BGC Partners’ kACE launches FX options OMS
“The market is evolving. Tier one banks are now making their trading APIs more widely available to clients for FX options. Participants are recognising the benefits to white labelling external liquidity, allowing them to provide a full bureau service to their clients with broad currency pair and product coverage.”
kACE has launched kACE OMS, a new module of its platform kACE Pro that delivers an Order Management System (“OMS”) for the FX options market.
The division of Fenics Software Limited, an entity within the BGC Partners, was launched in July 2018 following the acquisition of Kalahari Limited by Fenics Software Limited.
The product range includes pricing, analytics, distribution, and trading tools for a broad range of asset classes.
Connectivity to major FX options trading venues and 16 LPs
The newly launched kACE OMS empowers FX options trading desks to leverage internal and external liquidity and risk management.
kACE OMS provides out-of-the-box connectivity to major trading venues of FX options and 16 liquidity providers, manages client orders through the quoting process and risk-offsetting workflow from multiple sources, including kACE Sales, e-commerce platforms, and third-party applications.
Each of the processes can be automated in the system or handled manually, including price construction, spreading, streaming updates, credit checking, quote management, and risk-offset of the entire market risk or the delta position only.
“kACE OMS democratizes electronic price making and distribution”
Rich Winter, Senior Managing Director and Global Head of Fenics Market Data and Information Analytics, said: “kACE OMS democratizes electronic price making and distribution, allowing firms with lower flows or narrower remits than the tier one banks to build a bespoke trading infrastructure, leveraging white labelled liquidity to automate and provide electronic price making across a wide range of FX and structured products.”
Richard Brunt, Managing Director at kACE, commented: “The market is evolving. Tier one banks are now making their trading APIs more widely available to clients for FX options. Participants are recognising the benefits to white labelling external liquidity, allowing them to provide a full bureau service to their clients with broad currency pair and product coverage.
“The desire for best execution is another driver, with MiFID II regulation in Europe strengthening the wording around this. Banks see the application of best practices as a valuable component and differentiator for the service they are offering to clients. kACE OMS benefits the liquidity provider and their client, bringing more business more efficiently.”
John Crisp, Director of Product Strategy at kACE, added: “A key component to successfully implement such a solution is ease of customisation and integration. Our APIs and SDKs have been designed to achieve this efficiently, enabling clients to roll out kACE OMS smoothly, leveraging years of experience integrating the platform across hundreds of clients. We are already processing thousands of trades annually across kACE Gateway, our middleware offering connecting liquidity providers to their clients. We expect these volumes to continue to grow significantly with the release of kACE OMS.”
kACE is a division of BGC Partners-owned Fenics Software Limited, a provider of pre-trade analysis, risk management, automated client price distribution, post trade processing and innovative pricing solutions for the FX derivatives and financial markets.
Fenics’ extensive range of APIs facilitate connectivity to third parties and bespoke front-end solutions, connecting its client community to counterparties, venues, regulators, and vendors.