Mosaic Smart Data’s vision is to transform the financial industry and empower institutions with advanced analytics tools to gain a competitive edge. The company is living up to that pledge with its new venture – the launch of a free analytics service designed to help the foreign exchange (FX) market, FXLIQUIDITY.

To create FXLIQUIDITY, Mosaic Smart Data joined forces with CLS, the world’s leading FX settlement provider, and MUFG, an international bank. The impetus to launch the service was borne from conversations that MUFG has had with customers who have been calling for a better understanding of what is happening in terms of liquidity in FX. Economic uncertainty due to the COVID-19 pandemic was – and still is – causing volatility and stressed market conditions, and it stands to reason that any financial institution or corporate that’s part of the FX ecosystem wants to have the best information readily available to make advantageous trading decisions.

The three companies realised that if they combined their expertise, they could forge a service that would give market participants greater transparency of currency moves. FXLIQUIDITY uses CLS’s robust, aggregated FX market data, MUFG’s aggregated FX order book data and Mosaic Smart Data’s advanced analytics software.

The analysis of key currency pairs compares three time periods: ‘pre-COVID-19’ (1stJune 2019 to 20thFebruary 2020, as a baseline), ‘COVID-19’ peak (21stFebruary to 20thMarch), and ‘recent’ (a rolling three-week period to provide a realistic overview). Currency pair spreads, volumes and term structures are analysed, and the findings are presented with graphs and commentaries. The FXLIQUIDITY microsite is updated weekly, giving market participants and financial journalists an insight into how the FX market is moving.

With the fragmented nature and huge volumes of the FX market, getting the project up and running has been a big task in terms of the technological processes, legal compliances and execution of the data analysis. And the communications strategy and delivery has also been multi-faceted in consideration of the varying requirements of each collaborating company. Chatsworth led the plan across the three companies’ marcomms teams, culminating in media coverage in the international press, newswires and trade publications, including Reuters, the New York Times, Dow Jones, Nasdaq, Markets Media, Profit & Loss, Traders Magazine, The Trade, and many more. To date, we have achieved nearly 50 pieces of coverage.

As FXLIQUIDITY continues to be accessed by the FX industry, free of charge, it will be interesting to see how the market responds.

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