InFoRex Pricing Engine

Introduction

The need for a real-time, accurate and reliable e-FX pricing engine is constantly increasing with the growing online FX market. FX Pricing Engine is a comprehensive foreign exchange quoting solution for financial institutions, a real time application for creating and broadcasting client specific, tradable price streams within the organization between FX portals, core banking system, treasury STP, etc. This offers our clients the right platform for building an automatic quoting channel to meet their particular requirements.

Workflow of our Pricing Engine

Data Gathering

This module has been developed to perform seamless integration with any type of data provider (Bloomberg, Reuters, Six, etc.) and is flexible to allow broadcasting into any channel or terminal type. The quoting process starts with real-time data import and results in a fixing rate definition according to the pre-defined spread rules.

Flexible Setting Options

Our pricing engine provides a broad range of setting possibilities in terms of modeling spreads and tolerance levels, setting fixing periods and quoting tailor-made offers for various client groups. The proper spread definition is the key business driver of quoting prices, it is supported by our pricing engine on a multidimensional level by:

• currency pairs,
• client groups,
• traded amount.

During a market day several fixing periods are possible: as more frequent quoting periods reflect prices more precisely, our system provides fixing in every single hour. In response to market volatility, the system comprises a built-in Early Warning System that allows setting of tolerance levels that notify the dealers. In line with growing competition among financial institutions the need for tailor-made quoting is also increasing. Flexible spread settings can be assigned to each tier created by the bank based on client profile and traded batches.

Broadcasting:

Quoted prices can be distributed in real time to the given destinations: this functionality means integration with the treasury system, e-trading solutions, internet bank, core banking systems, etc. Integration with our own InFoReX STP treasury solution is advised, however, the integration with other systems is also seamless.

Why choose the FX Pricing Engine?

• Improve speed – full or partial automation of pricing provides increased quoting frequency
• Differentiate clients – classify group of clients with similar profile, then quote specific price
• Reduce errors – tolerance monitoring provides a useful tool for dealers against losses when rates fluctuate
• Cost efficiency – as a flexible software developer FX Software provides tailor made solution fully pegged to the client’s exact needs
• Simple rollout – flexible modular properties of our pricing engine accelerate implementation process