The shift underscores the need to locate servers closer to customers amid the boom in high-frequency trading and the rise of the yuan, which accounts for about 4% of global currency volumes. It is also a win for Singapore, Asia’s biggest currency-trading hub, which is fighting to maintain its lead over chief rival Hong Kong and grab a bigger share of trading in the Chinese currency.
Deutsche Bank is replacing its global pricing engine for emerging-market currencies in London with one in Singapore, drawn by surging trading in Asia and the increasing importance of the Chinese yuan.
Locating new and more powerful computer hardware in the city-state will help the bank shave vital fractions of seconds from the time it takes to execute orders in the region, according to Singapore-based David Lynne, the chief of fixed income and currency operations in Asia region.
