Credit Suisse applies Open Banking APIs to interbank FX transactions

Credit Suisse is a Tier 1 bank that has woken from its legacy system-induced slumber and is now approaching FX counterparties with modern infrastructure. Perhaps this has been driven by necessity

Tier 1 FX interbank dealer Credit Suisse has introduced two new Open Banking interfaces designed to provide financial counterparties with access to real-time data on the status of their securities and FX transactions.

In securities, users can learn the settlement status of transactions for which they have issued instructions and quickly uncover issues leading to settlement delays.

The other interface acts on FX trades passing through the international Continuous Linked Settlement (CLS) system. Trade details and the counterparty’s Unique Transaction Identifier (UTI) are automatically updated, eliminating manual queries for internal and external reporting obligations.

“APIs enable innovative forms of collaboration and interoperability between banks,” explains Paolo Muzzarelli, head of transaction banking products at Credit Suisse. “With these solutions, we are supporting new forms for financial institutions to work together. The increased flexibility and efficiency benefits all parties and their end-clients.”

He says the bank is considering the introduction of new interbank APIs for safekeeping account positions, account balances and invoicing.

It certainly looks like the Tier 1 banks have a greater incentive toward providing modern methodology which is not normally their modus operandi. This is very likely to be largely down to the competition that they now face from the non-bank sector.

There is no greater innovator than competition, and Credit Suisse, whose revenues have been on the wane for some time now, is certainly feeling the pinch as non-bank market makers such as XTX Securities – a company which now has the largest market share of Tier 1 FX order flow worldwide – have pipped the banks over recent years.

Interbank FX dealing technology is usually consists of legacy infrastructure, and moves toward adapting the way banks interface with their counterparties is not common. The company did, however, recently created a global Investment Bank to build a client-centric global platform with critical scale for corporate, institutional and entrepreneurial clients.

In creating the investment bank in the summer of this year, initiatives included the creation of Global Trading Solutions and a globally integrated Equities platform. GTS was established to combine Credit Suisse’s International Trading Solutions and APAC Solutions to maximize the capabilities of Credit Suisse’s wholesale business for corporate, institutional and entrepreneurial clients. It is set to allow for further global technology integration, a unified risk set-up and the delivery of a wider range of products, greater scale and better pricing for customers.

It certainly looks as though the complacency that Tier 1 banks have showed over the past few years by curtailing counterparty credit to OTC derivatives firms – some of the Tier 1 banks’ most lucrative customers – has resulted in a bloody nose being administered by the non-bank market which is more efficient, provides much more tailored and appropriate access to liquidity and less nasty tactics such as last look execution or slippage and rejections than the banks.

Necessity is the mother of invention, as they say….

Read this next

Institutional FX

Fiserv secures major payment institution licence in Singapore

Brookfield-based financial services technology provider Fiserv Inc has obtained nod for a Major Payment Institution license in Singapore.

Institutional FX

Finalto expands NDFs line-up with Taiwanese dollar

Finalto announced today that it has expanded its non-deliverable forwards (NDFs) offering with the addition of Taiwan’s dollar to its trading platform.


It’s time for FX to Harness Crypto’s Potential

Jonathan Cumberlidge, FX Sales Director for BVNK, makes the case for cryptocurrencies in improving the efficiency and flexibility of foreign exchange trading.

Digital Assets

Owner of OptionMint, OptionKing, and OptionQueen gets 30 months in prison

A US federal judge has sentenced Ohio resident Jared Davis, who was found guilty for his participation in a multi-million fraud scheme carried out by Israeli-run binary options websites.

Executive Moves

iS Prime co-founders Raj Sitlani and Jonathan Brewer leave, but “business as usual”

“For our clients and teams at iS Prime, iS Risk and iS Prime Hong Kong, it is business as usual. We will be increasing our investment in our technology and staff, putting our clients first as we drive the business forwards to maintain our market leadership position.”

Digital Assets

Germany-focused DekaBank taps METACO for digital asset custody offering

“Digital assets are a critical part of the future, a radical new way for how assets will be represented, from currencies to real estate.”


Eventus launches AML solution for TradFi and digital asset space

“Firms operating in traditional financial markets and digital assets alike are facing greater challenges than ever to protect themselves from those presenting a risk to their businesses and reputations, along with their standing with government regulators.”

Industry News

Qomply launches direct-to-FCA trade report solution that bypasses ARM

“Certainly, for back-reporting large volumes of data, QomplyDirect removes extra ARM fees by offering the flexibility of sending reports directly to the FCA via a firm’s own infrastructure.”

Executive Moves

BNP Paribas AM appoints Geoff Dailey as Deputy Head of US Equities

“Geoff has more than 20 years’ experience in the industry and as a key, senior member of the team with a strong investment pedigree and leadership profile, he is the natural successor for Pam.”