Deutsche Bank’s DBHedge solution has been made available on SmartTrade’s Liquidity FX execution platform.
The bank, via DBHedge, provides a curated service alongside the technology, working with each client to select the most appropriate algo and optimal settings for their specific risk profile. This enables, the bank says, automated, efficient management of externalised positions.
Within Liquidity FX, banks can choose when to internalise, when to externalise via standard execution, and when to route risk to Deutsche Bank through DBHedge. This provides SmartTrade clients with another path for managing internalised risk – alongside the platform’s existing execution methods.
The firms assert that the integration “can support lower traditional technology costs and scale barriers to sophisticated FX risk management, empowering clients to compete more effectively in their home markets”.
Vittorio Nuti, head of algorithmic trading at Deutsche Bank, says, “DBHedge was built to give banks a smarter way to manage the risk they choose to externalise – combining our algorithmic execution capabilities with a curated service that helps each client determine the right algo and the right settings for their specific needs. We are integrating with smartTrade’s LiquidityFX as it is already relied upon by a large number of banks globally. We’re giving those banks direct access to Deutsche Bank’s algo desk technology and helping them achieve better execution outcomes for their central e-books.”
David Vincent, CEO and co-founder of SmartTrade Technologies, adds, “Our clients already use LiquidityFX to internalise flow and manage risk. By integrating Deutsche Bank’s DBHedge, we are giving them a new, sophisticated route for externalising that risk – complete with Deutsche Bank’s curated service to ensure each client is using the optimal strategy.”
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