Korean software company Koscom has until now confined its business to providing electronic trading solutions to the securities and futures markets in the provision of IT infrastructure, however as a result of the company’s recent selection of smartTrade Technologies’ order routing system, it could expand its technology offering into other asset classes such as foreign exchange.
Refinement of Liquidity – New Ruling To Set The Pace
Subsequent to new ruling by the Korean regulatory authorities, namely the expected amendment of the Capital Market Consolidation Act, Alternative Trading Systems (ATS) which will soon emerge in Korea, Koscom became aware that there will be implication of a better quality of liquidity available but also new technical challenges for smart order routing and aggregation.
For this reason, the company conducted a year of critical evaluation of suitable companies in order to seek out the most suitable solution for the Korean market, the company selected smartTrade’s Liquidity Management System (LMS) smart order routing solution based on its cultural sustainability and global experience in this field.
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smartTrade is no stranger to the Asia-Pacific region, further substantiating Koscom’s conclusion of understanding of business culture in the region. Earlier this month, smartTrade partnered with Japanese FX technology provider SBI Liquidity Market in the inclusion of the LiquidityFX aggregator to SBI’s infrastructure of FX trading systems.
Adding Koscom to smartTrade’s corporate client base is quite a result for the company, as it is a substantial organization. Koscom was established as a joint initiative by the Korean Ministry of Finance and the Korea Stock Exchange, hence technology provision for the securities market being Koscom’s natural environment since its incorporation in 1977. This has carved out a successful business, with an annual revenue of 338 billion Korean won and a payroll of 770 employees.
In a statement issued by the company, Woo Joo Ha, CEO and President of Koscom explained: “With the adoption of ATS, best execution will be key for the industry and we need a flexible, open and scalable solution which can evolve with us. smartTrade’s smart order routing unique design will allow us to implement finely tuned strategies in a very short time frame.”
Facilitation of Koscom’s Expansion into the FX Space
On the subject of expanding into FX, Woo, Joo Ha added: “As the Liquidity Management System is a cross-asset platform, we’ll be able to expand the technology to other asset classes such as the foreign exchange.”
David Vincent, smartTrade Chief Executive Officer and CTO commented in a public statement, saying “smartTrade is happy to accompany Koscom in this new adventure. The Korean market is at the dawn of exciting changes that we are ready to support thanks to our mature and adaptive technology.”