The Aphelion eFX aggregator provides an integrated enterprise-wide solution for FX Trading aggregation, autohedge and algorithmic execution. It contains our unique price algorithm.
The Aphelion eFX aggregator provides an integrated enterprise-wide solution for FX Trading aggregation, auto hedge and algorithmic execution with real-time market views and internal crossing. The aggregator also contains Aphelion’s unique Best Executable Price (BEP) algorithm.
The BEP algorithm secures that the price you have in your aggregator is the same price you build your customer price on, e.g. every time you send or give a price to a customer the system knows exactly what the full amount hedging price will be. This is because, unlike what is a common setup on trading desk’s today, Aphelion eFX has the dealing system and aggregator in the same unit. Approximations that require safety mark ups become obsolete which enable you to have tighter prices on the multibank platforms. This in turn will give you higher volumes.
The Best Executable Price (BEP) algorithm in our aggregator does not only calculate the Volume-Weighted Average Price (VWAP) for a certain amount, but also calculates the best combination of VWAP prices and liquidity bands to execute that particular amount. The market price you see for a certain amount is the actual price you will get. This minimizes rejection rates, eliminates ghost liquidity and prevents double hitting of LP’s.
There are a few key distinguishers that differentiates Aphelion’s aggregator from competitors.
The Aphelion eFX aggregator connects directly to the proprietary system of each of your selected liquidity providers, i.e. the same system that is running behind the liquidity providers single bank portal. With the Aphelion eFX aggregator the liquidity providers will have the same flexibility to adjust their pricing as they have with someone using their single bank portal. I.e., the Aphelion eFX aggregator adapts to the technology of each individual liquidity provider while other aggregators on the market often have one pricing structure and then tell liquidity providers to connect and adapt to that technology. This technology, used by many banks today, is often very limited.
The Rules and Decision engine also supports the aggregation services of the platform. Pricing and hedging in an aggregator needs to be flexible enough so that the system can help you honor the agreements you make with the liquidity providers when negotiating pricing. As an example, if you agree with a liquidity provider to always give them full amount for a certain currency pair or when the deals spawn from certain kinds of customers, you must be able to create these kind of business rules in the system – with Aphelion eFX you can. Liquidity providers and ECN’s can be configured to be included or excluded, for example, per currency pair and/or per tenor. Sanity settings can be configured to do a cross validation between providers and exclude liquidity providers with suspiciously low update frequency or off-market prices.
The Aggregation module comes with GUI components to inspect and view the incoming liquidity in a variety of ways, both aggregated and from individual providers.