Financial Technologies, the leading IPR enterprise is the "Technology Partner" in this initiative and has developed this exchange platform using its Straight Through Processing (STP) technology framework.
Through FXDirectâ¢, IBS Forex offers a state-of-art online matching and dealing platform for foreign exchange trading that supports real time anonymous deal matching system for Spot USD/INR trades between banks in the inter-bank forex market in India. FXDirectâ¢ also provides the inter-bank foreign exchange market a separate system for negotiated dealing between the banks on a one-to-one basis.
The most significant aspect of this new platform is that FXDirectâ¢ offers concurrent multi-pocket matching facility, a complex technology that has been successfully created and deployed by only a handful of companies globally. In addition to the real-time matching system, the platform also supports a chat module for negotiated dealing, real-time market depth display of best 5 orders in the market with VWAP (Volume Weighted Average Price) calculation, audit trail of orders and trades, flexible counter party definition, value date based limit monitoring, definable multi currency settlement instructions and flexible counter party definition.
FXDirectâ¢ allows deals in standard lot sizes of $1 million and multiples for spot USD/INR transactions. In addition, the system also provides a small window for deals in $0.25/0.50/0.75 million lots. The smaller lot size is expected to expand the current number of participants by providing a trading window to players who so far have not had access to the deal matching system. The service offers continuous feed of last traded prices and instant on-line deal confirmations along with summary of open orders, positions out of executed deals with the weighted average rates.
Said Mr. Ganesh Rao, CEO, IBS Forex (P) Ltd. "FXDirectâ¢ has been designed and developed to address the special needs of the Indian markets by professionals with in-depth understanding of Indian forex market place and technology leaders in mission-critical solutions. The value additions that have been included in the service are a direct reflection of our understanding of the market operations".
According to Mr. Jignesh Shah, Managing Director, Financial Technologies "With the launch of this Digital Financial Exchange, we have once again established our leadership in mission-critical technologies by introducing this real-time, exchange trading platform. We are proud to be part of the first Indian attempt at providing this technology for the highly sophisticated forex market".
FXDirectâ¢ is the outcome of cuttingâedge, Straight Through Processing technologies that the company has been continuously providing to the financial services industry, he added.
The entire technology platform is built around Microsoft / Intel Architecture framework that delivers cost efficiencies as well as industry standard-based, open interfaces. Moreover, the platform deployment has been carried out on high-end Compaq servers that are known for their consistent and reliable performance standards. The technology environment ensures the growth of the system as well as carrying out rapid changes in line with the market demands, at the shortest possible time.
This technology breakthrough has successfully established the power of Indian IPR and demonstrated that Indian IT companies can create globally competitive technologies and step into the exclusive world of global finished good economy.
Globally, the FX market stands at a staggering US $ trillions worth transaction value on a daily basis. In India, the overall size of the market currently stands at around US $ 1 billion worth FX trading per day, of which 60% happens online here, as well as on the global level. The market is set to explode many times over with the continued globalisation of the Indian economy and introduction of new participating banks and better costâefficiencies, through the launch of this new alternative trading system.
Existing banks (MNC / PSU and Private) as well as potential banks, which so far could not access the central liquidity pool, have evinced keen interest in this new technology, of which already 15 banks have joined who are amongst the largest volume contributors. IBS is expected to have a major share of the market.
The company has already received requisite approvals from the regulatory authorities to offer the service.