Low-latency connectivity and workflow services provider TransFICC has launched a new service which automates request for quote (RFQ) negotiation workflows for banks trading on dealer-to-client (D2C) venues.
Named TransACT (Automated Customer Trading), the service aims to combat difficulties associated with banks building automated negotiation systems to respond to customer RFQs, based on multiple RFQ negotiation workflows supported by D2C trading venues.
This process of automating these workflows is currently complex and time-consuming, as all state transactions need to be mapped, codified, tested and maintained.
TransACT claims to simplify the process and time to market for a bank to develop automated trading solutions for customers. The bank provides the customer price and TransACT is able to manage all other aspects of the RFQ negotiation.
The new service is available for use on MarketAxess, Tradeweb, Bloomberg and Trumid for US credit, with the service set to expand to other RFQ assets later this year.
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TransACT automatically negotiates RFQs on dealer instruction and is provided as a hosted service where venue connectivity and all negotiation workflows are automated.
The offering enables dealers to fully automate significant parts of their credit trading, alongside allowing trading desks to focus on larger tickets and risk management strategies, while automated RFQ negotiation provides clients with an improved service.
“Our auto-negotiation service provides the code, support, and security out of the box,” said Judd Gaddie, co-founder of TransFICC.
“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.”