Nittan Capital taps FENICS for Pricing and STP of FX Options Trades in Asia-Pacific

NY Headquartered FENICS, a subsidiary of GFI, has announced today that Nittan Capital, an Asia- based inter-dealer broker in financial derivatives, has licensed the FENICS Professional.

FENICS specializes in developing a robust suite of brokerage tools for FX Options, including pricing, distribution, Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, most brokers employ a risk management department tasked with analyzing the data and flow of the broker to mitigate the firm’s exposure to financial markets moves. Why Risk Management is a Fixture Among BrokersTraditionally the company is employing a risk management team that is monitoring the exposure of the brokerage and the performance of select clients which it deems risky for the business. Common financial risks also come in the form of high inflation, volatility across capital markets, recession, bankruptcy, and others.As a countermeasure to these issues, brokers have looked to minimize and control the exposure of investment to such risks.In the modern hybrid mode of operation, brokers are sending out the flows from the most profitable clients to liquidity providers and internalize the flows from customers.This is deemed less risky and are likely to incur losses on their positions.This in turn allowing the broker to increase its revenue capture. Several software solutions exist to assist brokers to manage risk more efficiently and as of 2018, most connectivity/bridge providers are integrating a risk-management module into their offerings. This aspect of running a brokerage is also one of the most crucial ones when it comes to employing the right kind of talent. One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, most brokers employ a risk management department tasked with analyzing the data and flow of the broker to mitigate the firm’s exposure to financial markets moves. Why Risk Management is a Fixture Among BrokersTraditionally the company is employing a risk management team that is monitoring the exposure of the brokerage and the performance of select clients which it deems risky for the business. Common financial risks also come in the form of high inflation, volatility across capital markets, recession, bankruptcy, and others.As a countermeasure to these issues, brokers have looked to minimize and control the exposure of investment to such risks.In the modern hybrid mode of operation, brokers are sending out the flows from the most profitable clients to liquidity providers and internalize the flows from customers.This is deemed less risky and are likely to incur losses on their positions.This in turn allowing the broker to increase its revenue capture. Several software solutions exist to assist brokers to manage risk more efficiently and as of 2018, most connectivity/bridge providers are integrating a risk-management module into their offerings. This aspect of running a brokerage is also one of the most crucial ones when it comes to employing the right kind of talent. Read this Term, analytical and STP components. According to their official press release, the solution which provides pricing and risk management for foreign Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term options to Nittan Capital, has been deployed to their Singapore and Hong Kong offices.

In addition, the STP API function of the FENICS Professional will allow Nittan Capital staff to quickly ascertain FX Option trade details and process them through their back office systems as well as streamline to their client network, without any need to re-key in the data (automatically and without human intervention).

Richard Brunt, Managing Director of FENICS, said in the corporate press release, “We are delighted that Nittan Capital has selected FENICS Professional as their FXO system, delivering a high level of integration via our locally based Professional Services Group."

"This is an exciting time for FENICS in the Asia region, as we continue to widen our client base. Our investment in development and support resources in Asia is on-going and is something that we will look to accelerate in 2014,” he added.

Head of Regional Currency Options at Nittan Capital, Chris Butcher commented in the corporate statement on the decision to take on FENICS. “We have selected FENICS Professional over the competition not only on the basis of its reputation in the FX Options market place but also because of FENICS’ ability to connect to our back office system seamlessly, making our business process more efficient and allowing us to better service our customers.”

According to information on Nittan Capital’s corporate website, the firm has offices in Hong Kong, Seoul, Singapore and Tokyo, and is one of many businesses under the brand Nittan eREX. Through its inter-dealer brokerage business it is involved in the provision of brokerage services exclusively for commercial and investment banks to trade a wide array of financial products, including over-the-counter instruments such as equity derivatives, foreign exchange products and interest rates and money market products.

In reviewing the company's FX Products offering as presented on the corporate's website, the range of instruments appear to be diverse and vary in the respective regions where they operate and are offered, such as Nittan HK, Nittan Japan, Nittan Korean and Nittan Singapore.

The firm's ultimate parent company, Central Tanshi, is presently one of the largest inter-dealer brokers in Japan and is rated “A-“ by Rating and Investment Information, Inc. and Japan Credit Rating Agency, Limited, according to the latest information on its corporate website.