Martin Haines, CEO, Asia, at KX explains how KX Insights – a cloud platform for real-time analytics – can add scale and efficiency to real-time analytics programs for customers in Asia to adapt to different business environments and combat volatility.
Global FX the trading environment has undergone continuous evolution over the past two decades, with the demand for greater visibility into trade execution, the drive for better quality liquidity and changes in the regulatory environment leading to the adoption of new technologies. The promise of greater operational and cost efficiency through streamlined processes, end-to-end integrated workflows, and the consolidation of pricing and risk management through trading platforms has led many organizations down the path of electronicization.
The Covid-19 pandemic has revealed the role that robust and scalable technology solutions play in reducing the negative impact on business and ensuring continuity with trading floors that have turned to remote operations overnight. There is probably no clearer example of the importance of technology in the sector than how the global financial services sector has adapted to the massive changes being forced upon it. This experience further pushed organizations to digitally transform and rethink their business through data-driven innovation.
This “new normal” of increased automation, better access to data and the continued digitization of platforms and systems is enabling better decision-making and the creation of higher value services across the sector as organizations find they have the data, insights and time to innovate. .
Characterized by highly fragmented markets – each with its own idiosyncrasies – Asia has traditionally lagged behind its Western counterparts in electronics. FX business arena. However, the pace of digitization has certainly accelerated in recent years as we see corporate treasury and buy-side companies in Asia actively seek to streamline business operations through automation and fully integrated workflow solutions to achieve operational efficiencies.
The move to electronic trading has helped simplify the trade execution process, allowing market participants to not only better assess competitiveness and consistency of liquidity during volatile markets, but also free up valuable resources to focus on differentiating their services to increase profitability. This naturally leads to an efficient cycle of further electronic commerce and automation across multiple products.
As such, banks in Asia are also under pressure to keep up with client demands and related technological advances to secure their position inFX space in the face of global competition. Clients inevitably seek consistent, quality liquidity in volatile times, and robust technology is key for banks to achieve this. This is especially so as transparency improves with both buy-side and sell-side leverage technology and the power of data to reveal insights into liquidity quality, rejection costs and market impact and tailor your trade execution process to generate positive results . .
Over the past year, we have been appointed by two major banks in the region to help them transform FX technological strategies. We work closely with them to implement solutions that will enable them to serve clients while effectively managing risks through an electronic channel. Our clients are watching KX as a long-term partner to provide future-proof trading solutions that include real-time analytics throughout the trade lifecycle as well as algorithmic trading capabilities.
KXThe company’s technology is widely used on the buy and sell side – especially in FXwhere it supports institutions in designing, developing, implementing and supporting a wide range of mission-critical data and business systems across front-, middle- and back-office operations. KX also offers a comprehensive FX trading platform (KX Flow), business strategy and risk management system (KX Algo), pricing and optimization statistics (KX FX Analytics) and a holistic 360 package for monitoring and investigating business fraud (KX Surveillance).
KX has long understood and championed the transformative role technology can play in capital markets. Digitization and e-commerce have changed the way people and institutions do business and the types of traders that operate now compared to 10 years ago. Central to this transformation was the ability to better capture, manage and analyze the vast amount of data being generated and then act on that knowledge in real time.
One area where real-time decision making has a significant impact is pre-trading. Until recently, organizations focused on post-trade analysis mainly due to the problems of generating pre-trade analysis. The amount of data that needed to be captured and analyzed and the computing power required to do so was prohibitive given the time sensitivity. When implementing a complete analytics solution for buy-side clients in the region, KX the platform has proven its ability to overcome these challenges, allowing traders to not only increase the speed and efficiency of execution, but also improve modeling across multiple asset classes simultaneously – a significant difference between KX and its competitors.
The future of the financial services and capital markets sector is one of greater digitization and automation – some by choice, some not. Better use of data will enable organizations to meet the challenges and maximize the opportunities that come their way.
KX has been on the cutting edge of data-driven innovation in capital markets for over 20 years and continues to evolve its platform to help clients keep pace with this pace of change. Launched earlier this year, KX Insights is a real-time cloud analytics platform that offers all the benefits KXworld-leading streaming analytics capabilities with the efficiency and flexibility of a cloud computing architecture. Fully deployable in the cloud, hybrid or even privately on-premise, KX Insights enables customers in Asia to add scale and efficiency to their real-time analytics programs, meaning they can quickly adapt to different business environments, no matter how volatile and unpredictable they may be.
To learn more about KX The Streaming Analytics platform and how it could help your business in Asia, contact:
Martin Haines, Managing Director, Asia