MarketFactory Expands its Product Suite, Launches Reflector, Offering Better Pre-Trade Risk Management Solution

Darren M. Jer, MarketFactory CEO and Co-Founder
Darren M. Jer, MarketFactory CEO and Co-Founder

Financial services have gone through a sea change in the past decade through the use of technology, artificial intelligence, automation in the sector. MarketFactory, a leading financial technology services company that provides software-as-a-service to the forex market players has been making major strides with its path-breaking software solutions to brokerages and market participants.

The company primarily focuses on the FX spot, futures and non-deliverable forward (NDF) markets catering to all market participants and provides access to all major market venues. Its ultra-low latency Fx Aggregator written in C++ on Linux normalizes over 40 protocols to over 85 different Fx venues allowing customers to focus on pricing, trading and also allows risk monitoring through its different software suites.

Founded in 2008, by Darren Jer (CEO) and James H, Sinclair (Executive Chairman) as neutral provider of institutional forex trading solutions has come a long way since then. It is believed that their initial understanding of the partnership was formed in EBS and ICAP where they have worked together for a long time. Darren Jer has led sales and operations in the financial services markets for over a decade in companies like EBS, ICAP and IBM. Incidentally, Darren is not a finance and technology person in the first place as his educational background includes BA in English and political science from Duke University. James H., the other co-founder was into the roles of research and strategy of foreign exchange and fixed income at ICAP Electronic Broking and held several positions at EBS since its inception in 1991, including head of Asia/Pacific business division. He has also worked as VP at Citibank based in Hong Kong and Tokyo for over a decade. James has pursued BS in engineering from Imperial College London. James is also a member of the Foreign Exchange Committee (FXC) and BIS Markets Participants Group (MPG), where he has co-chaired the Examples Working Group that wrote the examples in the new FX Global Code of Conduct.

MarketFactory’s software solutions include Whisperer (a market data and orders normalization software solution), FX Aggregated GUI (allows trading with multiple brokers in the same screen), Hosting & Networking Services (establishes a connection between liquidity provider). The latest on the line of the offering is Reflector, a pre-trade risk management solution for banks, prime brokers and funds to ensure trading limits are never breached.

Reflector, the First Pre-Trade Limit Monitor has been launched globally on May 23rd, 2018, addresses the need for risk management software that eliminates installation for the client. It works with any FIX API, and monitors and balances all limits and positions across all trading venues. Further, it checks all orders pre-trade with a latency impact under three microseconds 99.999% of the time and currently supports over 60 trading venues.

Some of the pre-trade checks executed in microseconds that help traders to prevent errors in trading, thus allowing only risk-reducing trades.

  • Real-time, pre-trade checks against global limits across all venues
  • Set Net Open Position (NOP), Daily Settlement Limit (DSL), P&L
  • Customize limits on base currency, currency pair, trading entity, trading groups, netting, tiering, margining and more to capture complex relationships
  • Web and/or API administration
  • Safety checks: order size, throttle checks, quotes in the market, and pending limits

“Reflector enables our clients to dynamically manage both FX market risk and FX credit risk across FX venues and their proprietary client trading platforms.”

James Sinclair, Executive Chairman of MarketFactory
James Sinclair, Executive Chairman of MarketFactory

James Sinclair, Executive Chairman of MarketFactory during the global launch of Reflector: “Runaway algorithms or simply breaking a limit remains a major risk in an increasingly complex market. We are very excited to see the positive impact that Reflector has for our customers. This includes both ensuring limits will be not be breached and allowing the more efficient use of available credit.”

The company currently partners with over 100 global banks, funds and ECN, brokers, hedge funds and exchanges and has presence through office in New York and London. The company is backed by FirstMark Capital and private equity investors.