Purchase of LavaFX from Citigroup meant to expand footprint.
Looking to expand its reach in the institutional market, multi-bank FX trading platform company FXall has agreed to buy LavaFX from Citigroup.
In its news release FXall said the purchase of LavaFX will increase its institutional client base to nearly 1,000, allowing it better access to hedge funds, CTAs, banks, broker-dealers, corporate treasurers and asset managers. According to the Lava web site, LavaFX is part of Citi’s Lava Trading, a supplier of direct-access electronic-trading software, which the bank purchased in 2004.
While already a leader in the sector, FXall has attempted to solidify its position with new offerings in the last year. In November 2009, the company began offering its platform through Equinix data centers and has also increased its pool of liquidity providers.
Still, competition is increasing, according to NeuGroup peer group members. FXall enjoys wide use among peer group members and while most are customers of its FX trading and its settlement center for post-trade administration, there is growing interest in learning more about alternative portals, especially with FXall usage fees creeping up. One notable entrant is German platform provider 360T.