Digitec Launches D3 Channels for FX Swaps Pricing

Digitec has unveiled D3 Channels, a new service which enables traders to automate the generation and distribution of multiple trader FX streams from single core price.

The new service is already live at an-unnamed major European FX bank, whose strategic goal, Digitec says, was to attract more trades, and improve speed and accuracy by limiting manual trader interventions

D3 Channels is the latest addition to D3 Pricing, a platform for pricing, curve and yield curve construction. The new service, designed for trading desks which directly manage client pricing, enables traders to establish maintainable, rule-based and scenario-based logic that automates pricing decisions based on tier and volume band.

Using D3 channels, a trading desk is able to form and manage a core price, then continuously offer multiple prices for the same instruments and tenors depending on a client’s tier, trading volumes, and market conditions, Digitec explains.

“We developed this service in response to traders and e-FX businesses which want more workflow automation but still need to control the trader element of their client pricing,” says Peer Joost, CEO of Digitec. “D3 Channels simplifies the management of volume-specific and tier-specific pricing adjustments and ensures that the system automatically determines the exact price to be sent to clients.

“The launch of D3 Channels enhances our suite of D3 Pricing services, which drive efficiency in FX swaps pricing and electronic trading workflows,” he adds. “Our modular services address banks’ needs in market data collection, core pricing, distribution and order management.”

MarcoKuper, chief product officer at Digitec, adds, “D3 Channels enables trading desks to scale their operations, moving higher volumes to electronic trading channels. The new service significantly reduces the number of manual responses to individual quote requests, meaning traders can focus on creating, executing, and monitoring active strategies by defining automated workflows. As a result, the desk can provide accurate, smart, granular market-sensitive pricing faster than ever.”