MultiBank Group has consolidated its dominance in the prime brokerage trading industry with the launch of MEX Exchange, an electronic communications network for institutional investors (ECN). Yesterday (Monday), the company announced that the ECN network is the first of its kind in the BRICS countries and the Gulf Cooperation Council countries.
New institutional ECN network
ECN provides liquidity on foreign currencies, precious metals and commodities, according to its website. The new platform is headquartered in Dubai and has plans to expand with more than 20 offices globally.
In the official announcement, MultiBank also highlighted that it is challenging the dominance of the USA and Europe in the global ECN market with its new platform in the Middle East.
“Today, we are unveiling a major project that will reshape the global financial system for 2024,” said Nasser Taher, founder of MultiBank Group. “Within two to three years, MEX Exchange will have a profound global impact, delivering significant financial returns and profits. As the only ECN interbank trading platform based in the GCC and BRICS countries, we are at the forefront of change and innovation.
The backbone of the foreign exchange markets
ECNs are very popular in the spot forex markets. Without a central exchange of currency pairs, brokers use ECNs, a computerized system, to automatically match buy and sell orders. Moreover, ECN brokers also offer higher execution speed and transparency compared to those that follow the STP model.
MultiBank confirmed that its ECN exchange was developed under the direct supervision of Tahir and MEX Exchange CEO, David Ogg, who also founded HotspotFX, which is known as the first institutional ECN network. After spending 40 years in trading, Ogg joined MultiBank last year in February.
Meanwhile, companies are also recognizing the application of ECNs in cryptocurrency trading. Last year, CrossOver Markets, a company founded by two former Jefferies brokerage executives, launched CROSSx, an execution-only cryptocurrency platform, which handled more than $3.15 billion in trading volume in the first three months of 2024.
This article was written by Arnab Shomi at www.financemagnates.com.
