Source: Fidessa group
Fidessa group plc (LSE:FDSA), a leading global provider of multi-asset trading systems, market data and global connectivity solutions, has added an enhanced multi-asset, pre-trade risk module for account-based trading across equities, futures and contracts for difference (CFDs) to its European sell-side trading platform.
The move marks the latest phase in Fidessa's comprehensive multi-asset strategy, and is a direct response to increasing asset convergence seen in both US and European markets.
Steve Grob, Director of Strategic Partnerships, Fidessa, comments: "Fidessa's multi-asset strategy reflects the growing trend among financial institutions to broaden the scope of their trading activities to include more complex and geographically dispersed financial instruments. The addition of the multi-asset, pre-trade risk module underscores Fidessa's commitment to ensuring that its European sell-side trading platform is truly agnostic with regards to asset class, and further enriches the platform's already-extensive derivatives functionality."
The pre-trade risk module uses margin as well as collateral to provide risk managers with maximum flexibility. Margin data is used to assess the risks associated with any derivatives trading position; the system calculates the 'worst case scenario' for a contract and deducts the margin requirement for that position from the account's purchasing power. It also enables Fidessa's clients to use equity positions as collateral for trading futures and CFDs. By monitoring the values of equity positions in real time it is able to base its results on the true balance available to the trading account.
The system is fully integrated with Fidessa's market data service, giving real-time position values, margin requirements, collateral values, unrealised P&L and trading balances. It has also been designed to be fully integrated with Fidessa's global connectivity network to provide risk management for inbound external client DMA and algorithmic order flow.
In 2006, Fidessa extended its sell-side equity trading platform's core architecture to support multiple asset classes, leveraging its reputation for performance, workflow and robustness. In 2007, Fidessa signed 34 new European clients for this multi-asset solution.
Over the next 12 months Fidessa Fidessa will be further extending its derivatives support to include US equity options and further Asian exchanges. This will deliver the only global multi-asset platform that has been architected from the ground up in this way.
Steve Grob adds: "Markets are operating at a faster pace, and on an increasingly global basis, so being able to offer a global and completely integrated platform across multiple asset classes is of increasing importance to our customers."