Celer Technologies, a leading eFX Trading Solutions provider to banks, brokers, funds and ECNs enhances their FX Market Maker Price Engine to include inbuilt algorithms while allowing their clients to create bespoke rules for risk management strategies.
Celer is very pleased to announce the introduction of the ‘Supervisor’ which is the latest addition to their modular suite offering. Its role is to act as a rules-based engine as part of the Celer Price Engine & Aggregator. It listens to various event signals including trade data, market data, ledgers and sub-ledgers, allowing institutions to effectively monitor and manage their risk portfolios and strategies. Incorporating flexibility, a core concept which is paramount to the Celer system, the Supervisor has been designed to offer a truly granular approach to rules management, allowing strategies to be configured with a wide range of parameters and, subsequently removing the static and inflexible ‘one size fits all’ approach. These parameters include: when to hedge specific trades; size of trades; currency pairs; time of day; positions; toxicity; and volatility. Additionally, these can be managed at a stream level all the way down to an individual client.
Reducing positions based on certain metrics is a key feature of the Supervisor. These rules have been designed and implemented through close co-operation with our clients which has enabled us to implement some very creative solutions. The result is a system where our clients now have the ability to service their clients with trades and strategies that they were previously unable to support.
One of the predominant challenges when managing FX risk is the ability to periodically adjust strategies at any given moment. In light of this Celer Tech has created a sandbox area within the ‘Supervisor’ called ‘Dry Run Mode’ which will simulate actual behaviour in a live Production environment. This feature has been very well received among our clients as they now have the added comfort of being able to rigorously test new rules and strategies against live markets with no risk, before switching the rule into ‘Live Mode’.
Building an FX trading system can be a very complex, expensive and time-consuming investment and has the potential to become extremely costly with a few ill-informed choices. By using Celer’s robust system and associated smart event-driven functionality, clients are able to manage their day-to-day risk with the flexible controls and risk management tools required to manoeuvre in today’s ever-changing risk environment.