Instinet And Citibank Announce New Foreign Exchange Crossing Service
Instinet , the global electronic agency securities broker, and CitiFX, a market leader in foreign exchange, have formed an alliance to operate The Instinet FX Cross, a new foreign exchange crossing service. The Instinet FX Cross is a currency-crossing product that ‘will support the execution of large currency transactions anonymously at a transparent market price’. The Instinet FX Cross is expected to be operational in the fourth quarter of 2002. Initially it will be available to North American clients with a European rollout planned to follow soon after. The Instinet FX Cross will be targeted at customers executing large transactions where market impact can be costly and anonymity is valuable. The CitiFX Benchmark will provide the exchange rates at which all trades by CitiFX will be executed. Instinet, through Instinet Global Holdings, Inc., acting as an agent for CitiFX, will manage all order taking and matching functions.