The kACE Dealing Engine is a central process that governs the workflow of a deal from prerequest to trade. It ensures that a deal is checked at various stages in the workflow and only allows it to proceed to the next stage when the check is successful.
The kACE Dealing Engine is configured to govern the following four stages of the dealing workflow.
- Data Check - Early price discovery stage.
Data Check provides a preliminary checking on the counterparty information provided
and selects a tier accordingly
- Price Check - Price discovery stage
Price Check provides a quick check on the various user-provided information, such as product type, currency pair, maturity and tier
- RFQ Check - Request stage
In addition to the data checked at the Price Check stage, RFQ Check (request for quote) also checks for optional data such as amounts and deltas (both at the structure and leg level)
- Trade Check - Deal booking stage
In addition to all the checks performed by RFQ Check, Trade Check will also check for
quote time validity, quote status, spot movement, and price movement
The Liquidity APIs (application programming interfaces) are designed to enhance dealing workflow solutions between systems.
The suite of APIs includes:
The Liquidity API interacts with the components of kACE Pro, which are responsible for sending and responding to requests. This extends the sophistication of price distribution to auto-dealing workflow solutions. The Liquidity API is also designed for simple integration with other systems and can be called by any system capable of making HTTP requests.
Liquidity Settings API
The Liquidity Settings API facilitates programmatic interaction with the components of kACE Pro that are responsible for adding, modifying, and removing dealing rules through the Liquidity Settings screen. The Liquidity Settings API is essential for specifying dealing rules in real-time workflow solutions.
Straight Through Processing (STP)
Bi-directional STP allows the STP server to send trades in real time to core and/or back-office systems.
The STP application programme interface (API) also allows you to create a custom interface that specifies how, where and what trade information to export/import between kACE and the down-stream target system.
kACE Gateway Deal Manager (DM) allows users to:
- Price a FXO product
- Route orders to enabled trading venues
- See indicative prices from certain permissioned venues
A kACE Gateway Deal Blotter (DB) web page will also enable support and client users to monitor request for quote (RFQ) and STP statuses. If the connection goes down, STP messages can be re-transmitted.
- Users can access DM via the kACE Option products, sales component, or a web browser
- DM is able to specify option details upfront, including request type, premium currency and delta hedge requirement
- No need to leave the kACE screen to create order/request to trade
- No manual rekeying of trade requests
- Possible to have combination of both venues
- Possible to hit both multiple venue buttons at the same time
- Includes STP to kACE Pro
- Operational risk can be reduced by transmitting trades automatically back to kACE Pro
- Book mapping to define which kACE portfolio the trade should be routed to
- kACE staff are agnostic to DM venues
- Current venues offer auto liquidity from up to 12 banks, as well as manual liquidity from a further 18 banks
kACE Gateway is a kACE-hosted messaging hub that provides two-way communication
between a customer’s kACE TS deployment and the many participants of the FX derivatives
- Inbound straight through processing (STP) of trades to kACE TS (e.g., from selected execution venues)
- Outbound STP from kACE TS to trade repositories or trade processing systems
- Order routing mechanism (kACE Deal Manager) to execution venues
- Transmission of position values out of kACE TS (for example, for valuation purposes and trade repositories)
- Market data contribution to the kACE community and beyond.
kACE Gateway can offer connectivity to the following venues:
Single-dealer platforms (SDPs)
Multi-dealer platforms (MDPs)
Trade repositories (TRs)
Central counterparties (CCPs)
Middleware connectivity solution providers
Other kACE clients
kACE Gateway: Key benefits
A single connection to multiple venues eliminates the need to build a myriad of different connections and interfaces
Improved execution through access to multiple liquidity sources for price discovery and RFQ
Post-trade STP from single and multi-dealer platforms removes the need for manual ticket capture and increases the speed of transaction processing while greatly reducing the danger of operational errors
Connections to trade repositories and CCPs help users to comply with complex global regulatory requirements as a direct extension of their existing workflow
Access to, and interaction with, the kACE community
- kACE Gateway uses the market standard FIX messaging protocol
- Messaging traffic encrypted via HTTPS
- 24/5 kACE support monitoring connectivity to ensure no loss of service
- Ability for putting prices on screens
The Liquidity API allows you to interface with third-party credit systems at any stage of the