Financial services software developer, Financial Markets Solutions (FMS) has entered into a reverse-take-over of Kinvara Ventures. FMS, which was set up a year ago, developed an Internet-based FX dealing platform designed to provide institutions with a single, low-cost FX transaction platform that customers can access directly through the institution’s Web site.
The central component of the FMS design is the Universal Trading Platform that enables an unlimited number of simultaneous users to access and execute trades on a fully automated basis. “The system is designed to work within an institutions’ current FX business structure and distribution network, providing for real-time updates, heavy database transaction usage, fast retrieval and querying, all features that will allow users to view pricing and execute trades in real time,” says an official.
“The FMS system was designed knowing that a fundamental change in the FX market is inevitable,” the official adds. “The company believes that the shift to a more technology-oriented system is driven by consumers’ demand for more efficient means of trading, using a platform that offers better access, greater transparency and more competitive pricing. FMS predicts that this demand will cause banks to abandon the current spread-based model in favour of a fee-based model and to form consortiums to create larger liquidity pools. The FMS system will link these otherwise fragmented pools of liquidity to create a common market on which to trade currency.”
FMS plans to implement a server farm project that will allow the company to offer an internal solution, as well as an ASP solution for financial institutions.
Two former forex dealers founded the company. Eyup Saltik, co-CEO and chief technology officer, began his career at Commerzbank in Germany, and later worked for Citibank as a senior options trader, running proprietary risk in Frankfurt and Singapore. He held similar positions at Morgan Stanley in New York and became a director at Deutsche Morgan Grenfell in New York, where he oversaw FX options and proprietary trading. R. Scott Wilson, co-CEO and president, worked in the oil futures market on the NYME before joining GFTA, a large offshore systematic hedge fund. He worked in corporate sales for Chase and Swiss Bank Corporation and, while at NationsBank, ran the North American franchise business. He left his position as head of sales for Nomura’s global FX division in March 1999 to set up FMS with Saltik.