Earlier today Tradeweb Markets announced the introduction of an electronic, multi-dealer-to-customer trading platform for FX options.
Digital Vega is not a highly popular product yet but a year ago State Street, which also owns one of the biggest spot fx ECNs – Currenex, has take a stake in it.
Digital Vega integrated Traiana’s Harmony CreditLink into its Medusa platform and this will allow Prime FX Brokers like Citi and Morgan Stanley better manage counterparty risk.
New York/London, February 23, 2012 – Traiana, the leading provider of post-trade solutions, announced today the launch of an enhanced Harmony CreditLink, including pre-trade and post-trade credit and risk management services for FX derivatives trading. Digital Vega is the first to integrate the service into their multi-dealer FX options trading platform, Medusa, extending the capability to their connected FX Prime Brokers, buy-side firms and liquidity providers. Leading FX Prime Brokers Citigroup and Morgan Stanley will be the first to use the service to manage credit with their clients and counterparties.
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Delivered via Traiana Harmony as a central service, Harmony CreditLink provides trading platforms, clearers/prime brokers, executing banks and buy-side firms the ability to monitor and manage credit in real-time across multiple trading venues in a consolidated view. With more robust risk controls, firms trading on Digital Vega’s multi-dealer platform, Medusa, are also expected to benefit from broader market participation and greater liquidity.
Combined with the ECN Limit Management and KillSwitch initiative launched in June 2011, Harmony CreditLink continues to have the most comprehensive set of tools to manage the risks in trading of over-the-counter FX and FX derivatives, across ECNs as well as bank platforms.
Mark Suter, CEO Digital Vega said: “Integrating the Medusa trading platform to Traiana’s CreditLink solution brings a range of significant advantages to all our clients and partners in terms of managing counterparty risk and exposure. The provision of real-time, pre-trade limit checking allows us to deliver an integrated, industry standard solution covering spot, forward and FX option trading. Additionally, this partnership provides us with an ideal solution with which to address the significant pending changes to the FX regulatory environment.”
Gil Mandelzis, CEO Traiana, said: “The continued growth of electronic trading in FX demands a new approach to manage credit and risk. Digital Vega is an exceptionally innovative firm and the first platform to offer such a comprehensive approach to electronic options trading. We’re excited to work with them on this important initiative.”