FlexTrade Systems, a company specializing in multi-asset execution and order management systems, has announced a new integration with LoopFX, a venue focused on facilitating large FX trades. This integration allows users to access LoopFX’s matching functionalities directly from the FlexFX order blotter, enabling asset managers and banks to execute trades more efficiently.
LoopFX is designed for large trades exceeding $10 million, helping clients reduce execution costs and optimize their trading processes. By utilizing dark mid-point matching, LoopFX minimizes market impact and information leakage, which are critical concerns for large trades. FlexTrade’s FlexFX solution can be utilized as either a standalone option or as part of its integrated Execution Management System (EMS), called FlexTRADER EMS.
With this new integration, mutual clients of both companies can seamlessly execute trades from the FlexFX order blotter to LoopFX without needing to alter their existing workflows or undertake additional development. Furthermore, the performance data collected in FlexFX can be analyzed using FlexTrade’s Transaction Cost Analysis tool, FlexTCA, to further refine execution quality.
Looking ahead, there are plans to expand this integration, allowing for the automation of trading processes. By utilizing customizable automation rules through FlexAlgoWheel, users will be able to send trades to LoopFX to check for automatic matching fills, adhering to their pre-established execution guidelines.
A senior trader from Insight Investment highlighted the importance of accessing additional liquidity tools for improving execution quality. The collaboration between the two companies is expected to enhance the efficiency of larger trades while minimizing risks associated with information leakage and market impact during execution.
Leadership from both organizations expressed excitement about the partnership. The integration is seen as a step towards addressing the evolving demands of FX trading, providing clients with access to enhanced liquidity solutions. The integration with LoopFX aims to streamline the execution process, allowing clients to leverage advanced tools for better trading performance.
In summary, the collaboration between FlexTrade Systems and LoopFX represents a significant advancement in FX trading. By integrating LoopFX’s capabilities into the FlexFX platform, users will benefit from increased efficiency and reduced risk when executing large trades, positioning themselves effectively in an increasingly competitive landscape.