First Derivatives, a provider of software and consulting services to the capital markets industry, has launched an integrated trade execution, risk management and surveillance solution for FX markets.
The solution enables brokers to provide value-added services to their clients by monitoring for unauthorised trader activity, detecting unusual trading patterns and offering a sandbox environment for testing and validating new trading models.
Combined with its accompanying market replay facility for forensically reviewing historical trading patterns, this integrated offering enables brokers to meet their regulatory obligation to provide a fair and efficient trading venue for their clients and liquidity providers alike.
Delta Flow is an established eFX trading venue that offers clients direct access to liquidity and is built upon the Delta Platform from First Derivatives. The same platform, based on kdb+, is used by traders for high volume, low-latency algorithmic trading and by regulators for real-time detection of market abuse and unauthorised trading activity across multiple asset classes. Delta Surveillance is also built upon the Delta Platform and is used by the Australian Securities and Investments Commission (ASIC) to meet its statutory obligation to oversee the overall Australian licensed financial market.
This combination of order management, trade execution, transaction analytics, surveillance capabilities and alerts management provides clients with instant visibility into individual transactions, aggregated risk profiles and the integrity of the overall trading activity. Employing the same technology for trade surveillance as trade execution enables brokers to stay abreast of changes and react swiftly to new trading patterns. The solution, which operates on a common technology platform capable of processing massive trade volumes, provides the additional benefit of real-time detection and visualisation without any integration overhead.
Providing an enterprise-wide solution from pre-trade through post-trade activities across multi-asset classes will enable firms to comprehensively analyse and manage their business based on a holistic strategy. As an example, through the Delta platform’s accompanying “Data as a Service” offering, it enables data owners and their clients to unlock and monetise the value of their information assets in a secure, flexible and controlled manner.
Brian Conlon, CEO of First Derivatives, says: “We already provide FX execution services for top banks, asset managers and hedge funds and we provide surveillance solution for regulators and exchanges. Putting them together is an obvious step but one that brings something unique to the market in offering surveillance as an integral part of an FX trading platform. ”