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 optimise 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 analyse 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 optimising 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
About KX
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.
