The transformation of capital markets has compelled financial institutions to reassess business strategies, adapt product sets and rethink distribution channels under constraints of scarce capital and limited funding.
MX.3 is a powerful catalyst to accelerate business transformation and implement new profitability models, based for example on web distribution of products with an end-to-end automation of processes, on expansion into local markets or on fast introduction of new generations of structured products for specific client segments.
market-leading FUNCTIONALITY for each business line
MX.3 front-office solutions are recognized as one of the leaders, and in many case as the clear leader, for cash and derivatives, in each asset class and for each business line. Its comprehensive functional coverage spans from risk-based pricing and structuring to real time portfolio and P&L analysis.
MX.3 provides the most complete product mix in the industry along with the flexibility to create new products. This allows our clients to respond rapidly to market opportunities, and when required to support complex legacy books.
Naturally adapted to transforming markets
Optimizing capital usage and risk charges at trading decision level is just one example of necessary process transformation. It is natively available in MX.3 and made possible thanks to a native integration of trading and risk measures, and to the availability of consolidated views of risks and assets in real time. For example, the trade acquisition process supports real time IM calculation, CVA charge pricing or real-time checking of PFE limits.
More generally, MX.3 supports the latest in front office analytics and business processes, for example pricing with multi-curve and collateral discounting, and full connectivity with market platforms.
OTC and listed. Flow and complex, country specifics. Extensible.
xVA, Initial Margin. Real-time limits check.
Multi-curve, Collateral discounting, xVA. Specialty analytics.
Real-time. High performance. Risk metrics. Stress analysis. P&L explain.
Web and mobile apps. One click trading. RFQs. Order management. Executions. Operations.
Execution and clearing. Trade repositories. Data providers.
Auto completion. Sanity checks. Automated risk allocation.
P&L and cash management
Full analysis and allocation of P&L and funding.
MX.3 has been designed as a global FX factory in a connected world of automated trading and large-scale distribution to clients.
Tailor-made client servicing is supported by a comprehensive product mix from simple spot, forward and swaps to callable, pro-rata, NDFs, extensions or local markets specifics.
Web and distribution tools automate order execution and efficiently organize clients’ communication with their relationship manager.
The platform eliminates inefficiencies along the value chain, with the highest level of performance and availability in the industry.
For any trade captured globally, the entire risk and P&L picture is instantly delivered to trading managers.
Risks and revenues are automatically allocated following your business rules: sales margins are converted, illiquid currency pairs are split. Rule-based compliance is executed and trades enriched, for instance, to enable CLS connectivity.
MX.3 confirms its long established leadership, perfectly adapting its product mix to today’s demand, more concentrated on vanillas and a narrower range of exotics, primarily TARFs and accumulators.
It brings easy innovation in emerging markets specifics, or with hybrids such as DCD/TCDs.
For FX traders and structurers, MX.3 drives profitability with the accuracy of pricing models such as SLV, advanced volatility marking, and expert sensitivities capturing spot/vol correlation.
MX.3 supports the development of new business via electronic distribution of vanilla and exotic products to institutions’ core client base. It organizes the whole communication workflow between clients, relationship managers, and traders, automating the front-to-back chain whenever possible, and making the sales process more efficient.
The need to diversify sources of liquidity and actively develop secured funding has reinforced the central role of money market desks in trading.
MX.3 delivers a global hub to service internal and client businesses across their funding and hedging requirements. Its versatile product catalog supports any strategy to optimize liquidity buffers and maximize the overall yield.
Traders get full visibility and granularity with real-time global liquidity ladders and securities inventory, which feed expert risk profiles. Trading books with associated mark-to-market risks, as well as banking books, both marked-to-market and accrual modes enabled, can be managed.
MX.3 delivers operational excellence to the entire value chain for high volumes, with a specific focus on user experience and high performance.
The variety of debt instruments has grown significantly, fueled by government spending, funding shift from bank loans to bonds and investor sustained appetite for diversified risk profiles.
