TradAir has partnered with Singapore-based technology firm Snap Innovations, to jointly develop FX solutions, initially for Asian market participants.
The joint venture has been made possible through funding provided by the Singapore Israel Industrial R&D Foundation (SIIRD), a co-operation between the Singapore Economic Development Board (EDB) and the Israel Innovation Authority to promote, facilitate and support joint industrial R&D collaboration between Singapore-based companies and Israel-based companies across different industries.
The firms say the new solutions will enhance regional FX liquidity, enabling Asian market participants to aggregate, trade and become market makers between the currently fragmented OTC and exchange-based regional FX liquidity pools.
A study released by Deutsche Bank seeks to challenge the assumption that having more liquidity providers in an aggregator inevitably leads to better execution.
Aggregators are popular in the FX market, enabling trading firms to routinely put multiple liquidity providers in competition and then transact with the one offering the best price. Being able to consolidate liquidity, in the form of bid and offer prices and amounts, from various sources into a single, consolidated order book is particularly valuable in an OTC market with no centralised exchange.
“But in a market where the terms of trade are privately negotiated and the liquidity provided is bespoke to the trader, deciding on a suitable aggregation setup is not a trivial task,” according to the report, titled “Execution in an Aggregator”.
Citadel Securities has partnered with BestX to provide its clients with independent analysis of its FX execution quality.
"We're confident in the quality of our execution and partnering with an independent TCA provider demonstrates this. From a market structure standpoint, I think that the FX market can benefit from more transparency, whether it's through independent measurement of execution quality or the creation of a central tape," Kevin Kimmel, global head of e-FX at Citadel Securities, tells Profit & Loss.
Kimmel says that providing independent TCA provides value because it eliminates any potential concerns of bias in the execution analysis and because it helps create standardisation in terms of how the analysis is conducted.
Market data, and analytics technology provider Vela Trading Technologies, has signed a definitive agreement to acquire Object Trading, a provider of a direct market access (DMA) platform, pre-trade risk controls, and analytics applications. The firm says the acquisition further strengthens its trading and market data technology products and services, delivering a set of solutions across the entire electronic trading workflow to help clients reduce total cost of ownership, comply with ever-changing regulatory requirements, and evolve their global electronic trading strategies.
Execution analytics provider BestX is partnering with Cobalt, the FX post-trade processing network based on distributed ledger technology.
BestX is the first TCA and analytics provider to connect with Cobalt’s BlueSky service, enabling clients of both firms to independently validate client trades and define, achieve and demonstrate best execution through Transaction Cost Analysis (TCA).
Pressure for independent analytics in FX has increased over the past year, driven by MiFID II compliance, regulatory focus on transparency, as well as a more activist ‘asset-owner’ community that wishes to see evidence of best execution across all FX trades.
GreenKey Technologies has announced a global partnership with Red Box Recorders, a provider of voice recording technology and services, to create an integrated solution for embedded compliance recording within GreenKey’s software-based trader collaboration offering.
Red Box technology records voice conversations over soft client phones, turrets and mobile devices and the firms say that clients can use it with the trade and communications analytics, monitoring and archiving capabilities of GreenKey’s Enterprise Voice Collaboration platform to provide complete records of trade activities.
QuantHouse has launched its algo-trading stress testing solution to help financial firms meet their MiFID II testing requirements. The firm is hosting the new platform at Interxion in London.
Partnering with Interxion, a provider of carrier and cloud-neutral colocation data centre services in Europe means QuantHouse’s new stress testing solution is made available via a single cross connect through a single API, enabling clients to rapidly connect to the platform in order to build stress testing scenarios, the firm says.
CLS Group (CLS) and NEX (Nex) Optimisation have together announced the expansion of CLS Aggregation Services to support the aggregation of non-CLS currencies.
The aggregation service handles spot transactions and aims to address the operational and capacity challenges experienced by banks as a result of high frequency FX trading.
A joint venture between CLS and Nex Optimisation’s Traiana business, the service works by aggregating matched FX trades to a single trade which in the case of the CLS currencies is then processed through to settlement in CLS.
Just eight months after releasing its first post-trade execution analysis product, BestX has rolled out its much-anticipated pre-trade execution analysis functionality.
The release helps the firm, which was co-founded by former Morgan Stanley staffers Pete Eggleston, Oliver Jerome and Aman Thind in early 2016, deliver on its vision of an end-to-end best execution service, as Eggleston explains. “We look at best execution as a lifecycle event where you can look at a trade or portfolio of trades throughout the cycle."
NEX (Nex) Optimisation has launched an automated credit rebalancing tool that specifically addresses limit over-allocation by prime brokers.
Rebalancer went live across five major ECNs on 2 July 2017, with further platforms going live throughout the year.
Designed in close partnership with Citi, Rebalancer is deigned to enable dynamic allocation of credit across client trading venues, allowing clients to move credit from one platform to another in real time.
Prime brokers currently allocate credit to multiple trading venues but do not have the ability to move it around if there is excess credit on one and a shortage on the other.