FX brokers may well be able to get their payment processing from JP Morgan!

At last, the banks which provide FX liquidity at its highest level are beginning to embrace real time payment processing

US banking giant JP Morgan is boosting its real-time payments offering by launching Sepa Instant in Europe.

Interestingly, JP Morgan is the second largest global interbank FX dealer by market share, the first being non-bank market maker XTX Markets placing JP Morgan as the bank with the largest FX dealing market share in the world at 10.49% of all FX order flow.

Therefore, if JP Morgan plays this correctly, the firm’s ability to interact with its own customers, those being OTC derivatives firms, on payment processing would be a very welcome development for retail FX firms and their service providers.

Payment channels and merchant services agreements have been a very challenging component of the entire electronic trading sector for many years now, with a substantial number of firms from outside the industry having been unwilling to provide payment processing services to online tradiing entities, often resulting in retail brokerages having to capitulate to the appalling and unprofessional channels provided by Israel and Cyprus based affiliate type payment vendors, most of which do not have a genuine system to offer, their roots being in affiliate marketing and binary options instead of genuine electronic payment provision.

The move by JP Morgan brings into effect the bank’s real-time payment capabilities in USD, GBP and EUR and is “another step towards offering real-time payments around the globe,” says Sungmahn Seo, MD, head of Emea payments and FX for JP Morgan Treasury Services.

Real time payments from a genuine banking institution, especially one that understrands our business so comprehensively, has to be a great thing. For example, although JP Morgan has not suggested at this early stage during the product’s life cycle that it would do this, providing a real time payments solution as part of a prime brokerage agreement to a prime of prime, which could then offer a holistic payment and liquidity solution to brokers would be a genuine FX industry breakthrough.

As it touts its leadership in the area, the bank says that clients benefit from immediate payment finality, easier reconciliation, better budgeting and improved liquidity management.

Art Brieske, MD, head of faster payments, JP Morgan Treasury Services, says: “As we create new opportunities and efficiencies for our clients via Sepa Instant and other real-time payment schemes we expect the take-up for real- time payments will grow exponentially.”

Let’s hope JP Morgan forges ahead and extends this service to its own liquidity takers, as it would make a huge difference to brokerages looking for good quality payment solutions from a company that not only understands our industry but originates it, and it would be a welcome diversion from the rot that has quite rightly been labeled by not only the industry itself but lawmakers as nefarious.

Read this next

Opinion

Is the Bank of England facing another storm? Op-Ed by Stuart Cole, macro economist at Equiti Capital

An analysis and opinion editorial by Stuart Cole, macro economist at Equiti Capital, 3 October 2022 on what triggered the UK gilt market sell-off and is the Bank of England facing another storm?

Industry News

Kim Kardashian fined $1 million for touting EMAX tokens on social media

“Investors are entitled to know whether the publicity of a security is unbiased, and Ms. Kardashian failed to disclose this information.”

Retail FX

INFINOX launches IX Exchange platform with +20,000 markets in UK

“The launch of IX Exchange is a statement of intent for our growth strategy and a game-changer for our clients’ trading potential.”

Retail FX

Saxo issues gloomy report for Q4 2022 and beyond

Globalisation was the biggest driver behind low inflation over the past 30 years and instrumental for emerging markets and their equity markets. Globalisation in reverse will cause turmoil for trade surplus countries, put upward pressure on inflation and threaten the USD as the reserve currency.

Executive Moves

ICE appoints Caterina Caramaschi to oversee interest rates and equity derivatives

“As the head of a product set covering some of the biggest interest rate and equity derivative benchmarks, at a time when investor’s priorities are firmly focused on interest rate changes and the outlook for global economies, Caterina’s two decades of financial market experience, and the relationships cultivated during that, will be invaluable in developing these products to the benefit of our customers.”

Retail FX

Plus500 sponsors Chicago Bulls ahead of trading platform launch in United States

Plus500 has signed a major multi-year sponsorship deal to become an official global partner of iconic NBA team Chicago Bulls. 

Technology

Polygon.io adds stock options APIs to market data platform that includes FX and Crypto

Polygon.io has launched a new set of stock options APIs to its entirely self-serve real-time data APIs, which includes stocks, crypto, forex, and options APIs free to use.

Market News

What’s in store for markets this week!

After The UK government unveiled their top tax rate cut, setting fire to GBP Cross pairs, prompting an intensive sell-off on the cable

Podcasts

FinanceFeeds Podcast Ep. #7: Exness’s Elena Krutova shares how to recruit the best talent in FX

FinanceFeeds is delighted to announce the release of the FinanceFeeds Podcast’s seventh episode featuring Elena Krutova, Chief People Officer of Exness, the renowned FX and CFD broker headquartered in Cyprus.

<