Opening up can be so hard to do...

Its hope to attract rival broker EBS to take up some of this real estate is certainly progressive. Given the rivalry between the two companies since the latter was launched in 1993, EBS' decision could spell an end to years of gentlemanly hostility between the two companies.

Indeed, according to market sources, an increasing number of electronic brokers are open to the idea of letting other liquidity pools use their desktop. But whether EBS would actually take up Reuters' offer should be an interesting one to watch. One might say it's unlikely to happen anytime soon. Particularly, by the same token, EBS could go to Reuters and say put Reuters through EBS's desktop.

But one good reason for teaming up would be distribution. Ultimately, Reuters has been in the industry for 20-odd years with an extensive reach, not only via the Reuters Dealing 3000 platform but also, and more so, via the Reuters Dealing Xtra platform. Although the former has traditionally been the staple of the FX trader, Xtra can support EBS' reach to traders in other asset classes.

Of course, interdealer broker Icap – owner of EBS – may have a thing or two to say about it, particularly given its own plans to launch a multi-asset class electronic trading platform. In June last year, Icap said in its financial statement it is planning to offer multi-asset electronic trading with liquidity in FX, cash bonds, repo and derivatives in different currencies, as part of the integration between Icap and EBS. But, it's not there yet.

Part of Reuters' proposition is to also get in to see the China Foreign Exchange Trade System (Cfets) to look into the possibility of adding that venue onto the FX On Reuters service. There's synergies there already, with the latter providing technology for a revamped renminbi-supportive trading platform.

But that's not to say Icap hasn't made any inroads with Cfets itself. In July last year, the China Foreign Exchange Trade System & National Interbank Funding Centre and Icap announced plans to launch a joint-venture money broking business in China. But there's no real FX and electronic FX piece to that.

For the FX trader, it may make sense to have the two biggest liquidity pools on the same desktop. At the end of the day, if we accept that each venue has sustained its strength in different currencies, then shouldn't this just be natural progression?

Saima Farooqi, Editor