Please tell us a little about the various market participants who make up the TradeNeXus ecosystem?
TradeNeXus is an award-winning post-trade FX and money markets platform for asset managers. Our ecosystem consists of more than 400 global asset managers across 190,000 funds interacting with over 70 banking groups and 800 custodians. Our ecosystem also integrates important financial market infrastructure providers such as SWIFT, CLS and LCH.
Why did you decide to build this community?
The community is built to drive efficiencies and add value across clients’ workflows in post-trade FX. Post-trade FX remains a fragmented market with many bespoke and legacy processes, and our core product brings together clients and their counterparts to drive consistency, STP and minimise costs. We are focussed on innovation, and continue to invest in new features and ideas as the growing need for automation, data-driven decision making and simplicity continues to be key drivers in post-trade FX.
We have been at the heart of FX post-trade for over 20 years, and we continue to see growth in volumes and clients, which is testament to how the industry values our product.
What are the core services and functionality that TradeNeXus offers?
TradeNeXus’ core functionality is trade matching, confirmation and settlement messaging for foreign exchange and money market transactions. The platform offers consolidated multi-counterparty view of post-trade activities, including exception-based confirmation management workflows. SWIFT messaging is a core component of TradeNeXus and the platform automatically enriches custodial SWIFT messages with broker SSIs.
TradeNeXus settlement workflow supports Gross, Net and CLSSettlement which is facilitated through user tailored rules to determine settlement method. Net settlement figures are also agreed on the platform between our clients. Our platform provides customisability to meet unique client needs, whilst maintaining a consistent workflow for both asset managers and banks.
In what ways is the shifting regulatory environment continuing to put increased pressure on buyside firms, especially asset managers, to seek more effective post-trade workflow solutions?
Following the T+1 securities settlement changes in US/Canada, firms had to complete a front-to-back review of their processes and workflows to ensure their workflows are efficient to handle the compressed timeframe. This change impacted both front office and post-trade teams, and the need for transparency and data quality is becoming ever more important to identify and resolve settlement issue early on. This has led to the growing demand for advanced data analytics on both client and counterparties operational metrics provided by the platform, as well as adoption of products such as CLSTradeMonitor that provide real-time transparency to the settlement process.
As data become ever more important to our clients, TradeNeXus has data at the core of our strategy, and recently implemented a datahub which encompasses both trading and post-trade data. This allows us to look at datasets across our entire ecosystem, and launch more data-driven analytics and products to help our clients navigate both their day-to-day operations and strategic goals.
This includes our upcoming data analytics for clients that allow them to assess their broker performance, and integration into State Street LINK platform, which is an interoperable platform interface which has integration to FX Connect next to TradeNeXus to aid in quicker dispute resolution and greater transparency of any operational hold-ups.
You have worked hard to make your solutions seamless for clients. What advantages does that have, particularly for firms that want to adopt your add-on services?
TradeNeXus’ simplicity is its strength. Clients who utilize TradeNeXus today can opt into our add-on services modularly and continue to benefit from a consolidated dashboard and workflow to manage all their post-trade activity. This includes leverage existing account setups, integration workflows, and rules engine which will minimize the uplift required for clients to adopt. This speeds up time-to-market and reduces training and resources required.
Please give us some examples of the collaborative work you have recently been undertaking with other organisations which has helped you to expand TradeNeXus beyond a matching and messaging platform
Ahead of US and Canada T+1, TradeNeXus collaborated with State Street’s StreetFX to deliver a partnership solution with DTCC. By connecting to DTCC Institutional Trade Processing (DTCC-ITP) and its central trade matching platform, CTM®, StreetFX can automatically execute the required FX trade necessary to fund the purchase/sale of related securities transaction. Once the FX trades are executed, they will flow through to TradeNeXus for straight-through-processing for post-trade workflows, serving as an automated solution around T+1 considerations. This initiative was recognised in the FX Markets Asia Award 2024 as TradeNeXus and StreetFX was awarded “Best bank for post-trade services”.
In recent years, TradeNeXus has also collaborated with market partners to launch new joint offering including CLSTradeMonitor integration, LCH clearing connectivity workflows, and trade optimisation workflows with Capitolis, all accessible within the TradeNeXus dashboard.
What are your plans for growing your portfolio of post trade FX services and solutions this year into next?
Building on the work done this year on data, TradeNeXus will be introducing broker KPIs towards the end of this year and will further enhance metrics in aiding clients in optimizing their workflows and extend interoperability in our LINK platform, which brings together research, trading, analytics, post-trade together in one interface.
Staying with automation, we will be working with our clients to integrate to our netting automation feature. Users will benefit from a quicker process for agreeing settlement netting.
In the second half of this year, TradeNeXus will also be looking to launch a new settlement repository to provide buy-side asset managers to opportunity to automate their SSI exchange with counterparties.
How much more innovation can we expect to see from TradeNeXus in the future to ensure it continues to be at the centre of the post-trade ecosystem?
There continues to be significant change on the post-trade horizon whether it be regulatory driven initiatives or new technology. TradeNeXus will continue to partner with our clients and leverage our ecosystem of participants to invest in new features that can add value to the post-trade space. In the drive for greater automation and market structure changes like T+1, there are significant opportunities to re-look at existing FX processes and improve on them. TradeNeXus constantly engages with its clients and partners to improve its service.