Retail-Focused Phillip Securities Pivots to Institutional FX Market

Phillip
Securities has picked Integral to power its entry into institutional foreign
exchange (FX) trading, adding technology infrastructure to support larger
clients and higher trading volumes.

The
Singapore brokerage, which has historically concentrated on retail customers,
will use Integral’s pricing and distribution systems to handle FX
contract-for-difference trades for institutional clients.

The move
builds on Phillip Securities’ existing equity CFD business and follows similar
technology adoptions by sister companies Phillip
Nova and Phillip Securities Japan, both of which already run Integral’s
systems.

Phillip Securities Adds
Institutional Capacity

The
Integral platform will let Phillip Securities route real-time price feeds to
institutional clients and other entities within the PhillipCapital Group.
Clients will be able to trade FX instruments through direct market access, a
model that’s been picking up users across Asia-Pacific markets looking for
faster execution and transparent pricing.

The
brokerage can also add more FX products down the road without overhauling its
systems, thanks to the platform’s flexibility. That matters as Phillip
Securities tries to serve a broader range of clients while managing the
operational complexity that comes with institutional volumes.

“Diversifying
into the institutional markets is a key pillar of our development strategy, and
Integral’s solutions give us the pricing precision and distribution efficiency
to deliver an institutional-grade FX capability that meets the expectations of
today’s professional clients,” said Luke Lim, managing director of Phillip
Securities.

Axi, CFI and Taurex are
just a few of the big names that have recently taken similar steps. Why are CFD
brokers going “insti”? According to Gold-i CEO Tom Higgins, professional
clients “understand the markets far better than retail clients, so they cause
fewer issues.”

Two other
PhillipCapital units have already integrated Integral’s technology for their FX
operations, giving Phillip Securities a preview of how the systems work within
the group’s structure.

The setup
lets the Singapore entity distribute pricing across the organization’s network,
which spans 15 countries and serves more than 1.5 million clients with over $65
billion in assets under management.

Technology Provider
Expands Asia Footprint

Integral, a
Palo Alto-based firm founded in 1993, provides currency technology to banks,
brokers and payment companies. The company operates from offices in six cities,
including Singapore and Tokyo, and counts hundreds of financial institutions as
clients.

Harpal
Sandhu, Integral’s
chief executive, said the partnership shows how the company’s tools have
performed for other PhillipCapital entities.

“To
excel in institutional markets, garnering the trust of clients is key,”
Sandhu said. “The reliability and efficiency of Integral’s technology will
support Phillip Securities in securing this trust.”

A few
months ago, Integral
also entered into a partnership with the Singapore-based brokerage Straits
Financial Services.

In the
meantime, the company has
launched direct connectivity to CME Group’s primary foreign exchange trading
venues, giving its clients immediate access to two major liquidity pools.

This article was written by Damian Chmiel at www.financemagnates.com.


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