Viral please can you tell us a little about the history of TradAir and its current operational footprint around the world.
TradAir was founded in 2010 and is a leading provider of front office optimization solutions offering Banks, Brokers and Institutional Market Participants the ability to maximize revenue and reduce cost while reaching a global client base. TradAir offers our clients a world class open solution, that not only consists of the latest in technology, but optimizes order flow, execution and customer reach. The TradAir solution provides clients increased FX scope and flexibility from creating their own unique price to executing using the most sophisticated methods.
What core services and solutions does the company focus on delivering?
The company is focused on providing an end to end solution for FX trading including market making technology, sophisticated trading and white label functionality all underlined by actionable data analysis. The solutions we provide include:
- Create your own price - Our unique pricing Engine solution goes beyond traditional solutions, offering flexibility and dynamic algorithms. This allows the bank to lower risk while competing in the available market, managing multiple price streams, and algorithmically alter price creation and hedging in real time.
- Optimal Trading - TradAir’s robust trading solution, provides banks with an optimal trading solution both for internal desks and for the bank’s direct clients. Be-spoke connection to all Tier1 banks and most non-bank providers as well as ECNs guarantee the tightest level of pricing. TradAir’s Smart order router ensures an optimized execution across all liquidity types and is monitored in real time using advanced financial analytics.
- White label - Our state of the art white label solution supports API trading and rich GUI and mobile trading across all product types. The HTML5 based GUI can be personalized with a unique look and feel for every client type to ensure the highest degrees of end client ease of trading and satisfaction.
- Analytics - Unlock the value embedded in trading data. Going beyond simple TCA or MIS. Gain deep insight into pricing characteristics of liquidity providers and trading behavior of clients across all venues. Leveraging the cloud and BigData, the analytic engine is super-fast. Providing real-time analysis of all client flows across all venues, internal flows, entire order-books, fill rates, latency stats, Last-Look times, and liquidity analysis. In addition in recent years we have adjusted the analytical suite to provide clear audit data for compliance and regulatory requirements. Results are presented in an intuitive pre-build suite of customizable dashboards.
What are your target markets and what type of clients are you servicing?
Our target market are regional banks and both institutional and retails brokers. We see the markets continuing to evolve. Liquidity fragmentation, Regulations and the rise of Crypto currencies are a few of the major trends driving change in both banks and brokers and requiring technology providers to quickly adapt. It is fortunate that technology has evolved even faster, thus with the right knowledge and experience it is easy to adapt the solution to meet the market challenges and even innovate beyond current requirements. At TradAir we are focusing on expanding our offering, adding innovative new features and data analytics while taking a no compromise approach to performance and scalability
Since joining the firm what has been your main focus areas?
Our clients and prospects are looking for a technology that can provide a stable, high performance trading environment while capable of innovating and providing unique and impactful features in a timely manner. TradAir is focusing to provide our clients with a competitive advantage with higher yield, while addressing regulatory requirements. We continuously talk to our clients, evaluate the market and adjust our roadmap. Crypto currencies is one example of such an area. We started following this space several years ago, but with the growth of client demand for an institutional grade trading solution we have shifted focus to address their needs.
TradAir services are modular, what advantages does this have for clients?
Our clients look for either an end to end solution or a best of breed solution. Being modular, enables us to address both types of clients. If a client is looking for a specific solution such as a front end GUI, or a pricing engine we can deliver that without requiring them to take the full suite of products. The modular technology also enables faster time to market and higher quality as changes are contained in their respective modules.
Fragmentation of liquidity across multiple trading platforms is a challenge in FX. How does TradAir help participants eliminate this problem?
Market fragmentation has been a major issue in the FX market for the past several years. While this direction is positive in nature as it has the effect of leveling the FX playing field, it has also created a number of challenges to sell-side firms. If in the past a firm would normally have 5-10 liquidity connections the numbers have tripled to anywhere between 20-50 connections per firm. This increase in scale as well as the variety of connections including the introduction of the now popular full amount type feeds have further augmented the challenges faced. Sell Side firms need to be adept supporting these types of feeds, handling the throughput created specifically around market events and managing the requirements for new functionality to optimize the execution against this new liquidity map.
We provide connectivity to both the banks, alternative providers and ECNs and ensure that the system can handle peak throughput. In addition for TradAir this challenge was an opportunity to expand our liquidity network and address client requests for real time rules to optimize the quality of execution and automatically select between the different types of feed for improved execution.
Latency is another key issue for both pricing and execution in FX. How does your technology address this whilst ensuring the highest availability of services at all times?
The market is continuously requiring lower latency in the processing of market quotes, orders and trades. This challenge is augmented due to liquidity fragmentation causing a large increase in the number of LPs and as a direct result the number of quotes requested by our clients. Our architecture allows us to convert many independent price feeds into a small set of client specific price feeds. We are able to convert low latency feeds, high updating price feeds into a form that clients can trade on without having to be high frequency themselves. This allows them to achieve good execution without the necessity to be technologists themselves. TradAir deals with market volatility in way that doesn’t expose the client to rates that cannot be traded on as well as providing execution tools that achieve very high fill rates.
All of your UI’s are in HTML5. Why is that?
TradAir was a pioneer of HTML5 trading since 2011. This was our technology of choice at the inception of the company. HTML5 has since been widely adopted as it presents many advantages to our clients. A bank can deploy their solution to hundreds and thousands of clients instantaneously with zero costs and the development of the GUI is flexible and quick . Today we have adopted newer technologies such as React – to continuously innovate our GUI and ensure optimal performance to the end clients.
Demand for better data management solutions and real-time analytics has increased recently across the FX market. In what ways is this playing into your own product offering, business model and use of Google BigQuery cloud based technology?
We are fortunate as a software provider that the growth in FX volume has been highly correlated to the evolution in Big Data technology. While in the past storage and querying of data was expensive, now multiple technological solutions are available and the ability to utilize the Cloud brings down the costs substantially. Technology has also allowed us at TradAir to move to close to real time analysis of the data providing clear actionable information at the time it matters. The majority of volume data that is stored are the ticks of every liquidity provider, order, trade and system data. We then create a cross referenced matrix of Tics correlated with orders, trades and system matrices such as latency data, P&L to be able to extract meaningful insights.
In what ways are you currently looking to further develop your trading analytics engine and creating new toolsets and applications for it in FX?
We believe that a key differentiator for our clients is their ability to have a real-time view into their data and analytics to take action at the time it matters. We are continuously adding analytics for Execution analysis, Liquidity analysis and client trading analysis.
Data analytics has recently been driven by regulations such as MiFID II and we are happy to have had in place the required toolset to address these requirements and provide compliance teams the necessary tools to address their regulatory challenges.
e-Forex has also been reporting on the rapid growth of mobile trading across both retail and Institutional FX markets. Do you think Mobile FX has finally reached critical mass and if so, how have you positioned TradAir to take advantage of it?
Mobile FX has definitely seen major growth over the past few years. We see the adoption of our mobile technology primarily in Asia, but it is growing in Latin America and additional regions. While the adoption is growing it is still far from critical mass and there are still many organizations which prohibit the user of mobile trading.
Looking ahead where will you be focusing your efforts over the next year?
We will be looking to expand and strengthen our global operations while continuing to develop new value added products and services to take the firm to the next level. We believe there is a growing need in the crypto space for institutional grade solutions and this is an area we have been upgrading our offering in. Also Data analytics is a key area for growth for us as our clients have been extremely pleased with our recent developments and are a looking for us to continue adding more analysis capabilities.