunt said. “This transition will not inconvenience our clients or our liquidity providers with no change to their existing workflow. GFI Direct will be available as a trading venue via the FENICS ProfessionalSM desktop, with auto population of order requests to GFI Direct and STP of post-trade details for risk management and downstream processing.”