FairXchange, a company that specialises in financial markets data science, announced this Tuesday that it has launched a new functionality within its Horizon product – a Pricing Stack Analysis feature.
According to the statement seen by Finance Magnates from FairXchange, the new feature provides financial institutions with information that allows them to make more informed and data-driven decisions regarding how they interact with liquidity providers.
Specifically, the Pricing Stack Analysis feature provides a complete view of a financial institution’s pricing stack, giving them insight into the dynamics of their liquidity. This, according to FairXchange, then allows banks, brokers and hedge funds alike to understand the impact of their Liquidity Provider selection.
FairXchange Feature Helps Assess the Impact of Liquidity Providers
Commenting on the new feature, Guy Hopkins, Founder and CEO, FairXchange said in the statement: “A fundamental issue that the market currently faces is that financial institutions find it very hard to measure the financial impact of any changes to their liquidity provision.
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“Conversely, Liquidity Providers find it hard to demonstrate the value they can bring to a client, how much more money they can save them or how they can win more clients through data-driven discussions. We have developed our Pricing Stack Analysis to address these issues, providing concrete evidence about the impact of liquidity decisions on a financial institution’s P&L.
“FairXchange provides metrics that help analyse different events associated with foreign exchange (forex) trading alongside the actual fills.
“With margins so tight in FX, firms will increasingly need to rely on data-driven decision making in order to make greater profits. FairXchange has a proven track record in applying our domain expertise to help customers craft a narrative from their data,” continued Hopkins in the statement.
“Pricing Stack Analysis propels our offering to another level as we can now crystallise the results from our analysis in monetary terms – i.e. measuring cost savings in real dollars. This makes it far easier to justify the subsequent cost of onboarding a new Liquidity Provider, for example. Helping them identify tangible evidence of the potential savings they can make is a core part of our value proposition.”