TransFICC Launches Customer Trading

Fixed income and derivatives market connectivity provider TransFICC has launched TransACT, a new service that automates RFQ workflows for banks on dealer-to-client (D2C) venues, with service in production at an un-named global dealer.

The firm points out that D2C trading venues support multiple RFQ negotiation workflows, and all are different, making it difficult for banks to build automated negotiation systems to respond to customer RFQs. It is a complex and time-consuming process to automate these workflows, as all state transitions need to be mapped, codified, tested, and maintained.

TransACT (Automated Customer Trading) simplifies the process and reduces the time to market for a bank to develop automated trading solutions for customers, TransFICC claims, explaining the bank provides the customer price and TransACT manages all other aspects of the RFQ negotiation.

The new service is available for immediate use on MarketAxess, Tradeweb, Bloomberg and TruMid for US credit, with the service expanding to other RFQ assets, including IRS, later this year. It automatically negotiates RFQs on dealer instruction, and is provided as a hosted service where venue connectivity and all negotiation workflows are automated.

All that is required to integrate with TransACT is the ability for dealers to provide a price stream and an execute/reject instruction for a given RFQ, the firm states, adding, this is done using a simple API accessible via websocket.

“Our auto-negotiation service provides the code, support, and security out of the box,” says Judd Gaddie, co-founder of TransFICC. “The only bank requirement is to have a pricer, meaning the service can quickly go live. What used to take months or years for a bank to deploy has been reduced to a few weeks.”