JP Morgan launched two major functionality upgrades to MorganDirect, its proprietary foreign exchange and rates trading platform, at Forex Network Chicago last week.
MorganDirect AlgoX provides a suite of tools for algorithmic order execution while MorganDirect FX Options will introduce electronic pricing, analytics and execution for foreign exchange options.
AlgoX is an order execution tool that provides clients with a suite of sophisticated order execution strategies coupled to a smart order router that aggregates multiple liquidity sources.Aside from standard order functionality already available on MorganDirect, AlgoX allows clients to execute larger orders that can be algorithmically dispersed into multiple smaller orders executed through a variety of channels.
For instance, orders can be internalised with existing JP Morgan liquidity and interests, or traded against JP Morgan support pricing, or routed out to external liquidity sources. A post trade execution analysis is also available for every order.
The product will provide liquidity discovery capabilities that is critical in today’s fragmented liquidity landscape, JP Morgan says.
FX Options on MorganDirect provides clients with options market transparency and execution capabilities similar to those available with FX cash products. Clients will be able to see real-time volatility surfaces of major currency pairs in a customisable table or a three-dimensional graphical display.
Clients can also specify custom strikes, tenors and exchange deltas on an execution that is just a mouse click away. A variety of risk analytics is also available. The option tool supports vanilla options, straddles, strangles, and risk reversals.
Eddie Wen, global head of e-commerce for FX and rates at the bank says: “With today’s fragmented liquidity and market landscape, tools like MorganDirect AlgoX and FX Options will dramatically empower the end user with better liquidity and market transparency vital in today markets.”
A number of banks have developed and launched algorithmic order execution tools for FX clients in recent months. Credit Suisse was the first to market with its AES (Advanced Execution Services) for FX at the beginning of 2007. Earlier this year Citi went live with two strategies – Silent Partner and Ripple – which are part of its FX Intelligent Orders product group, with a third in development. Deutsche Bank announced the launch of AutobahnFX Algo, which offers three execution strategies, in August and last month Barclays Capital unveiled PowerFill+, a suite of tools providing clients with enhanced order management capabilities and access to deeper liquidity.