The big global banks involved in currency trading plan a banks-only dealing system, in a move to reclaim lost business, the Wall Street Journal said, citing several people familiar with the situation.
The move marks an effort by leading banks to regain lost ground since access to EBS, the largest forex dealing system, was opened to hedge funds and other non-banking financial players like high frequency traders in 2005, the Journal said.
EBS is owned by Icap PLC
The planned venture is tentatively named Pure FX and has the backing from most of the 10 largest banks in global foreign-exchange dealing, according to the paper.
But none of the banks involved in Pure FX is thought to be considering leaving EBS, whose FX prices are viewed as the industry benchmark, particularly in key currencies like the euro, dollar and yen, people told the paper.
The ten banks named by the Journal are Deutsche Bank AG
All the ten banks declined to comment to the Journal.
UBS spokesman Mark Panday told Reuters that he cannot comment on the Journal report. The other nine banks could not be reached for comment.
(Reporting by Sakthi Prasad; Additional Reporting by Abhinav Sharma in Bangalore; Editing by Jane Merriman and Elaine Hardcastle)