Foreign Exchange Trading Solution

Business Problem

With the rapid adoption of electronic trading, the need to process huge volumes of foreign exchange data in real-time is more acute than ever. According IFSL, daily forex trading volume averaged US$2.9 trillion/day globally and grew 38% in the last year. Forex investors are moving to more active trading in this 24-hour market, and the increased prevalence of swaps, options and other derivatives make the ability to perform complex real-time analysis critical.

Forex trading is even more challenging for hedge funds and other buy-side investors because it lacks a central exchange. Brokers/dealers must navigate tens of thousands of bid/ask quotes from dozens of large banks who dominate trading and have visibility into their customers' orders—making it difficult to ensure best price execution. With spreads as low as 1 pip, the ability to process huge forex data volumes, execute your proprietary models with zero latency, and make immediate, sub-second trading decisions is imperative.

Our Solution

Truviso provides un-paralleled visibility into the forex market. Whether using a consolidated data source or direct feeds, Truviso can consume thousands of bid/ask quotes per second, continuously analyze them in real-time, and deliver results to a visual dashboard or directly to your trading system. Based on a revolutionary data stream processing engine, Truviso allows direct SQL-based queries to run against live forex data feeds as they arrive, producing instantaneous visibility and trading decisions.

Truviso's Foreign Exchange Trading Solution allows easy configuration of the exact views into the forex market that is relevant to your traders and strategy. The Truviso FX application includes a number of pre-defined views, including:

  • Market Dashboard - Shows a variety of metrics (e.g. best bid/ask, spread, TWAP, etc.) for any currency pair in a single chart, super-imposed with specific fills or quotes by liquidity provider.
  • Skew Graph - Shows the depth of book across all your liquidity providers, sorted from best to worst bid/ask, to better determine how to break up an order and what price to expect.
  • Market Scoring - Applies your own configurable scoring algorithms against the forex feed to provide a qualitative summary of where the market is headed and how and when to optimally trade.
  • Portfolio Summary - Delivers the complete up-to-thesecond status of the portfolio as positions change and orders are filled, including flexible drill-down and replay to assess performance.
  • Algorithmic Trading - Triggers trades automatically based on proprietary algorithms unique to your firm via direct integration to your order management system, ECN or prime broker.

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All these views are delivered via TruView, Truviso's real-time visualization framework, which renders dynamic end-user charts in a configurable web browser interface. Data feeds are integrated using our library of pre-built connectors, including standards such as CSV, JMS, JDBC/ODBC, and XML as well as proprietary APIs such as Reuters™, FlexTrade™, and HotSpot™. Automated trading decisions can be delivered directly to your order management system leveraging these same interfaces.

Differentiators

Truviso's unique capabilities in forex data analysis translate to a differentiated advantage for your firm. Our solution uniquely offers all the following:

  • Real-time visibility - Any analysis can be run using continuous SQL-based queries, providing instant intra-day insight into any metric, any currency pair, and any liquidity provider.
  • Proprietary analysis - Support for user-defined functions, user-defined aggregates and stored procedures, lets you run your sophisticated models (e.g. in C++, Java, MATLAB™, Rlab, QuantLib™, etc.) in real-time.
  • Drill-down and replay - Continuous data capture enables rapid drill-down and replay of any point in time to assess trade effectiveness and adjust trading models.

Benefits

Empowered with real-time analysis, visibility and action, you can improve trading efficiency, make better decisions, and improve fund profitability. Specific benefits include:

  • Visibility into price slippage due to trade pre-emption or strategy drafting.
  • Ability to trade on information faster through instant analysis and automated trade execution.
  • Assessment of trading algorithm execution, enabling continuous improvement.
  • Unique market analysis not available from data providers or sell-side firms.
  • Development of new proprietary trading strategies through back-testing and market replay.
  • Ability to exploit short-lived market conditions through event-triggered actions.
  • Improved ability to assume leveraged risk through continuous, real-time position risk scoring.
  • More intelligent order fulfillment and ability to disguise strategies from other firms.

Capabilities

The Truviso capital markets solution makes sophisticated, high-volume data analysis—which was previously only financially and technically feasible for the largest Wall Street firms—accessible to any size or type of investment fund.

Key capabilities include:

  • Pre-defined views for common forex metrics (e.g. VWAP/TWAP, bid/ask spread, etc.)
  • Direct integration to leading financial data providers and order management systems
  • Real-time alerts and actions (e.g. trades) based on user-defined event triggers
  • Rapid creation of custom queries using standard SQL-based programming languages
  • Ability to capture and replay data for back testing high frequency automated trading models
  • Integrated drill-down and replay for post-trade analysis and continuous execution improvement
  • Customizable views by currency pair and liquidity provider
  • Configurable web-based UI, deployable in an internal or customer-facing dashboard
  • Auto capture of tick data for analysis and backtesting, avoiding the need to buy historical data
  • Extreme performance - response times measured in milliseconds

To download information on Truviso's Foreign Exchange Trading solution, click here.

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