Software as a Service trading and liquidity provider TradingScreen announced today that its FX suite of products meet Dodd-Frank requirements. The news follows an earlier announcement today from Integral as financial firms are implementing the requirements ahead of Wednesday’s May 1st date when rules are to go into effect. For technology firms, meeting requirements ahead of time allows their clients to continue operating their trading platforms without experiencing disruptions.
To learn more about their TradingScreen, their target audience, and the importance of meeting Dodd-Frank rules, we reached out to the firm. Answering how the implementation of the rules are effecting financial firms bottom lines and what opportunity costs they are suffering as a result, Ray Spoljaric, Head of Trade OTC Sales for the Americas, TradingScreen stated “Financial firms are turning to TradingScreen for our cloud-based trading solutions to stay ahead of regulatory change without massive investment in IT staff or hardware. To be sure, there are real costs for the buy side associated with Dodd-Frank compliance. Different firms face difference challenges around regulation depending on their size, strategy, and geography, so it’s hard to generalize across the entire buy-side industry about whether this is stifling growth, or creating barriers to new entrants. Still, I would say that the days of starting a hedge fund in your garage are now over.”
In terms of their client base, Spoljaric explained “Our target audience is the buy side – hedge funds and institutional asset management, pension funds, wealth managers (private banks, family offices, external asset managers, registered representatives, and high net-worth individuals) as well as broker/dealers. The largest target for us historically speaking is institutional asset managers, like AXA Investment Management. Still, we’re doing healthy business with all the audience segments above because of our adaptive and flexible product offering accommodating all aspects of FX trading, i.e. trading as an asset class, hedging, white labeling etc.) “
TradingScreen Meets Dodd-Frank Foreign Exchange Requirements
NEW YORK – April 29, 2013 – TradingScreen Inc. (TradingScreen), the leading independent provider of liquidity, trading, and investment technology via SaaS, today announced that it is in compliance with the final CFTC rules under the Dodd-Frank Act covering certain foreign exchange (FX) transactions, requiring firms display mid-point pricing on foreign exchange pre-spot, forward outrights, non-deliverable forwards and swap trades.
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By building in the new functionality ahead of deadline, TradingScreen ensures that swap dealers and their clients experience uninterrupted service when the Dodd-Frank rules go into effect on May 1, 2013.
“The buy side and sell side face many challenges in a constantly hanging regulatory environment,” said Jean-Philippe Malé, Head of OTC for TradingScreen. “TradingScreen is working hard to ensure that our clients and partners stay ahead of these mandates, without bearing additional costs or delays.”
This mid-point price information, which is either calculated by TradingScreen or supplied by brokers, can also be used to assist with clients’ transaction cost analysis (TCA).
“The new Dodd-Frank requirements add a great deal of transparency and insight into foreign exchange trading,” said Jon Fatica, Head of Analytics for TradingScreen. “The mid-point price information makes our current transaction cost analysis platform even more valuable, helping traders identify lower-cost execution venues and increase alpha.”