TradingScreen CEO in FX Week: Why Multi-Asset Platforms are Better for Forex

Philippe BuhannicTradingScreen CEO Philippe Buhannic is the voice of multi-asset systems in a great article by Saima Farooqi in FX Invest and FX Week covering foreign exchange platform consolidation.

Philippe argues that the need for a holistic view of risk provided by multi-asset platforms like TradingScreen is superior to what traders can obtain from FX-only platforms.

“If you are a massive asset manager, with complex risks ranging from centrally cleared derivatives, to FX and fixed income, and multiple interrelationships between the asset classes, why would you go for four/five platforms?” he asks.

He says that not only does TradingScreen calculate a cross-asset view of risk… it goes beyond the reval rate and position calculation offered on incumbent multi-asset order management systems to offer global clients a global view of all their trades, “so they can cross their trades internally if they want to”.

“We do a lot by way of order routing from one desk to another within a client. It’s almost like an infrastructure to them,” says Buhannic. “It’s not plugging FX transactions into the system and revaluing them. We allow them to manage them before that process. We can net the transaction globally if needed; we can do that by construction because we are in all data centres.”

He also highlights TradingScreen’s independent trading analytics. “It’s not simple to do this, because FX is fragmented; you have different prices for different quantities; you can get very different prices via phone than from a pricing engine; you can have a price on the futures market which is equivalent to cash; you can have a price through the crosses, through the forwards market. If you really try to determine what the best available price is, it is extremely complicated to start,” says Buhannic. “It’s a minefield, whereas with equities there is a tonne of market data.”

In the past year, Buhannic says that while it has made some big client wins from rival multi-dealer FX systems such as Axa Investments from FXall, the majority of clients have come from single-dealer platforms, where he claims best execution is hard to prove to end investors.

Read the full article here (with subscription)

Learn more about how TradingScreen is winning major deals in foreign exchange with its multi-asset system