Software AG and Fluent Trade Technologies create ultra-low latency FX trading surveillance platform

Software AG (Frankfurt TecDAX: SOW) and Fluent Trade Technologies have together produced one of the most comprehensive FX trading platforms for multi-asset and compliance algorithms with ultra-low latency, unified market access and pre-trade risk protection. The combination of Software AG’s Apama FX eCommerce solution with Fluent Trade Technologies’ FIXation Framework creates the fastest feed handler and execution gateway in the market with connectivity to more than 60 Foreign Exchange (FX) venues in a single API. Additional capabilities include algorithmic trading, cross-venue Smart Order Routing, pricing, auto-hedging and order internalization strategies.

This new FX Trading Surveillance platform allows traders to gain significant advantage by pinpointing and responding first to the best prices in the market, while at the same time reducing their firm’s exposure to potential high frequency trading risks. Moreover, when using the FX Trading Surveillance platform, compliance officers can uncover abnormal trading behavior and avoid suspect conditions, as well as define new internal compliance and rules. This enables them to reduce operational risk and meet any new regulatory requirements quickly.

Last year, Software AG embraced the advantages of bringing big data to its product range by purchasing Apama from its developer, Progress Software. In this particular application, Software AG considers that the Apama product minimizes the challenges of FX market fragmentation, a matter that is constantly under scrutiny by banks, some of which use external service providers such as Deal Hub in order to manage the fragmentation of the market and ensure cohesive execution.

Dr. John Bates, Software AG board member and Apama founder, noted: “The FX market today is fragmented across multiple entities including ECNs and Single-Bank Platforms. Each of these entities offers their own cost models, trading mechanisms, access protocols, order types, trading rules, and most importantly their own instantaneous view of liquidity.”

“This level of fragmentation presents many challenges for dealers and market makers alike. The Apama FX eCommerce solution minimizes these challenges by providing functionality – out of the box – that provides a bird’s eye view of this fragmented market in real-time. Additionally, Fluent FIXation Framework’s capabilities add a whole new dimension of speed and unification to the equation, adding microsecond accessibility to more than 60 FX venues” concluded Dr. Bates.

Joel Steinmetz, Managing director, Fluent Trade Technologies, said: “Speed keeps you ahead of the competition, but memories of trading institutions with ‘runaway algos’ reminds us all that real-time detection and prevention of abnormal or suspect algorithm behavior is essential.

Fluent Trade Technologies’ risk prevention functionality enables both traders and compliance officers to eliminate risk arising from market shifts and protocol changes. Moreover, Fluent’s ‘risk-to-risk’ system allows automatic synchronization between FIXation’s risk layer and any in-house legacy risk systems, thus taking into account any additional circumstances that could affect trading thresholds.”

In addition, Fluent Trade Technologies’s simulator, SimFix, providers traders with the ability to analyze complex algorithm behavior using real data from multiple vendors before they execute their orders. It also connects to Software AG’s webMethods integration platform enabling traders to test how different corporate enterprise systems can impact their trading positions.

The leading platform for high velocity Capital Markets applications, the Software AG Apama platform is a comprehensive streaming analytics system for building sophisticated multi-asset applications for low latency trading, risk and compliance. With its combination of development ease and deployment power, Apama is unmatched in the industry and is deployed by leading international firms including Royal Bank of Canada, Unicredit, Deutsche Bank, Bank of China International and ANZ bank

For the official announcement, click here.

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