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October 1, 2012

The Next Step

Broadway Technology's Moeller Talks Forex

By Tom Steinert-Threlkeld

Tyler Moeller is chief executive of Broadway Technology, a leading provider of financial trading systems and services. Its flagship trading system is called The TOC(tm). Traders Magazine caught up with Moeller to talk about how the firm extended The TOC platform into foreign exchange trading.

 

Traders Magazine: When did you start in FX?

Tyler Moeller

Moeller: We started FX in 2006.

 

Traders Magazine: That was one of your early asset classes?

Moeller: Yes, after Treasury bonds and futures, we started into FX with BNP Paribas. They were not only our first FX customer but also our first global customer, so that was a very big deal. We started with them in the Treasury space, building advanced trading systems for them, and then they asked us to build a global FX system.

 

Traders Magazine: For market making activity?

Moeller: For all FX trading. We had built up a new trading system for them in the Treasury space. It did very well. Then, they had a big initiative to really increase their overall market share in FX and they wanted to know if we could do all the things we had done in the Treasury space in FX: build out automated trading systems but then also get into order routing and execution and customer dealing, and a lot of the flow side of the business.

 

Traders Magazine: You had already done all those things in a Treasury system you had built for Countrywide Securities, so this was just a product extension essentially?

Moeller: Absolutely. One of the things we focused on from the very beginning with The TOC, and all of our products, was to keep things generic and asset-class agnostic. Only where they really need to know specific nuances of asset class are things not generic. We have built everything to be generic this way, which means we can share a tremendous amount of our code and a tremendous number of our products across different assets.

So, yes, we were able to move into FX in a couple of months and start building out FX for them. We also did a global deal so we started building out technology in London, New York and Asia.

 

Traders Magazine: How big is FX now as a percentage of your business?

Moeller: From a revenue perspective, it is about a third of our revenue right now.

In the last few years, we saw huge growth in the Treasury side of the business partly because a lot of firms became primary dealers.

 

Traders Magazine: That's right. The Fed has to trade with somebody, right?