Trading tools

Apama helps dealers aggregate FX liquidity

Progress Software, a provider of financial software, has made a wider range of single-bank foreign exchange (FX) portals available to dealers via its Progress Apama Capital Markets Framework connectivity network.

Among the bank platforms now available on the extended network are Bank of America’s FX Transact; Barclays Capital BARX; Citi’s LavaFX; Credit Suisse's AES FX; Deutsche Bank Autobahn; Goldman Sachs; HSBC’s FXfix and UBS FX2B.

The

network currently includes interbank FX dealers and multibank portals such as Thomson Reuters Dealing, Currenex and Hotspot.

Connectivity to the network, which provides access to electronic communications networks and inter-dealer markets, will be accessible from all Apama Solution Accelerators, including its algorithmic trading and FX aggregation tools.?

Using the Apama framework, FX dealers can now access single bank platforms via a single, consolidated interface with views of both liquidity and available prices, which the firm claims will aid aggregation of FX liquidity as well as building and executing FX algorithms. According to Progress, FX aggregation also aids the development of high-frequency trading strategies.

“High frequency trading will represent 35% of the FX trading volume this year,” commented Sang Lee, co-founder and managing partner of consultancy Aite Group. “Connectivity to different execution venues will prove a key component to success with these trading strategies. Single bank portals, which do not charge for access, are an increasingly attractive component of the FX market structure. This broadened array of FX destinations should expand the Apama platform appeal, particularly amongst smaller banks that wish to trade electronically via these portals.”

“The FX market has undergone revolutionary change, presenting participants with tremendous opportunities for profit,” added Dr. John Bates, Progress Software’s chief technology officer and senior vice president of corporate development and strategy. “However, to tap into this profit requires mastery of the fragmentation in the FX market in real-time. By providing an aggregated view of pricing from every bank and ECN in real-time, we are giving FX dealers a powerful competitive advantage.”

Meanwhile, Baxter Financial Services, an FX trading solutions provider, has integrated its offering with Dutch FX software firm TradeSense.

Baxter will now be able to offer its clients TradeSense’s algorithmic trading capabilities, FX data hub and low-latency smart order routing, which the firm claims will strengthen its multi-bank FX trading and netted clearing capabilities.

According to TradeSense CEO Marcel van der Vliet, the partnership with Baxter will improve its client data, order execution quality and options for real time netted clearing.

“The usage of the TradeSense software in combination with Baxter means that clients will have a reliable efficient access to all major FX venues,” said van der Vliet.