Abu Dhabi broker ADS Securities has announced this morning that it has partnered with trading solutions firm Corvil to provide monitoring for their new Orex FX platform (see full press release below). The solution by Corvil will generate real time analysis and monitoring of FX order and allow ADS to meet demands of its HFT clients. For more depth on the deal and to learn more about Corvil’s solutions and what is the role of trade monitoring in the FX sector, Forex Magnates got in touch with Donal O’Sullivan, VP Product Management for more information.
FM: ADS has selected to partner with Corvil for monitoring of their new FX Trading Platform . What are the typical monitoring needs from brokers?
Donal O'Sullivan, VP Product Management, Corvil
Brokers need greater transparency in terms of proving the speed and reliability of trading systems to clients, and that they are ensuring the best execution possible for client orders. There is a great emphasis on the need to monitor and alert on trading system behavior in real-time. This needs to include business relevant metrics such as fill rates, trade volumes, order ratios etc. (FM note: fill rates were one of the areas of importance that was highlighted quite often during FM’s Liquidity Panel in the London Summit)
FM: How does Corvil provide a solution to these needs?
To provide this transparency system elements cannot be monitored in isolation. Corvil provides total monitoring of trading system performance this multi-layered analysis encompasses:
§ Network connectivity out to clients and market centers – monitored for performance issues such as congestion, which causes delays, capacity requirements in light of issues such as microbursts
§ Trading Transaction analysis – Corvil provide a complete record of order-flow activity, providing Brokers with the data needed to respond to any client performance issue. We capture everything and our data is searchable by order ID, by trader ID, or by any other application message field. Our order lifecycle analysis provides a complete history of transactions for any order
§ Business Analytics – Corvil provides an instant picture of the health and status of trading messages and transactions. The metrics are available to Brokers through a web based GUI or extensible via Corvil’s SDK. Metrics include fill-rates by market and order type, order life cycle tracking, cancel-replace ratios, order and trade volumes.
FM: What are areas that Corvil believes brokers should pay more attention too?
Clients are demanding greater transparency and no longer trust reports that do not agree with their experience. To get a true picture of system performance Brokers need to look at total system performance rather than siloed views of system activity.
FM: What is the advantage for the end-user traders when brokers are more diligent in applying trade monitoring?
Using an independent monitoring tool to simultaneously monitor the full life cycle of trade orders, as well as operational performance, benefits clients by providing stability and transparency around their trading experience. With real-time alerting often Brokers will be to be able to alert on and resolve potential performance issues before they become a problem for the end user.
FM: On ADS’s side, how is this platform an upgrade for clients from their existing solution?
OREX provides new functionality and trading options for clients, complementing the other platforms and API options available, and is part of ADS Securities continued investment in technology to ensure that clients have bespoke, market leading solutions. The experienced institutional team wanted to be able to offer their clients tailored solutions, for example algorithmic trading functionalities or the ability to lower transactions costs by entering into only one average rate ticket, regardless of the number of trades done in the background to place large market orders. They also wanted to be able to offer access to a number of different Liquidity pools that have been developed to match client profiles. Again, for example, through OREX it is now possible to offer pure buy-side liquidity to certain institutional clients, which provides unique skewing and hence further narrows the available spread. Developing OREX has been about provide a full range of trading options, which can be tailored to the specific requirements of institutional clients.
FM: HFT has been a hot topic of late. To handle this lucrative volume but maintain that the order flow isn’t predatory, what are the requests that Corvil receives from LPs and brokers?
HFT and its relationship to market structure is very complex there are broad arguments for its positive and negative influence. In general, as being driven by regulatory requirements, we see that the rate of monitoring and transparency is considered the best guard against predatory activities.
Corvil Selected by ADS Securities for Total Monitoring of New FX Platform Corvil Expands its Client Portfolio into Middle East Singapore, Tokyo, New York, London 22nd January - Corvil, a provider of monitoring and management solutions for high-performance trading, has been selected by Abu Dhabi based ADS Securities (ADSS) to monitor their new FX platform. ADS Securities provides sophisticated forex, bullion and commodities trading solutions to institutional and professional investors. The CorvilNet solution will allow real-time monitoring and greater transparency of their trading infrastructure. Andrew Rossiter, ADS Securities’ Chief Technology Officer, commented, “We have built a new very high-throughput trading platform, which we are launching in early 2013. Our clients demand consistent, low-latency, pricing and order processing and implementing Corvil will give us the ability to monitor our systems and networks in real-time, providing nanosecond latency timings. The complexity and speed of our new platform demands that we use the very best monitoring products. Corvil is used by several major global exchanges and tier 1 investment banks, all of which have the same quality and performance requirements as ADS Securities. Using Corvil demonstrates our commitment to delivering a new ultra-high performance brokerage system.” Corvil will deliver measurements for market data, order flow, quote-to-order latency and network measurements to ensure the highest standards of service for ADS Securities and their clients. The Latency Navigator and Trade Lens will allow ADSS to analyse these measurements via customizable business level dashboards and to report trading activity in business defined categories including per session, client, venue and gateway “It is a great testament to the Corvil brand and expertise that we have been selected by ADS Securities, one of the fastest growing brokerages in the Middle East. We look forward to working closely with them,” said Donal Byrne, CEO Corvil. “The expansion of our footprint into the middle-east further signals the broad adoption and requirement to monitor the health and assure the performance of modern trading platforms.” About Corvil Corvil is a provider of monitoring and management solutions for high-performance trading. The company was founded in 2000 and operates from New York, London, Singapore, Tokyo and Dublin. Customers use Corvil for monitoring, troubleshooting and reporting of performance for their trading applications and networks. Corvil Solutions are used by the world’s leading exchanges, brokers, trading firms and their service providers. For more information on Corvil, please visit www.corvil.com About ADS Securities Abu Dhabi-based ADS Securities is a forex, bullion and commodities trading firm, which brings significant new opportunities to participants in the global and regional forex, commodities, futures and options markets. ADS Securities offers a comprehensive set of on and off-line services and tools designed to help institutional, professional and high-net-worth participants trade with high efficiency, speed and simplicity. The company is led by a multi-national management team with a wide range of international experience, having worked some of the world’s leading securities trading companies and banks. The company started operations in March 2011 and offers a deep range of market-leading pricing on bid/offer spreads across all major currency pairs and in all trade sizes. ADS Securities is building a large network of liquidity providers (LPs), including tier 1 and 2 banks and financial institutions, Electronic Communications Networks (ECNs), FX and commodity exchanges and brokers. The company’s location in Abu Dhabi allows it to provide extended support to clients in the East and West beyond normal trading hours and days. ADS Securities provides clients 24/ 6 trade support through a team of experienced sales traders and chief dealer who work proactively to provide the timely advice and assistance necessary for successful trade execution. A diligent in-house operations and risk teams constantly monitor and manage the post-trade cycle to reduce risk to a minimum. To trade forex, precious metals, commodities, futures, options and more visit www.ads-securities.com. ADS Securities is part of the ADS Holding group and is regulated and licensed by the UAE Central Bank, and was established with initial capital of US$400 million.
