Traiana expands CreditLink initiative with kill switch support for single dealer platforms
15 July 2014
London, 15 July 2014 – Traiana, the leadingprovider of pre-trade risk and post-trade processing solutions, announces today that ithas extended the scope of its CreditLink service to include a kill switch capability forsingle dealer platforms in foreign exchange (FX) trading. Citi’s platform, Velocity, isthe first single dealer platform to enhance its connectivity with CreditLink to supportthis new capability.
The introduction of a kill switch adds to the existing limit monitoring capabilities ofCreditLink for single dealer platforms, and will ensure that the risks associated withalgorithmic and high frequency trading can now be effectively managed in real-time onthese platforms.
Jill Sigelbaum, Head of FX, Traiana said: “The expansion of CreditLink’s kill switch tosingle dealer platforms improves risk management controls in the FX markets, bringing thebank trading portals into line with the capabilities we’ve built with the ECNs. Byenabling prime brokers and their clients to monitor risk in real-time and take swiftactions, the market will be further insulated from technology risks and the losses theycan rapidly create.”
Bapi Maitra, Global Head of FX Institutional e-Commerce Sales, Citi said: “We at Citihave been very focused on enabling industry-wide solutions to reduce systemic risk andpromote transparency. The implementation of Traiana’s real-time risk management capability,including its kill switch, is a vital step in that direction. We are excited to partnerwith Traiana to take a leading role on these initiatives, and to provide best-in-classrisk control solutions for our clients.”
Beginning in June 2011, Traiana and leading prime brokers launched an initiative todeploy real-time kill switches to major multi-dealer FX trading platforms, includingBloomberg Tradebook, Currenex, EBS, FastMatch, FXCM’s Institutional Platform, Hotspot FXand Thomson Reuters. However, in recent years electronic FX trading has grown on singledealer platforms and now represents a key area of technology risk in global FX markets.
Using CreditLink, prime brokers have the ability to monitor their clients’ credit riskand trading activity across multiple ECNs and single dealer platforms on a real-time basis.As a result they can identify limit breaches, modify credit lines and terminate tradingactivity. CreditLink also supports a wide range of asset classes and trading models, servingas a central risk management infrastructure across spot FX, FX derivatives, cleared swapsand exchange traded derivatives.
CreditLink provides trading platforms,clearers/prime brokers, executing banks and buy-side firms the ability to monitor andmanage pre- and post-trade credit in real-time across multiple trading venues in aconsolidated view. CreditLink supports all trading models across FX, exchange tradedderivatives, interest rate derivatives, credit default swaps and fixed income and serveshundreds of buyside, brokers, prime-brokers and trading venues.
Traiana, Inc. (www.traiana.com) provides global banks, broker/dealers, buy-side firmsand trading platforms with services to monitor pre- trade risk and automate post-tradeprocessing of financial transactions in listed and over-the-counter trading markets.Traiana's solutions and the Harmony Network have become the market standard for post-tradeprocessing of foreign exchange, exchange traded derivatives, fixed income, CDS andsynthetic and cash equity transactions. Traiana, an ICAP company, is headquartered in NewYork City with offices in Chicago, Hong Kong, London, Singapore, Tel Aviv and Tokyo.