Bank Leumi (TASE: LUMI) is upgrading its trading platform for business and institutional customers, as institutional investors expand their operations overseas, launching its Trade On system. This system consolidates all trading operations in one interface, allowing customers to carry out transactions in foreign currency, Israeli and foreign securities. It also enables foreign financial institutions to trade in the Israeli capital market.
Foreign investments by provident funds are now estimated at over NIS 50 billion, amounting to 17% of their total assets, up from 10% four years ago. Bank Leumi says that the expanded foreign activity by investment institutions is in all market segments: investment in indices, bonds, and swap deals.
Trade On's launch is just the start of Bank Leumi's plan to add new features. For example, the bank plans to add a feature to allow the system to trade in foreign bonds, which it cannot currently do because this is handled over the counter rather than by regular trading.
Consolidating all systems in a single interface will allow synergy. For example, it is possible to buy foreign securities immediately after the purchase of foreign currency, and to write reports and analyses on customer portfolios at a level that is currently not possible.
Trade On meets two of Bank Leumi's needs: the development of digital channels and streamlining. Use of the system by investment institutions will come at the expense of direct work with these customers by the bank's trading room, which will allow the bank to expand its capital market activity without hiring more staff.
"The Trade On system reflects the new banking era. We will continue to develop state-of-the-art systems," said Bank Leumi CEO Rakefet Russak-Aminoach.
Published by Globes [online], Israel business news - www.globes-online.com - on June 1, 2014
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