TransFICC has just launched a new eTrading service which combines a hosted desktop GUI with IRS venue and workflow integration, pricer API, server hosting and secure connectivity. We speak with Steve Toland and Judd Gaddie, co-Founders, about the new service and how TransFICC is evolving its service offering.
TransFICC started off by offering a standalone product that provides API connectivity. Why did you decide to launch your new eTrading service?
This was requested by two of our existing bank clients. Our ‘One API’ service was being used for API connectivity, but these banks also wanted a service to help traders improve the way they managed RFQ workflows. We spoke with other bank clients and prospects and realised that there was demand for this service, and launched with IRS due to the demand for Compression workflows.
eTrading uses existing connectivity provided by ‘One API’ and dedicated server hosting through our Data Centres. On top of this we have added a trader GUI with pop-up tickets, and a pricer API to work with internal pricing engines. It also includes a simulator for incoming RFQs to help our clients test their pricing engines.
What are the benefits?
eTrading increases efficiency and reduces costs associated with legacy systems. It provides global coverage and supports all IRS workflows, including outright, curve and compression trades. It is quick to install – in one case under two weeks to go live with dedicated hosting – and provides full security, disaster recovery and compliance as standard.
How long did it take to develop?
The core product took about 9 months, but it is an ongoing process as we add features for IRS and expand to other assets. One of our teams focused on the front end GUI, but we also had teams working on desktop application interoperability, a new rest API for pricer plug-in and single sign on standards support.
You are live with IRS? Will you be adding new asset classes?
Now that the service is live, we have been given a long list of assets that our clients want us to support. We expect to add credit trading in the summer.
How many clients do you have now?
We now have 14 clients, including our first buy-side. Two clients are using the eTrading service.
What other services do you offer and why have you developed them?
We now offer four services. In addition to eTrading we offer ‘One API’, which is our original service. It is a client library that enables firms to connect and trade on multiple FICC trading venues. We translate the various trading venue APIs into a single format, to allow for easy/single integration – so connecting to a new venue is just a simple configuration change. We also manage changes to APIs, when trading venues perform an upgrade. It’s a hosted service so hardware and venue connectivity issues are all managed by us. We are continually adding new venues and workflows functionality – at the end of last week we were connected to 82 venues, with many more in development.
We have also built our own data centre connectivity, to provide clients with dedicated server hosting. Originally, we partnered with infrastructure providers, but wanted this crucial service to be fully under our control. We have a physical presence at NY5, LD7, ML2, CH4 and FR2, offering the lowest latency, combined with private circuits for security, data storage and full disaster recovery. We also host in AWS US East and EU West.
We also offer technology for the EU Consolidated Tape, which is currently in pilot for Banks, Asset Managers and Data Providers to test the platform. Using key components from our ‘One API’ normalised post-trade feed and network infrastructure, our technology is expected to have a shorter development timeline and lower development costs than other Consolidated Tape initiatives, resulting in a cost-effective solution for the market – a key requirement for the EU.
