kACE, the FX technology unit operated by BGC Partners’ Fenics Software subsidiary, has partnered with quantitative analysis solutions vendor Algorithmica, to launch the kACE Volatility Aggregator (kACE VA) application. The solution is aimed primarily at buy- and sell-side firms, and corporate treasuries that consume FX Option volatilities and wish to customise the data they receive.
kACE VA allows users to combine FX option volatilities from multiple sources, to create a unique volatility surface that feeds downstream into clients’ front, middle and back office systems. The application gives users full control over blending aggregation and data cleansing algorithms, providing custom weighting and data selection criteria as well as removing outlier and stale data.
kACE VA was created in response to an increase in demand for transparency around the underlying data sources used across functions such as price construction and risk management, says Rich Winter, Senior MD, Global Head of Fenics Market Data and Information Analytics. “Generic ‘black box’ feeds that provide a price without provenance are no longer enough,” he says. “Our clients wish to create their own golden source of data, pulled from counterparty banks and specialist market data providers, such as Fenics Market Data, which gives them control and visibility on where the prices originated.”
kACE VA operates as an open system, giving clients freedom to choose their preferred data sources. Connectivity to BGC and Fenics Market Data, several market making banks, and Refinitiv’s TREP and Bloomberg’s B-PIPE, comes out of the box. APIs are also provided that allow clients to publish to their preferred destination, including the company’s kACE Pro trading platform, enabling greater automation of workflow.
“Five years ago, other than the top 20 banks in the world, people really weren’t looking to automate their client business,” says Richard Brunt, Managing Director, kACE; Global Head of Sales, Market Data and Analytics. “This has changed, all levels of banks are looking at automation and how to interact with their clients electronically via multi-dealer platforms or proprietary platforms, or even just to make internal processing between sales and trading more efficient.”
The kACE VA application, which is currently in soft launch phase with several clients and is scheduled for a full release later in September, is designed to operate as either a stand-alone product or as an integrated module within kACE Pro.