In this initiative, Citi, Deutsche Bank, JP Morgan and Morgan Stanley are the partnered brokers, together with FX platforms, Bloomberg Tradebook, Currenex, EBS, FXCM, Hotspot FX and Thomson Reuters.
Traiana said by connecting prime brokers and ECNs in real-time, the service will provide the FX industry with the control and real-time risk management capabilities to manage risks from algorithmic and high frequency trading.
The launch of the new version of Harmony CreditLink combines a comprehensive effort by all partners over many months, and is live and available to all Harmony members.
According to the Traiana, using Harmony CreditLink, prime brokers can now have the ability to monitor their clients’ credit risk across multiple ECNs on a real-time basis, act on exceptions in a single integrated dashboard, and open, change or close credit lines to manage risk while maximizing clients’ trading ability.
With real-time integration to ECN credit and post-trade APIs, Harmony will proactively notify the prime broker of limit breaches and allow the prime broker to modify credit lines or terminate trading activity with an integrated KillSwitch capability.
By providing centralized, automated and secure ECN limit management, credit risk for all counterparties are expected to be reduced significantly.
Andrew Coyne, Head of FX Prime & G10 eCommerce, Citi, said: "This collaborative industry initiative addresses a fundamental and immediate industry need – that of providing trading and limit management to prime brokers to enable them to monitor their clients’ credit risk in real-time. Initiated independently of any regulatory call for change, this new solution will fundamentally change the way the FX industry operates going forward."
Traiana provides global banks, broker/dealers, buy-side firms and e-trading platforms with solutions to automate post-trade processing of financial transactions.
Traiana, an ICAP company, is headquartered in New York City with offices in London, Chicago, Tel Aviv and Tokyo.
