New automated capability optimizes position and hedging strategies to manage market risk
London, UK – June 30th 2021: KX, a worldwide leader in real-time streaming analytics, has today announced enhancements to KX Flow, its white-label foreign exchange trading platform. The enhancements help financial institutions better manage market risk, with a new automated capability to optimize position and hedging strategies. Additional pricing and connectivity improvements further optimize pricing streams and enhance flexibility.
New auto hedging capabilities extend hedging logic based on trade and position size, as well as on realised, unrealised and total P&L per book. Risk can now be organized into multiple books, each with their own positions and hedging rules. These rules can be configured in real-time using a range of order types and smart order routing for optimized execution and profitability.
“With the new KX Flow auto hedging capabilities, financial institutions can better control their risk through comprehensive rules-based position management tools that allow them to dynamically analyze and update pricing and risk profiles in real-time,” said Rich Kiel, Global Head of FX Solutions, KX. “Aligning this with KX’s market leading pre and post trade analytics provides real-time, intelligent insights enabling our clients to achieve better execution while reducing risk and optimizing their profitability.”
Today’s announcement also includes support for Rolling Books, Settled Books, new order types such as TWAP, Peg and Stop orders and a function to close all workflows at any point in time. Additional pricing and connectivity improvements include:
- New tier spot pricing allows for different mark-ups depending on which multi-bank portal (e.g. 360T, FXall and BBG FXGo) is utilized, while support for Request for Stream (RFS) and Executable Streaming Pricing (ESP) optimizes transactions for these trading styles. Additionally, taker markup enhancements add flexibility to how financial institutions can electronically add margin to client pricing requests.
- Increased 3rd party connectivity gives financial institutions access to a range of Multi Bank Platforms (MBPs) such as LSEG FXAll, Bloomberg FXGO and Deutsche Börse 360T. No matter which channels banks need to reach their clients through in the increasingly fragmented FX marketplace, KX Flow provides a one-stop-shop to enable client connectivity via MBP’s, direct API, or white-label HTML5 GUI, across banks, non-bank LPs and leading ECNs.
For more information on KX Flow and its recent enhancements, please visit: https://bit.ly/3qBTeCt
KX, the leading technology for real-time continuous intelligence, is part of First Derivatives plc, a group of data-driven businesses that unlock the value of insight, hindsight and foresight to drive organisations forward. KX Streaming Analytics, built on the kdb+ time-series database, is an industry leading high-performance, in-memory computing, streaming analytics and operational intelligence platform. It delivers the best possible performance and flexibility for high-volume, data-intensive analytics and applications across multiple industries. The Group operates from 15 offices across Europe, North America and Asia Pacific and employs more than 2,500 people worldwide.