For too long, clients have struggled with the complexities NDF pose, with problems cropping up trying to trade NDFs vs spots that stop trades dead, problems like:
- NDF month settling time scales – retail brokers may need to pay out client PNL the next day
- Having to deal with fixing dates which don’t occur in spots
- Needing to deal with the forward risk stemming from differences in the way retail systems work against NDFs
Finalto’s new offering is designed to slot seamlessly into the client’s existing infrastructure, putting NDFs into the client’s hands without their commonly associated headaches. Now, clients from small hedge funds to money managers and everyone in between can get fundamental exposure to FX markets without worrying about fixing dates and settlement risk.
NDF trades will be available in the below currencies initially with more to follow:
- Indian rupee
- Indonesian rupiah
- Korean won
- Brazilian real
Rupee, rupiah and won trading will be available 22 hours a day. Brazilian real will follow Brazilian exchange trading hours.
Andrew Biggs, Finalto Head of Liquidity, says, “The complexities of NDFs have caused large parts of the retail market to miss out on trading opportunities. We’ve abstracted some of those complexities to allow seamless integration into existing systems and offerings. Let us take away the hassle so you can focus on trading.”
Finalto is the financial division of Playtech PLC, a global and well-established business traded on London Stock Exchange’s Main Market and a constituent of the FTSE 250 index. We are market leaders in next-generation multi-channel trading software, systems and liquidity services which are offered in a B2B capacity to our global partner network.