Broker-dealer trading technology provider oneZero Financial Systems has launched a price creation tool for the buy-side that uses broker data constructs and algorithms.
Known as Algorithmic Pricing Module, the tool allows brokers to formulate tailored pricing for clients using proprietary algorithms specific to them and constructed using their own data, including market data and market risk positions.
oneZero said the new price creation tool will allow institutional investors to have a bespoke price, allowing them to tune their pricing function by taking parameters through a combination of settings, including API inputs and exposed user-defined settings.
The algorithmic Pricing Module expands oneZero’s institutional hub and its coding interface feeds directly into the firm’s hub enabling clients to insert their own native code.
“Clients are already developing applications previously not thought possible, including the construction of new and innovative derivative product offerings whose prices can be perfectly calibrated for the intended end-user,” said Andrew Ralich, chief executive officer at oneZero.
“For institutional clients, enabling protection of their unique ‘secret sauce’ and providing the ability for the customer to make real-time changes to their pricing strategy to be responsive to market dynamics was something oneZero was keen to offer.”
There have been several initiatives launched in the last few weeks as the demand for tailored pricing by institutional investors continues to accelerate.
Most recently, CME Group’s FX trading platform, EBS, teamed up with TORA’s order and execution management system to provide multi-asset hedge funds and buy-side firms with pricing in spot FX and FX derivatives.