Cognotec has launched a new Application Programming Interface (API) service called Cognotec AutoDeal Connect to automate the underlying FX transactions arising from real-time cross border trade and securities transactions.
Albert Maasland, Cognotec’s global head of marketing, says the release uses the core foreign exchange version functionality of the browser-based services by integrating the API into other e-commerce applications, so the conversion of currencies can be effected in a seamless automated fashion. The API allows a supplier to quote prices to its clients in the currency of their own choice and converting these prices where required.
“Our flagship service, AutoDeal Lite uses a Web browser interface into the dealing system. It provides price request, credit checking, market rates, customer prices (which reflect credit risk and cost of settling the trade), and the ability to accept or reject a trade. The API mimics that, but the difference is that you don’t need to have an individual requesting rates ‘ another system electronically requests and auto executes the deal when required,” he says.
The API service is targeted at e-marketplaces or e-brokerages as well as the specialist departments within banks, such as securities processing, custody or foreign payments. “This creates an exciting e-broker application,” says Maasland. “A bank in the UK can quote its customers who wish to purchase US stocks, for example, in sterling terms. So the customer can be quoted, execute and settle an equity trade in sterling ‘ so it executes the FX and the stock trade automatically ‘ which opens up a range of new services to an existing client base, in the process increasing the number of FX transactions that are executed.”
Users can electronically connect into custody systems, so the clerical person processing dividend payments can automatically obtain a price to settle in a different base currency. The system sends an electronic request to AutoDeal Lite, establishes crediting and debiting, updates the trader’s books and automatically processes the trade. So dividends received in a non-domestic currency are automatically converted into the investor’s domestic currency.
“Cognotec AutoDeal Connect addresses classic daily banking requirements such as collecting interest rate coupons, dividend payments or facilitating foreign payment,” says Maasland. “The API leverages off what we’ve always done ‘ it’s just another way of requesting a price ‘ it’s a different distribution mechanism or a more efficient way of processing.”