A London-based prime-of-prime broker and liquidity solutions provider has announced the introduction of Parallax, a cutting-edge risk share model specifically designed for brokers. This innovative model aims to help brokers enhance the value derived from their client flow by fostering greater transparency and aligning risk-sharing in a performance-oriented manner.
The Parallax system, developed by a skilled team consisting of trading, quantitative analysis, and technical development experts, allows brokers to participate in both the risks and rewards associated with internal trading activities without the burden of investing in expensive risk management infrastructure. When integrated with the firm’s established institutional-grade pricing, Parallax presents brokers with a structured opportunity for diversifying their revenue streams.
A representative from the company noted that Parallax was created in response to a strong demand from clients for increased transparency and improved collaboration within traditional risk share frameworks. Many brokers often remain unaware of how their trading flows are performing. Parallax addresses this issue head-on by offering clients daily insights into their performance, ensuring they are fully informed about their earnings and the reasons behind them. The organization believes that this level of clarity has been absent from current risk-sharing programs available in the market, and they aim to assist clients in overcoming this challenge.
Parallax sets a new benchmark in risk-sharing models, highlighting institutional-grade pricing, rapid execution, daily performance tracking, and straightforward, pre-defined payout structures. This new offering strengthens the overall portfolio of services with the inclusion of the firm’s sophisticated risk management tool, Radar, which provides real-time analytics regarding brokers’ performance metrics.
The Parallax model is now accessible to brokers worldwide, with the flexibility to create customized commercial agreements tailored to individual flow characteristics and business models. Interested parties are invited to express their interest in the Parallax program.
The organization operates under multiple regulatory frameworks, including the FCA, SFC, and CIMA. It has established a solid reputation as a leader in algorithmic trading and as a reliable electronic market maker. Its services extend to offering liquidity, innovative proprietary technology, prime services, and instantaneous risk analytics for institutional clients and trading venues around the globe.