Raiffeisen Bank International (RBI) has partnered with AxeTrading, the fixed income trading software company, and Integral, the FX technology provider, to deliver a new trading solution for bond trading clients by providing real-time streaming of FX prices into its bond trading workflow.
The collaboration has enabled RBI to provide faster and better pricing for its clients in local currency bonds while reducing its request for quote (RFQ) response time and increasing its hit ratios. By combining the capabilities of the AxeTrader Quoting and Execution Management System (QEMS) and Integral’s BankFX pricing engine, RBI reports it can significantly reduce its risk as a market maker by automatically hedging the currency exposure of the bond trade and reduce hedging costs on the back of FX execution.
The AxeTrader QEMS, which offers a single desktop that aggregates markets, data and trading workflows, automatically makes a Request for Stream (RFS) to the Integral BankFX pricing engine, which then provides real-time streaming prices via an application programming interface (API) directly into the RBI bond trader’s RFQ workflow to deliver more efficient and transparent pricing. When the bond trade is completed the corresponding FX transaction is automatically executed by RBI’s own FX trading desk.
RBI says the integration between fixed income and FX products fits perfectly into its focus of activities in Austria and across Central and Eastern Europe (CEE) as well as into RBI’s mission to transform continuous innovation into superior customer experience.
This solution is applicable to all traders in local currency bonds who need certainty, clarity and efficiency at the same time capturing as much of the spread with an automated workflow, making trading as profitable as possible and automatically hedging the associated FX risk.
Harald Müller, head of group capital markets trading & institutional sales at RBI remarks, “Our ability to respond fast to our clients’ requests with highly competitive pricing lies at the core of RBI’s market making philosophy. Therefore, closing the last technical gap between fixed income and FX products to provide combined pricing with maximum efficiency, has been a top priority for us..”
Ralf Henke, CEO of AxeTrading added, “The effective use of APIs and adoption of common standards drive our clients beyond the legacy technology providers with their limited ‘walled gardens’. Traders are able to benefit from their choice of connectivity to the broadest ecosystem of best-in-class trading and data applications to truly enhance and improve their trading”.
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