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CSFB Rolls PrimeTrade FX Module

Targeting institutional investors who trade foreign exchange (FX) instruments, Credit Suisse First Boston (CSFB) has rolled out a FX module of PrimeTrade—it’s Java-enabled front-end workstation application. Separately, CSFB has developed a PrimeTrade interface to the Austrian derivatives exchange, and is evaluating whether it should expand the front - end to cover options and emerging markets.

Targeting institutional investors who trade foreign exchange (FX) instruments, Credit Suisse First Boston (CSFB) has rolled out a FX module of PrimeTrade—it’s Java-enabled front-end workstation application. Separately, CSFB has developed a PrimeTrade interface to the Austrian derivatives exchange, and is evaluating whether it should expand the front - end to cover options and emerging markets.

To date, PrimeTrade has made its biggest splash in the derivatives and cash markets. The front-end currently serves as an order routing gateway to electronic trading systems used by a multitude of exchanges worldwide, including Eurex, the Chicago Board of Trade, the Chicago Mercantile Exchange, the Sydney Futures Exchange, the Oslo Stock Exchange and the Tokyo Stock Exchange (ETW, 3/8/99).

But now, via the launch of the PrimeTrade FX module, CSFB is hoping to tap into a completely different market. Philippe Buhannic, CSFB’s head of global fixed-income listed derviatives and electronic trading, says that the FX module is being aimed at small to mid-sized institutional investment firms that trade FX spot, forward and swap products.

Clients began beta-testing the FX module in the fourth quarter of 1999, and between “20 and 30” firms went live with module last month, says Buhannic. While declining to specify any of those clients, he says that CSFB’s target group includes banks, pension funds, hedge funds and mutual funds.

In addition to providing an order routing capability, Buhannic says the module will enable clients with an international trading portfolio to automatically export trades to their back-office system. Clients, he explains, will have at their disposal a “toggle switch” that will allow them to hop between PrimeTrade and PrimeClear—CSFB’s electronic clearing software.

PrimeClear, he says, is equipped with a “repo builder” that enables clients to call up specific trades and organize them by key subjects—such as currency or counter-party.

After that data is saved, it can be electronically exported to the back-office—eliminating the need for clients to manually re-input trade information.

PrimeTrade, down the road, may also be expanded to cover options and emerging market currencies. Buhannic says that CSFB is “looking at the feasibility” of adding coverage of both of those instruments later this year, but declines to elaborate.

Meanwhile, in addition to expanding PrimeTrade’s product coverage, CSFB continues to build new interfaces to exchanges and electronic trading systems. Buhannic, noting that CSFB went live with the PrimeTrade link to the Austrian derivatives exchange less than two weeks ago, says the firm is thinking about developing an interface to BondLink—an Internet-based bond matching system.

Last month (ETW, 1/3/00), CSFB purchased a minority stake in the Santa Monica, Calif.-based Trading Edge, BondLink’s parent. Buhannic says that BondLink is a relatively new system that needs time to grow. However, he says that once the system develops a “critical mass” of volume, CSFB will likely build a PrimeTrade-to-BondLink interface.

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