Phillip Securities has picked Integral to power its entry into institutional foreign exchange (FX) trading, adding technology infrastructure to support larger clients and higher trading volumes.

The Singapore brokerage, which has historically concentrated on retail customers, will use Integral's pricing and distribution systems to handle FX contract-for-difference trades for institutional clients.

The move builds on Phillip Securities' existing equity CFD business and follows similar technology adoptions by sister companies Phillip Nova and Phillip Securities Japan, both of which already run Integral's systems.

Phillip Securities Adds Institutional Capacity

The Integral platform will let Phillip Securities route real-time price feeds to institutional clients and other entities within the PhillipCapital Group. Clients will be able to trade FX instruments through direct market access, a model that's been picking up users across Asia-Pacific markets looking for faster execution and transparent pricing.

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The brokerage can also add more FX products down the road without overhauling its systems, thanks to the platform's flexibility. That matters as Phillip Securities tries to serve a broader range of clients while managing the operational complexity that comes with institutional volumes.

"Diversifying into the institutional markets is a key pillar of our development strategy, and Integral's solutions give us the pricing precision and distribution efficiency to deliver an institutional-grade FX capability that meets the expectations of today's professional clients," said Luke Lim, managing director of Phillip Securities.

Axi, CFI and Taurex are just a few of the big names that have recently taken similar steps. Why are CFD brokers going “insti”? According to Gold-i CEO Tom Higgins, professional clients “understand the markets far better than retail clients, so they cause fewer issues.”

Two other PhillipCapital units have already integrated Integral's technology for their FX operations, giving Phillip Securities a preview of how the systems work within the group's structure.

The setup lets the Singapore entity distribute pricing across the organization's network, which spans 15 countries and serves more than 1.5 million clients with over $65 billion in assets under management.

Technology Provider Expands Asia Footprint

Integral, a Palo Alto-based firm founded in 1993, provides currency technology to banks, brokers and payment companies. The company operates from offices in six cities, including Singapore and Tokyo, and counts hundreds of financial institutions as clients.

Harpal Sandhu, Integral's chief executive, said the partnership shows how the company's tools have performed for other PhillipCapital entities.

"To excel in institutional markets, garnering the trust of clients is key," Sandhu said. "The reliability and efficiency of Integral's technology will support Phillip Securities in securing this trust."

A few months ago, Integral also entered into a partnership with the Singapore-based brokerage Straits Financial Services.

In the meantime, the company has launched direct connectivity to CME Group's primary foreign exchange trading venues, giving its clients immediate access to two major liquidity pools.