Liquidity Providers

Since first going live with 6 pilot banks; the number of liquidity providers has steadily grown to 21. We now have over 80% of the leading global FX banks supporting our platform.

With the broadest range of currency support and the majority of the FX Banks on the platform, this un-paralleled pool of liquidity ensures the best possible coverage for all of our clients.

Our portfolio of provider banks continues to increase. Both with global banks as well as specialist regional currency providers joining to provide even more liquidity. We maintain an exceptionally close working relationship with all of our provider banks. Many of who have come to regard us as an effective way of reaching a broader range of clients.

Hedge Funds

Though very much a generic term covering a universe of diverse participants, there are many hedge funds using differing strategies who are active in the FX and FX option space. Digital Vega has worked closely with a core group of key players to deliver a robust market-leading solution that delivers a combination of consistent liquidity and trade workflow management tools.

Systematic Funds

Systematic, model driven funds have the ability to access indicative and executable option pricing via either a buy-side FIX API or via an FX Option Order EMS; this allows FX option orders generated from either a portfolio management system or systematic computer programme to be automatically uploaded, dynamically managed, executed, confirmed and straight through processed by an internal execution desk in a matter of seconds. This unique EMS also provides comprehensive, user-defined execution rules and also offers flexible netting and aggregation rules allowing users to further benefit from spread compression where relevant.

Macro Funds

Using either the intuitive Medusa UI or FIX API, macro funds are able to monitor and react to market opportunities in real-time, creating and submitting requests to multiple providers in 2-3 mouse-clicks, in seconds. Execution benefits are further enhanced using Medusa’s unique manual or dynamic Provider Substitution Algorithm which will always ensure optimum available liquidity for the User’s specific request.

Asset Managers

The Asset Management community are progressively increasing their usage of option structures  to express views or to hedge certain exposures. Thus far, they have not been particularly well served in technology terms and their execution and transaction workflow management has been extremely manual, error prone and cumbersome. In most cases, execution and transaction requirements are onerous; serving multiple accounts across different continents and jurisdictions requires a robust, seamless workflow management solution.

Digital Vega has worked with key clients and partners to develop a comprehensive solution. Users have the ability to automatically:

>Upload orders from OMS > create order block > pre-trade TCA based LP selection

> manually or automatically execute block order > post trade allocate across accounts

 > feed completed transaction details back into OMS > notify winning LP of allocation split.

Users also have the option to break down larger orders using Digital Vega’s proprietary TWAP execution engine and finally utilise Digital Vega’s benchmark-based automated option expire solution.

Private and Regional Banks

Private and Regional Banks are already major users of the Medusa platform. Aggregated simultaneous pricing in competition, delivered instantly via a single intuitive GUI delivers huge benefits to the user - at no cost.

Bank Trading desks are assured of instant and accurate indicative or tradable prices, deep and consistent liquidity across 60+ active currency pairs and structures. Trading Desks are increasingly using the Medusa platform to price and cover specific client flows in which they do not have an active interest. Electronic trading also allows dealers to react more quickly to changes in markets, adjusting positions in seconds rather than relying on less efficient, traditional channels for which they are also charged brokerage.

Sales desks actively use the platform to access instant, accurate indicative pricing for clients rather than consistently bothering trading desks for price levels. Several large sales desks are already using Medusa to immediately cover smaller client trades; with the benefit of Digital Vega’s STP connectivity, efficiency savings are significant.

Agency Brokers

The Medusa platform is easily deployed and has become a critical element of some Agency Broker’s workflow. Liquidity is either centralised and used by internal execution traders, or alternatively, the platform can be very easily white labelled; rebranded and distributed to end clients around the globe.

Digital Vega provides all the necessary infrastructure and limit management tools to support a sophisticated white label deployment.

Prime Brokers

Over recent years there has been a growing trend in the use of prime services by hedge funds and other buy side firms, particularly in FX. By consolidating trades and netting exposure buy side clients are able to reduce the amount of collateral they are required to post. By trading in the name of their prime broker, clients are able to eliminate the credit exposure to the dealing counterparty. Digital Vega has developed a range of services for the Buy Side, Prime Broker and Executing Broker. Our platform automates the overall process and helps reduce margin requirements, operational and credit risk for all participants.

Clients are able to use one or more prime brokers on the Digital Vega platform. They can map prime brokers by fund name or even currency pair.