New FX platform solves market transparency problems for Fund Managers

Many concerns have been raised about transparency of foreign exchange execution.  Investigation of custodian banks pricing of standing instruction business is ongoing, and regulators continue to study the issues surrounding FX market activity at the time of the industry standard daily benchmark fix at 4pm London time.  The fallout from these investigations has already led to many suspensions and resignations of dealing staff across the globe.

For Fund Managers, their Asset Owner clients, and their counterparty banks alike, there is now huge demand for solutions that move electronic trading to a much higher level, enabling a data-driven transparent proof of best execution to be generated.

Now there is a solution.  Molten Markets has quietly built and deployed the only dedicated FX trading platform for Fund Managers to be launched in the past 18 years.  The first client of InstiFX is now live and trading with their chosen panel of counterparties.  Every trade they do is:

• managed through the embedded execution management system;
• supported by a unique pre-trade analysis of execution options (for which a patent is being sought);
• executed with a choice of  trading counterparties through a wide variety of manual and automated trading methods; and is
• reported on through real-time TCA (transactions cost analysis) to demonstrate best execution.

“The move away from trading at benchmark fixing times is critically important”…says John Atchue, co-founder of Molten Markets.  “Long before the current investigations into “the Fix”, it was very clear to all market participants that the FX market is heavily distorted by the sheer size of transactions being accepted by banks as zero-revenue risk transfer trades at 4 pm London time.  This was always unsustainable, but until now there has not been a reasonable alternative”

“The key to our solution is that we have finally cracked the problem of how to do FX TCA properly…adopting real-time implementation-shortfall style TCA from the equities markets, while solving for the lack of a National Best Bid and Offer (NBBO) in FX.  The solution requires real-time management of vast amounts of data, which our chosen infrastructure is uniquely capable of delivering”, says Simon Wilson-Taylor, President and CEO of Molten Markets.

Francisco Heredia, co-founder, adds “We began showing the production version of InstiFX to clients in Q4 2013.  The clients we have already signed include the largest fund managers in the world, which is clear evidence of the demand for our ground-breaking solution”.

For further information, please contact Simon Wilson-Taylor, President and CEO, Molten Markets Inc.  on +1 203 487 9481 and simon@moltenmarkets.com

Notes to editors

More information, including bios of the management team, is available at:

www.moltenmarkets.com

About Molten Markets Inc

Molten Markets Inc, launched in April 2012, provides best of breed financial marketplaces to the investment management world. The corporation offers two key products, MoltenFX, its ECN, which commenced trading in April 2013, and InstiFX, designed to meet the specific needs of the institutional market. Led by industry pioneer, Simon Wilson-Taylor, Molten Markets is deploying the newest and most advanced technology available to provide the highest standards in execution quality and transparency.