FXall, the London Stock Exchange Group’s (LSEG) foreign exchange (FX) business, has partnered with fintech Saphyre to digitise the account onboarding process. The programme is currently live for a limited number of clients, and will be rolled out to all users over the course of 2023.
Asset owners and investment managers use the platform to set up accounts with their banks and custodians, who are prepared in advance for a trade to take place by way of a notification system for liquidity providers.
By automating the onboarding process the risk of settlement errors is significantly reduced, primarily by improving communication between parties, says LSEG.
Saphyre’s technology enables buy-side clients to share FX account data and documents with their liquidity providers and FXall via a single platform. Sell-side clients will have access to this data and will be able to provide statuses on accounts’ tax, credit risk and legal activities, amongst others.
Jill Segelbaum, head of strategic development at partnerships for foreign exchange at LSEG, says: “We are excited to be the first FX trading platform to offer Saphyre’s digitised solution to all our buy-side and bank clients. Embedding Saphyre’s technology into our account setup and approval process will greatly improve the overall onboarding experience and offer our user community time and cost efficiencies.”
Gabino Roche, CEO and co-founder of Saphyre, adds: “Our relationship with FXall is another example of our platform helping firms to work smarter through our patented AI-powered digitisation technology. FX front-office teams on the buy-side and sell-side benefit because liquidity providers can seamlessly execute and settle trades against new or updated funds without trade errors regarding account setup or reference data changes.”
