FlexTrade Systems has announced a significant integration with LoopFX, allowing mutual clients to benefit from enhanced liquidity options and execution capabilities for large foreign exchange (FX) trades. This development centers around the integration of FlexTrade’s FlexFX order blotter with LoopFX’s specialized dark pool, which focuses on matching substantial FX transactions.
LoopFX is designed to cater to Asset Managers and Banks by facilitating dark mid-point matching for trades exceeding $10 million. This feature aims to lower execution costs and enhance the quality of execution processes. FlexTrade’s FlexFX can be utilized as an independent solution or integrated into the multi-asset Execution Management System known as FlexTRADER EMS.
With this collaboration, clients can seamlessly incorporate LoopFX’s matching capabilities into their FlexFX workflows. This means that Asset Managers can directly send orders from the FlexFX blotter to LoopFX without needing additional development or modifications to existing processes. Furthermore, the integration allows for the utilization of trading performance data within FlexFX, which can be analyzed using FlexTrade’s Transaction Cost Analysis tool, FlexTCA, to optimize execution quality.
Looking to the future, there are plans to further enhance this integration. This will involve merging FlexFX’s advanced automation features with LoopFX’s matching capabilities. For instance, users will soon be able to utilize the dynamic automation rules provided by FlexAlgoWheel to automatically check for potential matches with LoopFX before adhering to predetermined execution protocols.
A representative from a significant investment firm highlighted the importance of liquidity and execution efficiency, noting that this partnership provides essential tools to enhance execution quality for larger trades, particularly where managing information leakage and market impact is crucial.
FlexTrade’s leadership emphasized that the FX trading landscape is rapidly evolving, with new solutions constantly emerging that could positively influence trading efficiency. By integrating with LoopFX, the FlexFX platform will afford clients enhanced access to liquidity for substantial FX trades, allowing them to refine their execution processes while minimizing market impact.
FlexTrade Systems is known for delivering tailored multi-asset execution and order management solutions, addressing the unique needs of both buy-side and sell-side financial institutions. Their approach consists of forging deep collaborations with major capital market firms, developing flexible technology and innovative tools that confer a competitive edge. Their engineering teams focus on crafting adaptable technologies and open architecture, enabling the continuous evolution and scaling of sophisticated trading solutions aligned with clients’ strategies.
LoopFX specializes in facilitating large outright FX trades, offering mid-point matching capabilities while ensuring no information leakage occurs during transactions. The founding team comprises experienced professionals from renowned financial institutions, lending notable expertise in the FX market. The company aims to create a more efficient trading environment for large transactions by reducing execution costs and protecting proprietary information.
This partnership reflects both companies’ commitment to enhancing transaction capabilities and providing clients with more effective trading tools, significantly benefiting those engaging in large-scale FX trading. The integration is seen as a pivotal step toward improving execution quality and overall trading effectiveness in a rapidly changing market landscape.