Kace Launches FX Options OMS
Posted by Colin Lambert. Last updated: February 23, 2023
Kace, a division of BGC’s Fenics Software business, has launched an order management system (OMS) for FX options traders on its Kace Pro platform.
The firm says the OMS is “unique” in offering functionality that allows FX options trading desks to leverage internal and external liquidity, with risk management tools. It has been launched with out-of-the-box connectivity to trading venues of FX options and 16 liquidity providers. It manages client orders through the quoting process and risk-offsetting workflow from multiple sources, including e-commerce platforms and third-party applications.
It adds that depending upon the clients’ preferences 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 democratises 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,” says Rich Winter, global head of Fenics market data and information analytics
“The market is evolving,” adds Richard Brunt, managing director of Kace. “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,” he continues. “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.”