FX: Traiana co-founder seeks to simplify risk management
The latest venture of one of the co-founders of market infrastructure technology firm Traiana aims to boost the confidence of banks and buyside firms in financial technology by simplifying the process of managing risk across multiple vendor and systems.
Roy Saadon, who left Traiana just over a year ago, describes Access Fintech, launched this month, as a risk management service that helps firms track the trade lifecycle and get a true sense of prioritised risk across an increasing number of systems by bringing together fintech providers and in-house technology, orchestrating the interaction of the distributed providers and creating a single visual display of the risk of financial transactions.
The appetite for fintech in the FX market is evident from demand for lower latency trading and network performance analysis, as well as growing interest in the potential of machine learning to inform trading.
Demand for risk management is growing even more rapidly. Yet Henry Wilkes, co-founder of Institutional FX Advisory Partners, refers to “huge disparities” in the ability of banks to track risk, suggesting that while there is a group of leading banks that have the resources and appetite to build sophisticated risk models and track risk comprehensively, many others continue to struggle with complex structures and markets.
Saadon says the adoption of new technology has been stunted by concerns about loss of control, the burden of regulatory requirements and the cost of incorporating new fintechs.