TransFICC, a provider of low-latency connectivity and workflow services for Fixed Income and Derivatives Markets, has launched TransACT, a new service which automates Request for Quote (RFQ) negotiation workflows for banks trading on Dealer-to-Client (D2C) venues.
The service is in production at a global dealer.
“Our auto-negotiation service provides the code, support, and security out of the box. The only bank requirement is to have a Pricer, meaning the service can quickly go live. What used to take months or years for a bank to deploy has been reduced to a few weeks,” said Judd Gaddie, Co-Founder of TransFICC.
D2C trading venues support multiple RFQ negotiation workflows, and all are different, making it difficult for banks to build automated negotiation systems to respond to customer RFQs.
It is a complex and time-consuming process to automate these workflows, as all state transitions need to be mapped, codified, tested, and maintained.
TransACT (Automated Customer Trading) simplifies the process and reduces the time to market for a bank to develop automated trading solutions for customers.
The bank provides the customer price and TransACT manages all other aspects of the RFQ negotiation.
TransFICC’s new service is available for immediate use on MarketAxess, Tradeweb, Bloomberg and TruMid for US Credit, with the service expanding to other RFQ assets, including IRS, later this year.
The service automatically negotiates RFQs on dealer instruction. It is provided as a hosted service where venue connectivity and all negotiation workflows are automated. All that is required to integrate with TransACT is the ability for dealers to provide a price stream and an execute/reject instruction for a given RFQ. This is done using a simple API accessible via websocket.
TransACT enables dealers to fully automate significant parts of their Credit trading quickly and easily. The service allows trading desks to focus on larger tickets and risk management strategies, while automated RFQ negotiation provides clients with an improved and faster service.
TransFICC provides trading technology for Fixed Income, resolving the issue of market fragmentation and delivering workflow efficiencies to banks and asset managers globally. It provides connectivity to multiple trading venues while supporting a variety of workflows across asset classes such as Rates and Credit Bonds, Repos, Mortgage Backed Securities and Interest Rate Swaps.
