BBVA Adds Liquidity Engine to SGX FX Platform for Latam Currencies
The lending giant BBVA and SGX FX have joined forces to increase trading activity in Latin American currencies, bringing one of the region's biggest liquidity providers onto Singapore Exchange's foreign exchange platform.
BBVA Teams Up With SGX FX to Boost Latin American Currency Trading
BBVA will set up a distribution engine at the NY4 data center in New York, giving traders direct access to prices in major Latin American currencies. The Spanish bank, which operates retail and commercial banking businesses across Mexico and South America, handles significant volumes in regional currency pairs.
The arrangement puts BBVA's pricing on SGX FX's electronic trading network, which already connects banks, asset managers and hedge funds trading Asian and global currencies. Traders using the platform can now tap into BBVA's quotes alongside other liquidity providers.
"Our strategic focus on LATAM underscores our goal to build robust and diversified FX markets that drive growth opportunities for all participants," Jean-Philippe Malé, CEO of SGX FX, said. "BBVA's deep expertise in this dynamic region bolsters SGX FX's ability to provide clients with efficient access to the Americas, the LATAM region, and Emerging Markets as a whole."
This is another collaboration between the two institutions, following SGX FX’s move in early October to grant BBVA clients access to 24/7 crypto trading, making it the first bank in the EMEA region to offer such a service.
Regional Currency Access Expands
Latin American currencies have drawn increased attention from institutional investors looking beyond traditional major currency pairs. The Brazilian real, Mexican peso and Chilean peso rank among the most actively traded emerging market currencies, though liquidity can vary significantly depending on market conditions.
SGX FX runs currency futures contracts alongside its spot foreign exchange platform. The Singapore-based exchange has been working to expand its footprint beyond Asian trading hours, adding liquidity providers in different time zones.
BBVA operates in more than 25 countries and holds leading market positions in Mexico and South America. The bank's trading desks handle corporate and institutional flows in regional currencies, giving it visibility into local market dynamics.
Platform Competition Intensifies
The foreign exchange market remains fragmented across multiple electronic platforms, with banks and trading firms splitting their order flow between venues. EBS, owned by CME Group, and Refinitiv's FXall compete for market share alongside newer entrants focused on emerging market currencies.
Melody Martínez Davidson, Managing Director of Institutional Sales for fixed income, currencies and commodities flow at BBVA's corporate and investment banking division, said the tie-up would help international investors access Latin American markets.
"By combining our regional leadership with SGX FX's advanced distribution capabilities, we're enabling seamless connectivity between local markets and international investors," she said.
SGX FX's platform includes BidFX and MaxxTrader technology for price aggregation and execution. The exchange also operates CurrencyNode, which matches buyers and sellers anonymously in over-the-counter currency trades.