FX Markets Asia FX Awards 2023: Credit Suisse

 

Credit Suisse operates an automated market-making business in principal FX and precious metals, which attracted the judges’ attention in the Best e-FX trading house category

The firm has made several enhancements to its e-offering in the past 12 months, placing electronic distribution at the core of its FX strategy. This has resulted in a fully scalable offering that provides clients with enhanced pricing, transaction sizes and service availability.

For example, the bank’s innovative deployment of artificial intelligence (AI) in pricing is part of a differentiated offering strategy that has set it apart from competitors and provides clients with distinct benefits. Built around its innovative AI pricer, Credit Suisse’s electronic solutions include several key features to unlock value for clients, including excellence in supporting large trade sizes and liquidity provision outside of standard market hours.

First, Credit Suisse’s application of AI in real-time pricing has been instrumental in enhancing the trading experience for its clients via tighter bid/offer spreads. The bank uses a neural network to generate constant forecasts in price direction and volatility, which it can leverage to present exotic and more frequent axes to customers. In 2022, Credit Suisse deployed the third generation of its AI pricer, which included new features extending the AI axes to cross currencies and further expanded the execution savings available to clients.

Second, Credit Suisse stood out in generating deeper liquidity for clients through its full amount offering, which streams some of the largest FX and precious metals spot sizes in the market. This approach allows customers to execute large trades at competitive prices without needing to break down the execution into smaller trades over time. In doing so, Credit Suisse clients can save time and costs, while minimising the potential to signal the client’s intentions to the markets. The bank’s AI-generated forecasts add another layer of value by instilling confidence in pricing and internalisation, further reducing the market impact from client trades. In response to client demand, Credit Suisse increased its maximum electronic quote sizes again in 2022, providing single-ticket liquidity of up to EUR/USD750 million and 125,000 ounces XAU/USD spot, for example.

Finally, Credit Suisse has aimed to provide solutions for clients beyond consensus market expectations by developing the ability to provide liquidity when markets are closed. The bank started by offering competitive precious metals spot pricing during the daily one-hour market downtime as well as during bank holidays. It is now taking the initiative one step further by offering FX spot streaming prices on Saturdays through its single-dealer platform and FIX API distribution network. Service availability beyond standard market coverage hours has proven to be a popular addition for certain customers.

Charles Firth, head of sales, South-east Asia, at Credit Suisse, explains: “Credit Suisse’s innovations and client focus in e-FX have led to industry-changing improvements for the benefit of FX market users. All types of investors have profited from their partnership with Credit Suisse through tighter pricing, more axes, extended trading hours or the ability to trade larger sizes in one click.”

Combined with evidence of leading performance on major distribution venues in the Asia-Pacific (Apac) region, FX Markets reviewed several testimonials from the firm’s clients, corroborating how much they value these services. For example, one Apac client familiar with Credit Suisse’s full amount offering emphasised: “Pricing on principal from Credit Suisse is very competitive […] In addition, the FX sales team is supportive and engaging; [we are] happy to work with them.”

Consequently, the panel of judges decided to recognise Credit Suisse with two additional FX house of the year awards for excellence in, respectively, Japan and Australia. A client in Australia who subscribes to Credit Suisse’s zero-downtime precious metals service said: “Credit Suisse has been an invaluable partner, particularly in the area of metals pricing, where they excel as a tier one company. Their innovative pricing strategies have enabled us to offer more competitive pricing to our clients, even during CME closures.”

While, in Japan, one client who has seen trading volumes with Credit Suisse grow significantly with the roll-out of the AI pricer added: “The Credit Suisse [platform] design is easy to view with rich functionality compared with other banks. Credit Suisse’s share in USD/JPY has been in the top three this year, and [emerging market] currency pricing is superior to competitors. Last year, we were very impressed with Credit Suisse in the yen crosses. Staff are always very attentive to our needs, which is very much appreciated by our dealers.”

Credit Suisse was awarded Best e-FX trading house, FX house of the year, Japan and FX house of the year, Australia at the 2023 FX Markets Asia FX Awards. 

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