BAXTER Mark to Market Monitor

BAXTER Mark to Market Monitor With the profile of FX trading changing dramatically over the past few years, especially with the advent of aggressive hedge fund trade origination, Banks have had to be confident that their pricing remains both competitive and profitable. In order to do this, they need up-to-the-minute, dynamic information on trade and

Editorial Team
May 12, 2021
2 minutes

Tagged under:
Digital Wallets

BAXTER Mark to Market Monitor

With the profile of FX trading changing dramatically over the past few years, especially with the advent of aggressive hedge fund trade origination, Banks have had to be confident that their pricing remains both competitive and profitable. In order to do this, they need up-to-the-minute, dynamic information on trade and price flow from their customers.

BAXTER Solutions undertook the development of the Mark to Market Monitor (MMM) on behalf of a market maker customer to satisfy this requirement, as a result of which, its is now used by some of the world’s top trading institutions.

Scope

With the aim of allowing price and trade performance being analysed on a real-time, live basis, the functionality of MMM takes the traded price and compares it against market price action in a set of time-frames immediately following the trade, typically 5, 20 and 60 second intervals.

Via a user-friendly colour-coded screen, traders can see instantly whether they are “in”, “on” or “out” of the money. Flow traders can see the specific performance of individual customers and respond accordingly.

In addition, it allows specific currency pairs to be examined and the results analysed from a profit & loss perspective.

Customer analysis includes the ability to examine full trade history and drill down to individual trades, as required.

Benefits

The results generated by the MMM tool have allowed Banks to re-frame their pricing in “Real-Time” in order to defend their P&L against aggressive trading customers, and to refine their prices into markets and customers in order to be optimally competitive.

Increased customer knowledge, improved trade visibility and optimised price-making have positively impacted on customer service and satisfaction, as well as price competitiveness and ultimately, on the bank’s profit & loss sheet.