Earlier this year, Fintech giant Finastra acquired Olfa Soft SA and its cutting edge SeamlessFX platform. The move has enabled Finastra to deliver a unique end-to-end real-time e-FX trading solution for banks’ treasury departments, covering distribution, position-keeping, post-trade and payments. We asked Olivier Virzi (V), Director of Product Management at Finastra (previously Co-Founder and COO at Olfa Soft), and Guillaume Spay (S), Solution Lead, Capital Markets at Finastra to tell us more about these developments and their plans for the future.
Why was Olfa Soft such a natural fit for Finastra?
V: Finastra has been a partner for many years. We’ve worked closely with the company to improve the quality of the service we provide to our clients. Back in July 2017, we formed a partnership which naturally led to the acquisition of Olfa Soft by Finastra in early 2018. SeamlessFX is the fastest institutional platform on the market today – providing low-latency aggregator, back-to-back or warehoused distribution, risk management and auto hedging of the bank’s risk.
We are integrating our eTrading solution with Finastra products our clients know well, such as Fusion Risk and Fusion Treasury. This allows us to offer banks a unique approach to managing their eFX business in real time, enabling them to respond faster to market changes within a single user interface, and streamlining a bank’s day-to-day work processes.
What key features and functionality of the SeamlessFX platform attracted Finastra to the offering?
S: The SeamlessFX micro-service offers all the standard functionalities a modern platform requires. It is built on the latest technology to offer low-latency trading. The interesting point here is that the solution aggregates both upstream and downstream channels. In short, where you usually need multiple applications to access to liquidity, risk management, and distribution to the bank’s corporate customers, you now have a single platform. Finastra takes care of the link to the liquidity providers and banks benefit from the flexibility delivered by open APIs.
Why has SeamlessFX proved to be so popular?
V: SeamlessFX is a cutting edge, end-to-end, real-time eFX trading solution for banks’ treasury departments. It covers distribution, execution, position-keeping, and straight-through Processing (STP). These are just some of the services SeamlessFX offers our clients. Due to co-location with major eFX liquidity providers, the solution’s implementation is quick, easy, and minimizes integration costs or delays. Our clients have access to the best available market rate for the transaction based on a predefined profile, guaranteeing optimum trading flexibility and best execution. As a fully-automated platform with a user-friendly interface, SeamlessFX allows banks to create, distribute and manage their liquidity as well as control their exposure 24 hours a day. Banks can protect themselves against market moves during non-working hours, and improve the quality of the treasurer’s activities.
What benefits will Finastra customers see from even tighter integration of the SeamlessFX platform with Fusion Treasury?
S: More than 700 banks worldwide trust Finastra solutions to run their daily treasury operations. As FX is the most common product, it was natural for Finastra to give them more with the SeamlessFX integration.Our clients can improve the service to their end-customer by streamlining the distribution process. As an example, they now benefit from full STP or 24/7 market access and order book management. At the same time, the integration helps banks to rationalize and bring homogeneity to risk management with real-time information, deep liquidity access, aggregated direct market access, smart order routing, and more. Finastra’s approach is unique and we are now the only vendor to provide such a depth of integration, both vertically and horizontally.
In what ways will becoming part of the Finastra family help widen the user base for SeamlessFX?
V: Finastra is the third largest Fintech in the world, and we believe that SeamlessFX adds even more value to the range of existing solutions. Being part of the Finastra family enables SeamlessFX to smoothly integrate with Finastra’s leading solutions to deliver even greater efficiency to our customers. This definitely allows Finastra capital markets clients to move their eFX trading business to the next level, with the fastest institutional platform on the market today.
What plans do you have for the future development of your FX trading solutions?
S: We have a defined roadmap. First, we intend to develop the platform geographically by expanding outside Europe and into other regions in the world: Asia, Middle-East and Africa, and the Americas. Secondly, we want to develop the number of asset classes available. In FX, we will complete our offer with FX options. Then we intend to move on to other asset classes, namely the cash and money markets, and securities.