Sell-side firms wishing to enter the fast-growing forewing exchange market are leveraging white-label trading solutions from established systems providers.

Building a viable trading platform in-house can be an impassable hurdle for firms wishing to enter the FX market, Bob Dantone, vice president of FX at FlexTrade, told Markets Media.

“There are issues of cost and the amount of time it may take to develop a new platform,” Dantone said. “With a white-label solution, firms can forego that process and install a platform that allows them to maintain their brand identity while leveraging established, state-of-the-art technology.”

FX Fifty Five, the FX division of Market Securities Kyte Group, has deployed MaxxTrader, FlexTrade’s white label trading system for sell-side institutions operating in the foreign exchange markets. FX Fifty Five is a specialist electronic FX markets execution venue delivering low latency access to tailored FX liquidity pools via GUI and API.

MaxxTrader manages and polices liquidity in a highly efficient way, which is crucial to operating a pure FX agency, FX Fifty Five said in a statement.

Maxx Trader gives the institution the ability to manage risk, liquidate positions automatically or allow traders to assume the risk, said Dantone.

“This solution also integrates proprietary trading and agency trading allowing for increased profitability,” he said. “It’s a front-end solution allowing orders to trade directly from client to client, directly with the trading desk, or back-to-back with all liquidity providers.”

The product allows the institution to customize liquidity shown to its clients through a robust administrative tool. “This tool allows the institution to put its clients either individually or as a group into different spread groups, currency pairs, spread bands, limits, clients allowing to trade with other selected clients, A book and B book and a host of other options,” Dantone said.