Flow Traders Taps into Corvil’s Predictive Analytics to Simplify Intraday Risk Management
DUBLIN, Ireland, Sept. 26, 2018 — Corvil today announced that Flow Traders, a leading global technology-enabled liquidity provider specialized in Exchange Traded Products (ETPs), has deployed Corvil’s Intelligence Hub to streamline compliance with Order to Transaction Ratio (OTR) requirements.
Until now, meeting MiFID II RTS-9 requirements to monitor and, where appropriate, limit the ratio of unexecuted orders to transactions, has been an onerous, retrospective and costly burden for compliance teams. With many market participants traditionally dependent on end-of-day or similar reporting to assess their overall activity relative to OTR limits, they require new information and processes to effectively manage regulatory risk before finding that they have exceeded thresholds.
Flow Traders, already maintaining a high standard for proactivity and transparency, sought to fortify its OTR compliance, selecting Corvil to assist. To ensure valuable resources remained focused on development efforts for its core trading business, Flow Traders chose to buy a solution rather than build this capability in-house. Through its predictive analytics and live insights, Corvil Intelligence Hub facilitates an entirely new business process that empowers Flow Traders to be more proactive in identifying, triaging, and actioning areas of potential risk. It also simplifies responses to regulatory queries by providing a complete forensic record of all order lifecycle messages.
“Ensuring ongoing compliance with applicable rules and regulations is sustained by being agile and focused on continuous improvement and implementing the latest technology to increase overall effectiveness,” said Thomas Wolff, Chief Technology Officer and member of the management board of Flow Traders. “Corvil is helping Flow Traders to navigate OTR requirements with a simplified and consistent process for continuous oversight. Enhanced transparency into desk and trade strategy impacts and predicting conditions, assures us of a leaner, faster and optimized compliance function.”
Intelligence Hub complements Flow Traders’ existing deployment of Corvil Analytics. It leverages live trading order lifecycle data and applies machine learning to analyze firmwide, per-instrument and per desk OTR metrics, at scale. By continuously anticipating end-of-day ratios, it proactively identifies and alerts to compliance risks that require action. Diverse teams can explore, visualize and perform multi-dimensional analysis of data across venue, market, instrument, and desk to improve decision-making and track the impact of corrective actions.
With deployment complete for a number of venues already and more planned, Flow Traders is also beginning to look beyond OTR at other risk and compliance use cases Corvil Intelligence Hub can satisfy.
“Regulatory risk management and compliance carry increasing overhead, complexity, and costs for organizations. Corvil Intelligence Hub offers advanced analytics powered by machine learning to provide faster time to market and lower cost to customers in meeting these requirements,” said David Murray, Chief Marketing and Business Development Officer at Corvil. “We are delighted to extend our partnership with Flow Traders and assist in delivering resilience to evolving compliance demands.”
Corvil is an industry leader for deriving Security, Operational, and Business intelligence from network data. As companies adopt faster and smarter machine technology, it becomes critical to tap into richer and more granular machine data sources to safeguard the transparency, performance and security of critical infrastructure and business applications. The Corvil streaming analytics platform captures, decodes, and learns from network data on the fly, transforming it into machine-time intelligence for network, IT, security and business teams to operate efficiently and securely in this new machine world. Corvil uses an open architecture to integrate the power of its network data analytics with the overall IT ecosystem providing increased automation and greater operational and business value outcomes for its users. The Corvil solution is trusted by leading financial institutions to safeguard their businesses across the globe involving 354 trillion messages with a daily transaction value in excess of $1 trillion.
About Flow Traders
Flow Traders is a leading global technology-enabled liquidity provider, specialized in Exchange Traded Products (ETPs). As a principal trading firm, we focus on providing liquidity in financial products both on- and off-exchange across the globe on an ever increasing number of venues and to a constantly growing number of institutional counterparties 24 hours per day. Our strategies are designed to use information that is publicly available and we use fairly simple, non-controversial and transparent order types. Founded in 2004, we continue to cultivate the entrepreneurial, innovative and team-oriented culture that has been with us since the beginning.
As a technology company operating in a financial environment, we use our principal technology platform to quote bid and ask prices in thousands of ETP listings, as well as similar financial products. We also provide liquidity to institutional counterparties off-exchange across all regions; the Americas, APAC and EMEA. Market participants benefit from higher execution quality and lower overall trading costs, while the markets benefit from greater efficiency and more transparency.