Peresys, a provider of equities and derivatives trading solutions as well as messaging applications and services in South Africa, has entered into an exclusive partnership with two major banking institutions, Standard Bank and Investec, to provide their broker intermediaries with a fully automated offering for trading currency futures. Currency futures started trading with the US dollar / Rand future on Yield-X, the Johannesburg Securities Exchange’s (JSE’s) interest rate exchange on Monday, the 18th June.
Currency futures are derivative contracts that allow individual investors to trade electronically in an underlying exchange rate for a period of time in the future.
“This is an exciting development for the individual investor who will now be afforded the opportunity to gain exposure to specific exchange rates and take long or short positions depending on their view of the future direction of a currency,” says Ray Pretorius, director of FIX services and applications at Peresys. Trading currency futures will allow the individual investor to speculate as to whether the rand will appreciate or depreciate against the dollar, Sterling/Rand and Euro/Rand to follow towards the end of the year.
Pretorius says that Investec and Standard Bank will publish bid and offer prices to their brokers via the perFIX trader front-end, allowing brokers to trade on behalf of their retail client base. These trades will seamlessly be reported through to Yield-X, greatly reducing the amount of admin required by the brokers. The process requires minimal manual intervention and will facilitate the rapid growth in volume of transactions anticipated as keen interest has been shown in the currency futures product.
perFIX trader is a centrally hosted; FIX compliant Execution Management System (EMS) that provides off the shelf functionality. From a single login a user can access Equity trading (Direct Market Access and Order Routing), Equity Derivative Trade Reporting and Over-the-Counter (OTC) solutions. This technology is hosted in the Peresys Business Process Network (BPN), a secure, high speed private network that provides connectivity to the leading fund managers, hedge funds, banks and brokers, both locally and internationally. PerFIX trader users have a single front-end for order and trade management of their Single Stock Futures (SSF), Currency Futures (CF), Contracts for Difference (CFD) and Cash Equities equity dealing. Trading strategies and Algorithmic functionality are also available on certain products.
Time to market and flexibility are key drivers of this popular solution that allows brokers to execute transactions for their retail clients without the need to install any new software or incur hardware expense. perFIX provides interfaces directly to Market Maker trading systems as well as SAFEX and YIELD-X. Access to these two derivatives exchanges greatly reduces the administration required by Brokers in trading with Market Makers and reporting to the relevant exchange in a seamless process, automated with the trading function.