Kalahari, the global Real Time Complex Analytics Platform provider, today announced that it is releasing its latest kACE2 FX pricing module. Banks and brokers from across the globe will now be able to access the new system which has been trialed extensively in Northern Trust Bank, Inter dealer Brokers Tradition and Nittan Capital in Tokyo.
Kalahari, a provider of unique calculation and publishing solutions across multiple asset classes, has added an extensive range of brand new features to its new FX module. To meet the high demand in the market of better FX pricing, the new module incorporates advanced features such as OIS Basis, step curves for better OIS pricing, dedicated Euro based currencies and a new ‘Reverse FX’ pricing screen.
An updated Bloomberg BPipe adapter has also been included in this release as well as improved data aggregation. The new aggregation functionality increases the number of data sources that are now available within the system. This improves the data quality used in the curve construction, resulting in superior pricing of FX Forwards.
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Matt Wilkes, Director of Analytics at Kalahari, says ‘There are major difficulties in pricing FX forwards in the current market. FX Basis is now fundamental and traded in its own right with the OIS market as the de facto funding curve; we needed to ensure the yield curves used in kACE2 were in line with today’s markets. To be competitive you need predictive pricing from real-time basis adjusted yield curves. The customer feedback we are getting on this approach is extremely positive.’
Lee Davies, Head of FX Forwards at leading brokers Tradition in London, says ‘It’s tough out there, and in today’s markets you need to give your banks a keen edge. Tradition has always used the very best technology to stay ahead and the guys at Kalahari have listened to our needs and delivered a system that allows us to be competitive. This new model gives us faster and more accurate pricing.’
Alex Moreno, for Nittan Capital in Tokyo, says ‘Good source data is vital to pricing particularly in the Asian time zone when liquidity is less. kACE2’s data aggregation is superb and we now get really accurate pricing during the Asian day.’