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FlexTrade Systems, Inc., a global leader in multi-asset algorithmic execution management systems, today launched a new cross-currency spread program called FlexSpread for the equity markets in the Americas, Europe and Asia.
Available as a stand-alone application or through the award-winning FlexTRADER EMS, FlexSpread’s unique functionality handles cross-currency spreads, such as a US equity security/ETF and a sterling or euro-denominated equity. Traders can choose which currency to balance the spread. FlexSpread also facilitates currency hedging and can program a number of options to handle currency exposure, from adjusting on an equity fill-by-fill basis to adjusting when it reaches a certain amount or a fixed move has occurred in the currency. In addition, the new algorithm also manages cross-currency risk arbitrage deals.
According to Vijay Kedia, President and CEO of FlexTrade, offering a robust spectrum of trading functionality is always a priority. “Anything that gives traders the edge they need to get the trade done,” he said. “Cross-currency functionality in electronic trading is increasingly important in today’s global and interconnected markets. With FlexSpread, a trader can seamlessly execute trades among multiple securities in different currencies.”
Trading options available through FlexSpread include:- A pairs trading strategy where one sells/shorts one security and buys another in equal dollar amounts, or in a dollar ratio, subject to a price relationship.
- Risk arbitrage to trade an announced takeover deal, including cross currency deals.
- Cross currency equity pair trades where a trader executes a pair trade in two securities denominated in different currencies.
“FlexSpread has been designed with the traders in mind,” continued Kedia. “It offers an easy-to-use ticket design and accommodates a wide and customizable set of execution strategies.”
Algorithmic trading is the touchstone of FlexTRADER, a fully customizable EMS with pre-defined trading strategies and tactics for portfolio, sector and single stock trading. The platform provides organically developed pre-trade, real-time and post-trade analytics as well as risk and cost optimized portfolio trade scheduling (FlexPTS); advanced integrations with major OMSs; smart order routing; a sophisticated Dark Pool Router; a fully integrated high performance Complex Event Processing (CEP) engine; commission management; complete transaction and IOI quality management (FlexTQM); and a dynamic strategy matrix.
