FlexTrade Systems, a provider of multi-asset algorithmic execution management systems, has launched a new cross currency spread program called FlexSpread for the equity markets in the Americas, Europe and Asia.
Available as a stand-alone application or through the FlexTRADER EMS, FlexSpread’s unique functionality handles cross currency spreads, such as a US equity security/ETF and a sterling or euro-denominated equity.
Trading options available through FlexSpread include: a pairs trading strategy where one sells/shorts one security and buys another in equal dollar amounts, or in a dollar ratio, subject to a price relationship; risk arbitrage to trade an announced takeover deal, including cross currency deals; and cross currency equity pair trades where a trader executes a pair trade in two securities denominated in different currencies.
According to FlexTrade, traders can choose which currency to balance the spread. FlexSpread also facilitates currency hedging and can program a number of options to handle currency exposure, from adjusting on an equity fill-by-fill basis to adjusting when it reaches a certain amount or a fixed move has occurred in the currency. In addition, the new algorithm also manages cross currency risk arbitrage deals.
Vijay Kedia, president and CEO of FlexTrade, said: “Cross currency functionality in electronic trading is increasingly important in today’s global and interconnected markets. With FlexSpread, a trader can seamlessly execute trades among multiple securities in different currencies. FlexSpread has been designed with the traders in mind. It offers an easy-to-use ticket design and accommodates a wide and customizable set of execution strategies.”