The Soft-FX Aggregator is a software solution for liquidity aggregation from various external and internal sources within a single view. It supports different combinations of currencies, order types and tiered pricing. This advanced solution makes it possible for organizations to manage their liquidity so that the numerous combinations for best execution and smart order routing could be set up according to specific rules defined by each firm. It is very important for organizations that want to build up their own liquidity network and fully.
Clearing accounts opened with liquidity providers are connected to the Aggregator via an API, and each account has a unique portal in the Aggregator. So, the current Market Depth data from each LP is combined with the current liquidity from your own company clients. This approach helps to considerably reduce the spread and increase liquidity by combining the volumes of offer from different LPs.
The Aggregator receives and processes information about demand and offer of different LPs and ensures clients` order execution at the best possible bid or offer price available on the market. All orders are routed directly to the best liquidity provider price. The Aggregator gives all traders equal and anonymous access to the inter-bank marketplace, optimizing marketability for all participants.
Some of the benefits of Soft-FX aggregator:
- full access to the Aggregator from special application Client AdminEye;
- maximum flexibility in customization. There are 100+ settings to meet any needs and requirements;
- the Aggregator Manager has the access to all clearing accounts opened with different LPs;
- there is a reporting system for all order types. The report provides detailed information about order execution speed and quality on each LP;
- all TP and Limit Orders are placed in the Depth of Market (DOM) that increase liquidity and reduce the difference between the best BID and ASK;
- a detailed recording of all order execution steps for each order;
- the Aggregator is implemented in C++ which leads to high performance.
The Feeder is a special service which receives quotes from different sources, processes them and forwards to other components of the system. During processing quotes go through special filters subsystem. The filters subsystem has been developed to serve the following purposes:
- improvement of trade execution. Filters sort bank quotes out, to avoid latency issues with the bank’s pricing and to eliminate the risk of delayed quotes;
- risk management and balancing. Filters automatically redirect traders` requests from one bank to another in the case of margin overload on the clearing account. Margin overload on the clearing account may occur in the situation when one bank provides better ASK than other banks do and another bank provides better BID. In this case all “buy” requests are forwarded to the first bank and all “sell” requests are sent to the second one. As far as the Feeder receives information about clearing accounts equity, the filters are easily eliminating situation with margin overload.
- protection. Filters remove incorrect banks quotes; delay and/or skip any large-scale price changes and spikes.
The Aggregator manager has an access to the filters configuration and can change filter settings according to his own requirements. Processed quotes are used by the Bridge for trade allocation.
The Bridge is the system component that allows for any transaction placed in the MT4, MT5 and any other platform to be executed via FIX API by an external liquidity provider.
As soon as information about transactions from trading platform is obtained, the Bridge sends a request to the liquidity providers to ensure full available volume execution at the best available price. After receiving confirmation of the operation completion, the Bridge sends the information to the trading Server via API. Integrated multi -level protection system prevents from unexpected aberrant behavior of any connected LP or MT4/MT5 server. Flexible notification system informs through e-mail or sms about any system failure.
The AdminEye is a unique application to manage the Aggregator and monitor its functionality. The AdminEye application allows monitoring the availability of the server resources, diagnosing the system components, managing liquidity channels and trading terms.
The AdminEye provides you with information about equity, free margin, margin level on every clearing account opened with connected Liquidity Provider so that you could easily manage your risks. With the AdminEye application you are able to get detailed recording of all order execution steps for each single order. For risk management and work optimization with a liquidity provider the reporting system is essential. Reports generated by the program provide you with full information on the execution speed and quality, bank executed quantity, price deviation; you may also generate different types of reports from МТ4 server and all these can be done from the unique aggregator management system – AdminEye. Flexible configuration system enables you to tune the Bridge and the Feeder according to your individual specific requirements.