SmartTrade Technologies said it is adding features that aggregate on screen available liquidity in foreign currencies and adding smart order routing to its trading system for spot markets.
In addition to the liquidity aggregation and smart order routing, SmartTrade said its new system will include an order management system, mainly geared for regional banks and brokerages, as well as pricing, price distribution, hedging and risk management features.
Dealing in foreign exchange “represents tremendous potential opportunity for mid-tier and regional banks and brokerages,” said smartTrade CEO Harry Gozlan, in announcing the extension of its LiquidityFX system. ” This gives regional financial institutions the ability to enter the ‘technology arms race’ and compete with the larger global banks to attract and retain more of their customers’ FX business.”
The new capabilities will be available in December 2012. The system will support spot trading, as well as forward contracts, non-deliverable forwards and precious metals, according to chief technology officer David Vincent, CTO of smartTrade.
The company hopes to extend the capabilities to other asset classes such as bonds, swaps, and other OTC products as part of a “cross-asset liquidity management” system.
LiquidityFX is available as a hosted and managed service, as a software package, or on an appliance.
The LiquidityFX system collects liquidity from a wide range of sources to form a single order book. Then it distributes customized pricest to institutional clients, manages the order flow from those clients, allows dealers to internalize liquidity or route it to external venues.
SmartTrade’s systems aim to “optimize” the process of foreign exchange trading from the time an order comes into an institution to when a transaction is complete. LiquidityFX tries to be an “out of the box” system for FX dealers.
