Gain deploys StreamBase LiveView as solution for liquidity optimization
Gain Capital, the retail and institutional FX broker, has signed up with the technology firm StreamBase to use its groundbreaking StreamBase LiveView – a real-time analytics tool launched this year – to enhance the firm’s liquidity and risk management.
Using LiveView analytics, which processes live and historical market data going through an application programming interface (API), Gain can monitor its trading eco-system in real time, in a progressively fast-moving and fragmented FX market. It hopes the tool will allow them to provide better quality and more consistent pricing for its customers. Specifically, Gain can use the software to monitor and compare metrics, such as the speed and consistency of streamed rates and differences in bid-offer spreads, among its liquidity providers for all currency pairs offered.
The real-time analytics system, which Gain says is unique in the marketplace, is particularly useful around periods of high activity, such as important economic data releases, when liquidity has the potential to become more sporadic, and prices tend to widen.
“With these tools, we can see if any metrics are moving outside of our comfort zone, and we can immediately reach out to our liquidity providers to understand what’s going on,” says Rob Perez, vice-president of trading and risk-management systems at Gain Capital.
Delays in pricing might also be the result of connectivity issues, which providers might not be aware of. LiveView alerts flag up any such issue, which, after contact with the provider in question, could be fixed.
In the event of individual providers not being able to meet the standard deemed acceptable by Gain, their connection can be temporarily suspended, ensuring high quality and consistent liquidity is maintained on Gain’s system.
Gain used to rely on conducting business intelligence after an observed fact, using historical data, rather than being able to monitor and act upon anomalies as and when they occurred.
“What we have now is the ability to know exactly what is going on in real time, allowing us to work more closely with our partners and tweak our systems accordingly,” adds Perez.
“Ultimately, if we’re managing things in real time, and are able to effectively tweak them in a timely manner, the benefit will be with our customers, who are able to see better prices and get orders done more efficiently.”
Further benefits include the option to pass some of the front-end tools offered within LiveView on to Gain’s end-users to assist with their own middle-office requirements.
StreamBase CEO Mark Palmer says the LiveView service has been taken up by other FX firms that focus more on using real-time risk-management analytics. He says StreamBase LiveView has wide applicability to any brokerage or multi-dealer platform in FX and other markets.