Traiana, provider of post-execution STP for the FX market, is working with innovative technology firm Lava Trading, provider of high-performance trading solutions for the financial services industry, to introduce NetLink efficiencies for Lava's FX trading clients.
Lava's OTC, Listed and Foreign Exchange solutions are used by leading broker/dealers, including most of the top U.S. investment banks, as well as market makers, hedge funds and institutional investors. LavaFXR, the company's foreign exchange product suite, provides a premier offering in electronic foreign exchange trading.
Built upon Lava's leading proprietary technology core, it offers an ECN of live dealable prices, full depth of book, the ability to place bids and offers, anonymous trading, together with Lava's sophisticated order types.
NetLink is a post trade netting service for the FX market which significantly reduces the number of tickets processed in the back office of the FX prime broker.
David Ogg, CEO, LavaFX, said: "We are very pleased to add Netlink efficiencies to our Lava foreign exchange product suite. The post-trade expertise provided by Netlink will strengthen our offering to customers and bring enhanced efficiency, anonymity and reliability for our customer's trading needs."
Daily traded volumes in FX are rising, while more FX organisations are trading smaller ticket sizes, but in greater numbers, through algorithmic trading. This puts increasing pressure on the back offices of the FX banks offering prime brokerage.
NetLink provides an efficient solution as it receives deals from the electronic platform and determines whether or not each deal is netting-eligible based on customer-defined parameters. The majority of FX trades are then processed and netted by NetLink, and then electronically confirmed to the prime broker's back office either as deal tickets or simply as payment records.
NetLink has previously achieved a 95% reduction in ticket volume, effectively netting dozens of prime customer traders into single tickets. NetLink will enable prime brokers to net trades their clients execute through Lava by currency pair at pre-defined points throughout the day. The introduction of Netlink to Lava will introduce new efficienciencies which will encourage market growth and adoption of the platform.
Gil Mandelzis, CEO, Traiana said: "The most effective way for FX trading organisations to maintain their client service in FX is to invest in a ticket netting service. NetLink is providing the only real FX netting solution and we are delighted Lava shares with us the vision to apply this technology for their clients."