FlexTrade rolls out FlexSpread
First Published Tuesday, 29th June 2010 from Automated Trader : EMS News
FlexTrade launches cross currency program for pairs trading and risk arbitrage
Vijay Kedia, President and CEO, FlexTrade: "With FlexSpread, a trader can seamlessly execute trades among multiple securities in different currencies."
FlexTrade Systems, Inc., the provider of multi-asset algorithmic execution management systems, has launched a new cross-currency spread program called FlexSpread for the equity markets in the Americas, Europe and Asia.
Available as a stand-alone application or through FlexTRADER EMS, FlexSpread's functionality handles cross-currency spreads, such as a US equity security/ETF and a sterling or euro-denominated equity. Traders can choose which currency to balance the spread. FlexSpread also facilitates currency hedging and can program a number of options to handle currency exposure, from adjusting on an equity fill-by-fill basis to adjusting when it reaches a certain amount or a fixed move has occurred in the currency. In addition, the new algorithm also manages cross-currency risk arbitrage deals.
According to Vijay Kedia, President and CEO of FlexTrade, offering a robust spectrum of trading functionality is always a priority. "Anything that gives traders the edge they need to get the trade done," he said. "Cross-currency functionality in electronic trading is increasingly important in today's global and interconnected markets. With FlexSpread, a trader can seamlessly execute trades among multiple securities in different currencies."
Trading options available through FlexSpread include:
· A pairs trading strategy where one sells/shorts one security and buys another in equal dollar amounts, or in a dollar ratio, subject to a price relationship.
· Risk arbitrage to trade an announced takeover deal, including cross currency deals.
· Cross currency equity pair trades where a trader executes a pair trade in two securities denominated in different currencies.
"FlexSpread has been designed with the traders in mind," continued Kedia. "It offers an easy-to-use ticket design and accommodates a wide and customizable set of execution strategies."