Removing FX Matching brokerage on longer-dated FX Swaps
The FX Market is investing heavily in the automation of FX Swaps Trading.* In 2025, LSEG FX saw 10% of activity in Swaps conducted via API on our FX Matching platform. This was a new record and a signal that investments by our clients in their own infrastructure is filtering through to the interbank market. With hundreds of billions of dollars with electronically in short-dated Swaps, it’s important we continue to support the market at this key moment to help drive electronic curve formation in longer tenors – which is why LSEG FX is removing brokerage on longer-dated FX Swaps to help increase transparency in electronic hedging.
Helping to advance the FX Swaps ecosystem
In our view, the ecosystem of FX Swaps is maturing to a point where a fully functioning Orderbook with high quality market data will be a stepping stone for products like Algos on FX Swaps, which our buyside clients will execute through platforms like FXall. The buyside are increasingly vocal about the need for such businesses in the bank community to help meet their needs.
Supporting Swaps growth on the FX Matching platform
It is already free to place (Make) on our FX Matching platform; to foster further growth we are supporting the market by removing execution costs as a factor by also reducing Taking to $0, in a bid to promote further growth.
From 1st May 2026, the brokerage payable on longer-dated FX Swaps, with tenors from one month, will be reduced to $0 per million traded. ** The current fee structure in Table 1 will change to the structure in Table 2.
Table 1
| Tenor | Fee per Aggressor $M | |
|---|---|---|
| EUR/USD | Others | |
| 1 Month | $0.80 | $1.20 |
| 2-3 Months | $1.20 | $1.80 |
| 4-6 Months | $2.00 | $3.00 |
| 7 or more Months | $3.60 | $5.40 |
Table 2
| Tenor | Fee per Aggressor $M | |
|---|---|---|
| EUR/USD | Others | |
| 1 Month | $0 | $0 |
| 2-3 Months | $0 | $0 |
| 4-6 Months | $0 | $0 |
| 7 or more Months | $0 | $0 |
Looking ahead to the evolution of hard matching
Following a successful pilot with four banks, LSEG FX is working to move hard matching in FX Swaps closer to the spot market model by introducing firm, pre‑trade credit checks directly into our Matching CLOB. By enabling faster, automated credit validation at the point of match, the LSEG FX Matching platform will increase certainty of execution and reduce friction without compromising anonymity or centralised price formation. This signals a step-change in making electronic FX Swaps trading more reliable and scalable under stressed conditions, while preserving the discipline of a true order book.
LSEG FX continues to invest in the FX Swaps market and we look forward to sharing further announcements as we progress through 2026.
* The FX Market is investing heavily in the automation of FX Swaps Trading and BIS cites the “advance of electronic trading” as a key structural force reshaping FX derivatives markets in its Triennial Survey [bis.org]
* * Excludes onshore markets where we offer separate commercial terms.