Advanced Forex Market Making and Hedging
Deltix’s award-winning technology enables Forex Market Makers to beat the competition by allowing precise expression of adaptive pricing, risk, hedging and smart order routing algorithms.
Profitable FX Market Makers have the ability to develop and customize their own dynamic price engines and implement risk, hedging and execution algos on their own infrastructure based on their own quantitative intelligence without dependency on their software vendors.
Advanced Customizable Price Construction Engine
Deltix enables you to tailor highly granular price construction algorithms for different quote sizes, customer segments and individual customers based on practically unlimited amount of input factors. Parameterized algorithms can be changed on the fly (e.g. spreads, sensitivities). Low latency connectivity to multiple dealer platforms makes these prices available for customer execution.
Adaptive Customizable Hedging
Advanced hedging algorithms, developed by users, apply rules to currency positions as trades are executed and as prices change thereby enabling you to deploy extremely precise hedging rules. Dynamic parameterization allows you change to algo behaviour on the fly and so respond to unexpected market conditions in real-time.
Smart Order Routing
Individual order books from multiple liquidity providers and aggregated order books by currency pair are maintained in Deltix TimeBase. Adaptive Smart Order Routing defines the best execution plan and splits hedging orders into child orders for best execution at multiple venues.
Research, Back-testing & Simulation: Same Models for Research & Production
Both price construction and hedging algorithms are designed, back-tested and simulated in Deltix QuantOffice against data collected from multiple liquidity providers and recorded in TimeBase. Once developed and refined, models are deployed “as is” into the production market making environment.
Visual representation of AUD/CAD price construction with multiple tiers, and hedging orders
Visual representation of EUR/USD order book aggregated across multiple liquidity venues
Please also visit our MARKET MAKER ARBITRAGEUR AND HEDGER website.