LumeFX solves many of the challenges facing FX ECNs. In what ways does the new LumeMarkets platform represent the next stage of product development for Lucera and what important features and functionality does it provide?
LumeMarkets is the natural evolution of our product. It uses the same underlying core architecture providing a deterministic, low latency and highly configurable system for accessing and aggregating disparate markets across multiple assets - FX, Rates, Futures and Credit. The LumeMarkets platform is based on the high performance, low latency system which is already known in the market from our LumeFX platform. The difference is that LumeMarkets provides a single, normalized API for multiple markets: FX, Rates, Futures and Credit.
What are the key benefits of LumeMarkets?
The core pillars of our system have always been deterministic performance, granular configurability in a modular, quickly deployed architecture. LumeMarkets incorporates and expands on these core items. We’ve made the system simpler and added additional automated telemetry throughout.
We’ve also rolled out more functionality including additional configurable matching rules, enhanced TCA, trading controls and along with our web-based management console we’ve now exposed all of this via an API for optimal flexibility and control. Our clients can use as little or as much of this system as they need to build and run their own platforms.
Our goal is to reduce the time to market and make it for clients easy and quick to provide or take liquidity on new platforms. Along with a normalized API it’s a modular system that provides market data, market access, smart aggregation, smart-order routing, credit and trading controls.
The system is highly configurable - it has a CLOB, can provide private rooms, supports last look, RFQ, reference price matching, dark pools, spreading, priority-based matching, detailed TCA and reporting capabilities and a lot more features. The beauty of this all is that most of this is configurable in real-time, via API and as well via our proprietary HTML5 UI. Clients can use as little or as much of this ecosystem as they need and create in a way their own platform.
In what ways do you expect LumeMarkets will help Lucera to widen your client coverage and attract new ones?
We’re lucky to have a group of wonderful clients in the FX space and as we push out our system into these other asset classes, we expect to see similar uptake and are already seeing interest from Tier1 Banks and similar client type. Our goal is always to reduce the friction of trading with new counterparties or venues. We see the increasing fragmentation, electronification and associated explosion of data in these markets as something we can help our clients to deal with – from Credit to FX Lucera and LumeMarkets has a role to play providing best in class technology to aggregate, analyze and trade globally across multiple asset classes on low latency co-located infrastructure. LumeMarkets reduces the cost of implementing and maintaining multiple different API’s to platforms.
With this approach and together with expanding the support of additional asset classes, we already see significant interest from banks, brokers, proprietary trading firms and hedge funds. Especially for Credit, we see an interest from the Fixed Income space, whereby LumeMarkets can present them the most comprehensive tool to visualize data, analyze markets and trade with best execution context.
Besides Lucera has recently expanded their global footprint and added Equinix FR2 data center. We’re now able to offer LumeMarkets - in combination with any of our other services - for any financial institution that already have a presence or want to be there locally.
How do clients access LumeMarkets and what integration issues are involved?
Built atop Lucera’s globally deployed Connect and Compute platforms, LumeMarkets is a fully hosted and managed service. With our large and ever-growing network of integrated venues and counterparties onboarding is quick and easy – reducing capital and operational expenditure and lowering time to market so our clients can focus on what matters to them.