MX.3 provides fixed income specialists with a leading trading solution covering government and corporate bonds as well as structured securities on a very large scale of developed and emerging markets. It enables treasuries and institutional investors to efficiently diversify their investments and funding vehicles.
The product catalog covers all types of vanilla or complex issues, such as mortgages, FRNs, or local markets specifics for Latin America, Asia or Australia.
MX.3 accurately manages all types of risks, including bond yield, interest rate, credit, inflation and prepayment.
The platform also manages the enterprise inventory of securities.
A greater need for secured funding and collateral along with the expected benefits from lending held assets are making optimization of global security inventories a must have and security finance a vital organ in trading rooms.
MX.3 reinvents active trading off the enterprise asset inventory, providing funding and collateral trading desks with a real-time view of their equity and bond enterprise inventory. The product catalog features for instance tri-party repos with agent connectivity, specials, security lending borrowing, and synthetic financing, all on vanilla or complex instruments. Corporate actions can be executed automatically. Compliance and concentration rules as well as collateral eligibility checks automatically apply.
Interest Rates Derivatives
The daily work of an IRD trader has substantially changed:
- Pricing with multi-curves calibrated with sophisticated techniques.
- Discounting based on multi-currency collateral.
- Supporting IRD modeling subtleties : negative rates management, enhanced SABR framework, multi-curves Markov Functional or BGM models.
- Managing the specifics of all financial markets: CME swap futures, Brazilian DIs and IDIs, China 7day indexes...
- Registering trades to risk based P&Ls and live risk while going through the standard clearing workflow.
- Calculating PFE, CVA or IM in real-time across multiple counterparts for best execution.
These are only examples of what trading a basic swap or option now means. This is what MX.3 brings, an immediate solution to all of the complexities of today’s linear, options and structured trading.
While credit trading has largely refocused on standardized instruments, and to some extent on cleared products, the appetite for sophisticated products is still strong with specialized investors.
MX.3 is one of the few platforms packaged to optimize flow credit trading, whether for spreads trading or for credit risk hedging of corporate and emerging market bonds.
End-to-end processes are streamlined, including interaction with affirmation, execution and clearing platforms, or the automation of credit events processing.
The versatility of the platform also delivers full flexibility to those CLN traders or hedge funds engaged in optional and correlation products.
Flow trading is supported through speed, connectivity and accuracy of risk management for large portfolios on a comprehensive product range. Analytics include local and stochastic volatilities, SABR or SVI interpolation methods and smile dynamics.
Structured trading: MX.3 natively provides the most demanded structures, such as autocallables, accumulators, and variance swaps, with quality analytics tracking local volatility or equity/credit correlation. EMTNs, structured bonds or warrants can be issued on the fly.
Convertible bond trading: MX.3 supports an extensive variety of clauses including dividend protection, exchangeability, ASCOTs for hedging, and tailor-made funding structures. It accurately captures credit, rates, and FX risk dimensions.
Delta one: The product mix ranges across all types of ETFs and synthetic products to provide other desks with liquid hedging instruments. Its powerful real-time portfolio management fully supports specific arbitrage businesses.
While post super-cycle margins lessen and regulatory pressure particularly increases the cost of trading in commodities, MX.3 offers an all-in answer to optimize business decisions.
MX.3 delivers a global view for physical, financial risks and inventories, across base and precious metals, agriculture, oil and refined products, power and gas.
The platform allows banks and commodity houses to develop client services and quickly arbitrage between products and geographies. Producers and utilities can optimize production, transformation and trading decisions by having an integrated view of the supply chain with trading. Commodity and FX risks as well as volume operational risk are monitored in real-time with specific screens for position analysis, basis risk, VaR, delivery risk or physical delivery views.
MX.3 supports the nuances of each market, for example warrants delivery, sub-hourly power curves, gas storage or harvest periods.
Murex and Tullet Prebon Information (TPI) partnership
Murex and TPI have signed a partnership agreement to enhance client experience through access to high-quality market datasets.
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