Market Maker Cockpit
A professional and flexible pricing engine is key for your price controlling.
As a liquidity provider, you need to be in control of your pricing, your internalisation levels, your management of risk and, most importantly, of your profitability. You want to be able to define your price based on customer relationships and current risk positions at different market conditions and all this on a currency pair level. As core part of the Auto Dealing Suite – 360T’s central Sales Management Tool for price distribution to clients – we operate an advanced, dynamic pricing engine solution for you to manage and control your individual needs. A professional and flexible pricing engine is key to this and allows you to run a profitable dealing business.
How can you benefit from it?
Regardless of whether you are a bank providing dealing rates to your clients or a corporate with the intention to centralize FX flow from your subsidiaries, the MMC will help you to manage and control prices and positions.
The Market Maker Cockpit includes a number of functionalities for you:
- Overview: provides lists of defined currency pairs, views for inbound and outbound prices as well as blotters to show your position, orders, and deals.
- Pricing Controller: enables the creation of different core prices for each defined currency pair and adjustments with spreads and/or skewing.
- Risk Management: defines risk parameters for each currency pair and position as well as management rules based on set triggers and alerts.
- Reference Price Finding: enables the selection of price provider(s) and fully customizable pricing tiers, etc.
- Cross Rate Management: creates your own cross rates and manages the price and risk of the cross rate legs.
The MMC offers sophisticated tools through various strategies and parameters to derive a trusted reference price or inbound price out of a pool of available liquidity providers. With respect to outbound pricing, rules can be set to automatically skew prices in a direction that will make your open position attractive to clients. For pegged currencies, the MMC also offers an option to configure fixed prices for various pricing tiers.
Automated risk management is an integrated part of the MMC. You can monitor positions and P/L in real-time via the MMC GUI position blotter. The MMC caters a wide variety of risk management options, three of which are:
- Back-to-Back: The safest and generally risk free way to manage client orders by hedging.
- Flow Hedging: A solution to manage client orders without rejections.
- Managed Positions: The sophisticated option with fully automated risk management.
Automated Flow Management
Traditionally managing FX spot risk requires traders to continuously monitor currency positions and P/L. The integrated risk management rules engine allows you to setup an arbitrary number of rules that automatically adjust prices, positions, and hedging. Rules can also be used to automatically adjust your open positions, e.g. by reducing them to a certain size or closing the position, and these rules can be triggered on various conditions such as position size, open, or total P/L, and more.
Cross Rate Management
Use the MMC to construct and manage your own cross rates for FX currency pairs and precious metals. Cross rate client trades will be split into two legs, which allows you to manage risk for each leg separately. A commonly used setup is to manage one leg (e.g. the one containing your home currency) and hedge the second leg back-to-back (to avoid taking risk in the non-home currency).