Broadway Technology has launched a campaign to deliver flat-fee hosted liquidity aggregation and e-commerce services for foreign exchange trading.
The company, a provider of trading software for banks and hedge funds, says that by offering a flat-fee hosted structure, it is making it simple for a broad spectrum of financial institutions, ranging from large global banks to small hedge funds, to access a single platform with a range of FX liquidity aggregation, trading and e-commerce capabilities.
“Ever since we started Broadway, our philosophy has been that customers shouldn’t pay us fees related to trading volume; they should only pay for our software,” says Tyler Moeller, chief executive of the New York and Austin-headquartered company.
The company, which was founded nine years ago, offers customers software to launch an FX electronic trading operation right out of the box, regardless of how many traders are involved, where they are located or other software that is required. Alternatively, customers with narrow gaps in their trading operations are able to select only the trading components they need and integrate them into an existing system.
“Our new hosted offering will give our clients the best execution across banks and ECNs, combined with a groundbreaking rules-based e-commerce engine to make high quality prices to their customers and a powerful platform upon which to build automated hedging and execution algorithms,” says Joshua Walsky, chief technology officer.
With the end-to-end hosted solution, Broadway runs the same liquidity aggregation and e-commerce technology that it has deployed at its bank customer sites. All of Broadway’s trading components are accessible via a single multi-asset class, multi-market trading GUI or via the company’s proprietary TOC, which provides a single application programming interface for companies to build their own integrated applications, including automated hedging strategies, pricing models and trading algorithms.
Broadway connects to 22 FX ECNs, banks, and platforms, and says it is continuing to expand its connectivity offering. The company also has similar connectivity capabilities in other asset classes.
“Our hosted fixed-fee subscription software brings all the power of liquidity aggregation, e-commerce and pricing – or any mix thereof – in one place. Fundamentally and philosophically we believe if you are using a platform and using software to trade then you should be paying for the software not for every trade you do. How many trades you do is your business,” explains Walsky.
Broadway Technology was founded in 2003 by Moeller, a former algorithmic trader and founding partner of KATS, a proprietary high-frequency automated trading group, and Walsky, a software engineer who designed and developed the core trading platform for KATS.
While there, the duo collaborated to develop early versions of Broadway’s software platform, The TOC, the low-latency event driven distributed data-oriented architecture that underpins all of the company’s trading products.
According to Walsky, The TOC makes it possible to build trading capabilities quickly and easily. It can be integrated with a bank’s existing infrastructure, and it allows the use of any mix of Broadway’s products, other vendors’ products, and custom-built applications as a single cohesive platform.
“The TOC is one of the reasons why we have had such success in large financial institutions. They like the fact that they can use it to empower their IT teams to build more value add services. On the other hand our smaller customers love the fact that we have sophisticated technology out of the box.”
Broadway says it has been profitable every year since it was founded, with revenues rising 50% per year in each of the last four years. Goldman Sachs and another bank, believed to be BNP Paribas, took equity stakes in the group late last year.