Cognotec has launched a new version of its Internet-based FX/MM trading service, AutoDeal Direct, which enables smaller banks and financial institutions to outsource their market making while delivering an e-commerce service to their clients. Already, a number of banks in Asia, Europe and North America have decided to the service to their existing e-commerce offerings.
AutoDeal Direct is an extension of the Liquidity Linq feature of Cognotec’s flagship AutoDeal Lite service, which allows smaller tier banks to quote FX prices to their corporate and institutional customers via the Internet. The Liquidity Linq feature, which was added to the AutoDeal Lite product last year, enables market maker banks to offer real-time executable prices to regional banks that do not want to assume market risk. The large bank assumes the market and credit risk of the regional bank, while the regional banks assume the credit risk of the customers. The regional bank is able to guarantee spread income without assuming market risk.
This latest version requires less technical infrastructure than AutoDeal Lite, and allows smaller institutions to implement an e-commerce solution at much lower cost and more quickly than ever before, according to officials. Since its launch in January of this year, AutoDeal Lite has added more than 60 customers.
“AutoDeal Direct will enable small and medium-sized national and regional banks to greatly enhance the foreign exchange service they are able to offer clients – while at the same time making considerable efficiency and cost savings compared to manual trading processes,” says Albert Maasland, global head of marketing.