Tradition Partners LMRKTS for FX Compression, Optimizing Counterparty Risk

The new FX compression solution is aiming to cut counterparty exposures and free up cash flow.

One of the big wholesale and over-the-counter (OTC) brokerages Tradition has just partnered up with LMRKTS to deliver to its clients a new solution for optimizing counterparty risk. The offering which Tradition is delivering to the market is developed in conjunction with one of the top compression providers.

LMRKTS recently participated in the development of the first multilateral FX compression service. It is designed to lower counterparty exposures for clients and optimize cash flow structures.

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In its initial stage, the partnership between Tradition and LMRKTS will focus on the execution and compression processing for FX forwards. An initial release of the solution is expected during the current month with a full fledged release to clients scheduled before the end of 2016.

LMRKTS is a trusted and independent third-party that will enable our clients to retain sensitive trade information

The companies will be adding additional assets as the offering gets deployed. Tradition is enabling the scaling of the offering which is developed by LMRKTS, with the companies eyeing global big banks as top clients.

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Commenting on the announcement, the Interim Head of FX Andy Coyne said: “Fostering introductions and watching new banks test and sign on to the platform has been rewarding in and of itself, it speaks to banks’ priority of lowering counterparty exposures and associated costs.”

“The combination of LMRKTS’ analytics with Tradition’s distribution, pipes and support allows both firms to showcase and focus on what they offer best,” he elaborated.

The management of LMRKTS mainly consists of senior trading and post-trade industry professionals. The FX solution has been in the works for over a year now and the partnership with one of the biggest brokers is aiming to open the gates for the cost-effective offering into the market.

Tradition will be effectively providing the execution venue for the FX compression service which LMRKTS has developed.

“LMRKTS is a trusted and independent third-party that will enable our clients to retain sensitive trade information, reduce costs and risk exposures without compromising trading strategies,” commented Dan Marcus, Global Head of Strategy and Business Development.

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