Tradition is one of the world’s largest interdealer brokers in over-the-counter financial and commodity related products. While the company covers multiple products, one of its main areas of focus is the FX spot market for which it created ParFX, a spot FX trading platform.
ParFX is a wholesale electronic trading platform designed to bring transparency and equality to global spot FX. The platform’s unique matching mechanism applies a randomized pause to all order elements: amendments, cancellations and confirmations. This firms liquidity by creating a genuinely level playing field for all participants regardless of location, technological sophistication or financial strength.
Tradition wanted a solution to ensure the consistency of FX trading, so that all customers were treated equally in the way orders were processed and fulfilled. The company had a similar need for its Trad-X product, which utilizes Tradition’s proprietary technology to provide an electronic multi-asset class trading platform for OTC derivatives. To accomplish these goals, the company sought a solution that could provide trading visibility and performance analytics of both its ParFX and Trad-X platforms.
"There is a growing requirement to deliver transparency and equality for all participants," said Yann L’Huillier, Group CIO of Tradition. "We wanted absolute assurance that our trading platforms offer our customers the very highest performance and efficiency of execution for all users."
Tradition looked at a number of alternatives, including building their own proprietary solution, and found that Corvil had all the capabilities to provide independent performance insights into its trading platforms and client orders. Tradition then worked with Corvil to implement the solution in a manner that would derive the greatest value to the business.
Once in place, Corvil delivered real-time visibility into key metrics for its Trad-X and ParFX platforms such as latency, fill-rate, order/cancel ratios and message statistics. In addition, multi-hop analysis of latency across their trading infrastructure enabled Tradition to proactively manage performance and troubleshoot threshold violations. Tradition’s operations team uses Corvil to monitor its trading platforms, the trading team uses it to answer questions from members about orders and trades, and the network department uses the solution to troubleshoot issues in real-time.
L’Huillier also keeps Corvil on his desktop to monitor customer KPIs so he can see how participants are trading in real time. He says he uses the solution as "a sort of on-the-go capacity planning tool." Additionally, Corvil helps Tradition normalize multiple currencies so the company can compare which generate the highest revenue and volumes.
"We’ve invested in Corvil at key points across our infrastructure to capture all of our client order flow so there’s a huge amount of data," said L’Huiller. "The Corvil APIs offer us programmatic access to the rich data so we can develop our own ability to data mine in the future."
Using Corvil, Tradition assembled a more complete monitoring system than any other solution. The success of Corvil with the Trad-X and ParFX platforms has not only allowed Tradition to make ongoing improvements to the systems, but also given them the confidence to extend the solution to other lines of the business in the future.
Compagnie Financière Tradition SA, one of the world’s largest interdealer brokers in over-the-counter financial and commodity related products. Represented in 28 countries, Compagnie Financière Tradition SA employs 2,400 people globally and its activities are overseen by global regulators including the FCA, SEC and CFTC. Compagnie Financière Tradition SA is listed on the Swiss stock exchange. For more information, please visit www.tradition.com.
Tradition and ParFX are registered trademarks of Compagnie Financière Tradition S.A.