The Challenge:  

In the increasingly competitive FX market, there are three primary objectives for an FX Maker: low latency in reacting to market movements, offering highly customized liquidity to clients, and avoiding externalizing flow.

• Slow technology, built primarily for aggregation and redistribution, does not meet the performance demands of pricing clients from high-speed publishers such as Tier 1 banks, non-bank market makers, or ECNs.
• Technological limitations mean that for many providers, it's impossible to offer hundreds of liquidity streams to clients. Providing a tight price in one pair leaves you vulnerable to being overrun in others.
• Advanced hedging capabilities such as algos, internal ECNs, and advanced passive/pegging strategies require expensive, advanced algo trading solutions that are not generally available.

The Solution:

Quod FX Maker - a cutting-edge technology platform designed specifically for high-performance market makers in FX. The microservices application uses hardware acceleration and shared memory to deliver low latency performance, provide infinite scalability for unlimited tiers/streams to clients, and a range of advanced algo trading features including internalization.

1. Low latency liquidity publication with unlimited tiers. Quod FX MM is unique in its ability to offer a single session to clients with per CCY Pair customized pricing. Offer 100+ tiers of liquidity and subscribe clients to specific pricing per pair across different tiers to create a glove-fit liquidity profile for their trading behavior. Never get overrun again and always be at the top of their book.
2. 100% passive hedging can be achieved with our advanced risk module. Segregate trades based on the characteristics of the flow and client. Create micro pools of internal risk that allow real-time skewing of the price. Publish into an internal ECN and run algos/price construction against the internal net risk book. Passively hedge the internal ECN into external markets using ultra-passive multi-day pegging.
3. Create your price stream factoring in real-time market behavior such as volatility, events, positions, and other signals to widen/skew pricing to clients to ensure a precise and safe price.
   

Quod Financial technology represents the bleeding edge of performance for an FX Sell-Side institution looking to compete against advanced Tier 1 or Non-Bank market makers.

The Benefits:

The overall benefits of this solution include:

• Achieve 100% passive hedging. Find our more 
• Customize pricing for all your clients - on all pairs.
• Use real-time data to drive your pricing for maximizing profitability.