Forex Magnates reports a new product called 4x|Box that has just been revealed from a combined synergy between adding foreign exchange liquidity from FxSpotStream (FSS) into the LiquidityFX module of applications from smartTrade Technologies (smartTrade), aimed at providing FX in a box, hence the creation of the new name for the product.
The trend of companies joining forces to create a joint product from each of their existing solutions has been on the rise, as per recent similar stories, and as a means to solve a need vis-a-vis effective collaboration (as it can also be easier to cooperate than compete, in some instances).
With regards to 4x|Box, the new name has been created by plugging in FSS liquidity, which consists of its consortia of banks which act as Liquidity Providers (LPs) which funnel their liquidity into one stream via FIX api into the LiquidityFX suite of modular applications which smartTrade offers firms in order to manage their foreign exchange operations, including order and risk management, aggregating rates, execution, hedging and price distribution, as well as reporting functionality.
Synergy of Two Existing Products to Form New Offering
FSS is a subsidiary of LiquidityMatch LLC, and now has nine liquidity providers including BofA Merrill Lynch, Citi, Commerzbank AG, Goldman Sachs, HSBC, J.P. Morgan, Morgan Stanley, UBS and its latest member BNP Paribas which joined less than two weeks ago. Forex Magnates opines that the synergy was no easy task as it would have required approval from each of the consortium members providing liquidity within the FSS solution.
The synergy seems to be a logical one since several of smartTrade’s clients who were using LiquidityFX with FSS had incidentally served as case studies to demonstrate the synergistic effects of the two combined solutions, thus some clients were already onboard with the solution, under the combined respective products.
This was apparently the driver to create a new name out of the two offerings, packaged tightly into the 4x|Box product brand name. Therefore, a broker that needs LP’s and the managed infrastructure and software to handle those liquidity sources, is essentially getting FSS and LiquidityFX, when they license the 4x|Box product.
CEO David Vincent of smartTrade Technologies Talks to Forex Magnates
ATFX Institutional Business Continues to Expand: Adding a New Prime BrokerGo to article >>
As part of our coverage around time of the announcement, Forex Magnates spoke with smartTrade Technologies, Chief Executive Officer, David Vincent who explained,“The 4X|Box is a natural answer to the needs for both better liquidity and affordable best of breed technology. Most people we spoke to were struggling with the existing technology on one side and the fact that they didn’t get good prices from the LPs. The lack of transparency and visibility on how orders were getting filled, the tiny spreads, the feeling that they were not treated fairly by the LPs are just some of the complaints we heard.”
Mr. Vincent concluded regarding the launch, in response to questions we posed, “On the technology side it is either that the solution the clients were using wasn’t meeting their requirements or it was just too expensive. So the joint offering is the solution that many people in the market are looking for and the benefits are facilitating the adoption of technology, lowering costs and increasing profitability.”
The LiquidityFX suite of components that come packaged within that product, as well as part of the 4x|Box (except for the FXSpotStream liquidity not visible in the diagram below), can be seem in the following diagram excerpt from smartTrade Technologies website:
The synergy is expected to make it easier for firms looking to access FXSpotStream with a turnkey solution, as the integration of FIX API’s into firm’s proprietary and/or 3rd party dependent technology infrastructure can often be time consuming and resource intensive, like any integration project.
Thus the time to market, and cost-ratios are things to consider when deciding on in-house development or outsourced solutions. Even though many firms may do both when it comes to their customer-facing platforms, although the back office systems and universe of programs and software needed to run a brokerage almost always have some dependence on outsourced/licensed or 3rd-party solutions, and thus is commonplace for companies to use, along with their own proprietary systems.
FSS CEO Highlights Synergy Built on “Longstanding Relationship”
Commenting in the official press release, Alan F. Schwarz, CEO of FXSpotStream LLC said,“The 4X|Box brings to market a unique, fully integrated end-to-end technology and liquidity solution not previously available to FX market participants. It combines the best that FXSpotStream and smartTrade Technologies offer their clients today and leverages the longstanding relationship FXSpotStream has established with smartTrade. As we continue to grow our service offering we will leverage functionality and tools our technology partners are already making available to our clients and make those tools available to all of our clients interested in transacting with the leading FX banks on a bilateral, fully disclosed no brokerage basis.”
The news follows smartTrade’s recent retail forex brokerage customer, CMC Markets, adding to its list of substantial foreign exchange providers predominantly in the institutional space and also growing on the retail side.
Not forgetting its driver of such sales efforts, smartTrade continues to expands its number of personnel with the latest addition of Lalit Nathwani to the role of Business Development Director, as Forex Magnates reported in early March this year, as the firm continues to have open positions listed on its website for eligible candidates.