TradingScreen Adds FX Functionality for Dodd Frank Compliance

TradingScreen has added functionality to its execution management system (EMS) that is in compliance with the Dodd-Frank Act covering certain foreign exchange transactions. The Act requires firms to display midpoint pricing on FX pre-spot, forward outrights, non deliverable forwards and swap trades.

Trading Screen said it implemented the functionality ahead of the deadline to ensure that swap dealers and their clients experience uninterrupted service when the Dodd Frank rules to into effect on May 1, 2013.

“The buy side and sell side face many challenges in a constantly changing regulatory environment,” commented Jean-Philippe Malé, Head of OTC for TradingScreen in today’s release. “TradingScreen is working hard to ensure that our clients and partners stay ahead of these mandates, without bearing additional costs or delays.”

This mid-point price information, which is either calculated by TradingScreen or supplied by brokers, can also be used to assist with clients’ transaction cost analysis or TCA, the company said.

“The new Dodd-Frank requirements add a great deal of transparency and insight into foreign exchange trading,” stated Jon Fatica, Head of Analytics for TradingScreen in the same release. “The mid-point price information makes our current transaction cost analysis platform even more valuable, helping traders identify lower-cost execution venues and increase alpha.”

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio