Electronic Broking Services
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Electronic Broking Services (EBS) is a wholesale electronic trading platform used to trade foreign exchange (FX) with market making banks. It was originally created as a partnership by a number of the world's largest banks and is now part of ICAP.
EBS was created by a partnership of the world's largest foreign exchange (FX) market making banks in 1990 to challenge Reuters' threatened monopoly in interbank spot foreign exchange and provide effective competition. By 2007, approximately US$164 billion in spot foreign exchange transactions were traded every day over EBS's central limit order book, EBS Market.
EBS's closest competitor is Reuters Dealing 3000 Spot Matching. The decision by an FX trader whether to use EBS or Thomson Reuters Matching is driven largely by currency pair. In practice, EBS is the primary trading venue for EUR/USD, USD/JPY, EUR/JPY, USD/CHF, EUR/CHF and USD/CNH, and Thomson Reuters Matching is the primary trading venue for commonwealth (AUD/USD, NZD/USD, USD/CAD) and emerging market currency pairs.
EBS initiated e-trading in spot precious metals, spanning spot gold, silver, platinum and palladium, and remains the leading electronic broker in spot gold and silver through the Loco London Market.
In addition to spot FX and Precious Metals, EBS has expanded trading products through its venues to include NDFs, forwards and FX options. It has also increased the range of trading style to include RFQ and streaming in disclosed and non-disclosed environments.
EBS was acquired by ICAP, the world’s largest inter-dealer broker, in June 2006. ICAP said that the acquisition would combine EBS’ strengths in electronic spot foreign exchange with ICAP’s Electronic Broking business to create a single global multi-product business with further growth potential and significant economies of scale. It went on to say that would provide customers with more efficient electronic trade execution, reduced integration costs and give access to broad liquidity across a wide product range.
In 2014, EBS merged with BrokerTec – a leading service provider in the fixed income markets – to form EBS BrokerTec. BrokerTec’s offering comprises trading solutions for many US and European fixed income products including US Treasuries, European Government Bonds and European Repo.
EBS BrokerTec is now recognised as a market-leading e-trading technology and solutions provider, offering access to multiple execution options and diverse, valuable liquidity across the FX and fixed income markets.
Products of the company include:
- EBS Spot (electronic FX spot broking)
- EBS Spot Ai (application program interface (API) between the customer’s trading system and the EBS Spot market)
- EBS Prime (access for the interbank and professional trading communities to the best EBS Spot prices from an EBS Prime bank)
- EBS Metals (electronic spot broking for the precious metals market)
- EBS NDFs (electronic spot broking for non-deliverable FX pairs)
- EBS Live (live streaming prices delivered with minimum latency direct from EBS to the customer's market data distribution platform)
- EBS Ticker (third-party system distribution of EBS Spot prices)
- EBS Rates (desktop view of EBS Spot prices, available through the Thomson Reuters Eikon and 3000xtra desktop as well as the Bloomberg Terminal service)
- EBS Data Mine (unique and certified historical data from 1997 onwards)
- ICAP Agrees to Buy Electronic Currency Broker EBS, Hamish Risk and Andrew Reierson, Bloomberg, 2006-04-21