Order management specialists Barracuda FX have launched OMS Cloud, creating a brand new product designed to allow banks of all sizes to be active in using OMS technology.
Many banks who participate in the forex market have been left without the capacity or the resources to implement OMS tools, but now the Dublin based firm hopes that will change.
Kieran Fitzpatrick, CEO of Barracuda FX, explained: “We have launched a cloud version of Barracuda’s OMS platform. Larger FX banks typically manage tens of thousands of FX orders, and many support this process by using our core OMS platform, hosting it themselves. Banks with a smaller FX franchise still need an OMS service but may not have the resources to host it themselves. OMS Cloud is designed for them.”
He added: “We are targeting regional and country-level banks which manage FX orders on behalf of clients. FX orders are a key component of a full FX service, regardless of the size of the bank, its order book or its client base. All banks and orders are subject to the same service demands, compliance oversight, regulations and best practice guidelines.”
Barracuda FX were inspired to develop the technology, after being approached by some mid -tier FX banks, who were interested in their OMS service.
Fitzpatrick continued: “They recognised that the current process of either managing orders manually, or outsourcing them to single bank FX trading platforms was outdated. Manual workarounds, or using spreadsheet macros, are risky and highly inefficient, and using a single bank platform certainly doesn’t provide sufficient control or auditability.”
Barracuda believe that they have the ability to beat their competitors when offering OMS products to clients in the forex market, as they a specialists in this sector, with a history of creating OMS platforms with new and innovative features, since their inception in 2009.
Barracuda Order Hub, is available to all clients whether they are core OMS or OMS Cloud.
Barracuda Order Hub
A major development is their unique Barracuda Order Hub, which is available to all clients whether they are core OMS or OMS Cloud.
The Order Hub is an electronic order passing network, where banks can pick and choose which orders they wish to manage and execute themselves. This is configurable by variables such as time, size, currency and instrument. Additionally, they can use Order Hub to outsource all orders where the bank has no appetite or is unable to manage them.
Barracuda say that this allows optimum management of a bank’s order book, which should result in banks enhancing their ability to serve clients, to capitalise on franchise expertise, and manage its risk more efficiently than before.
Fitzpatrick reflected: “All of this is done within one single container and is fully secure, automated, audited and controlled.”
To support Order Hub, Barracuda already has many of the world’s leading forex banks as liquidity providers and Fitzpatrick states that, “OMS Cloud has a massive amount of potential for us, broadly speaking the banks that need this service are number 100-500 in terms of the amount of FX orders they manage. Every component of the OMS Cloud is operational, available, proven and ready for immediate use. We are already seeing a significant amount of interest from mid-size banks.”
One of the major drivers of why banks have changed the way in which they manage FX orders is the FX Global Code, which was released after two years of consultation in May this year. The code was focused on six main areas which included ethics, governance, information sharing, execution, risk management and practice and a confirmation and settlements process.