MX.3
for Sales and Trading

LEADING THE WAY IN CROSS-ASSET FRONT OFFICE

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.

Functional Coverage

Asset Classes

  • FX

    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.

  • FX Derivatives

    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.

  • Money Market

    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.

  • Fixed Income

    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.

  • Security Finance

    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:

     

    1. Pricing with multi-curves calibrated with sophisticated techniques.
    2. Discounting based on multi-currency collateral.
    3. Supporting IRD modeling subtleties : negative rates management, enhanced SABR framework, multi-curves Markov Functional or BGM models.
    4. Managing the specifics of all financial markets: CME swap futures, Brazilian DIs and IDIs, China 7day indexes...
    5. Registering trades to risk based P&Ls and live risk while going through the standard clearing workflow.
    6. 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.

  • Credit 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.

  • Equity Derivatives

    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.

  • Commodities

    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.

Resources

VIDEO: Expert Talk, Build or Buy? Why Banks should take a Hybrid Approach to their IT

 

In this video, Maroun Edde, CEO at Murex, advises banks on owning their entire technology factory, combining internal building, mutualizing with partners and fully outsourcing to adopt a hybrid approach.

View the video

REPORT: Fundamental Review of the Trading Book (FRTB) 2017

 

Risk.net and Murex have collaborated to produce this updated Special Report on FRTB. Murex expert Frank Heanue, shares insight and recommendations for banks preparing for the upcoming regulation.

Read more

VIDEO: Expert Talk, Murex, Your Technology Partner for the Future

 

In this video, Maroun Edde, CEO at Murex, looks at some of the challenges our clients are facing and discusses how Murex’s long-term partnership approach can help overcome them.

View the video

CASE STUDY: 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.

 

Read More

Transformation of treasury – The story of bank liquidity

 

Marc Bernert, Treasury Business Solution Supervisor at Murex, discusses the two largest challenges facing banks—costs and regulations—and what they need to be doing today in order to transform their treasury in the future.

Read more

VIDEO: The Right Strategy for a Head Start on FRTB

 

 

Bruno Castor, Head of Market Risk at Murex, discusses why banks need to start working now on FRTB compliance.

 

Read more

VIDEO: FRTB - What is the Real Impact for the Risk Industry?

 

Marwan Tabet, Head of Enterprise Risk Management at Murex, speaks with RiskMinds about how FRTB will impact the risk industry and the issues that banks need to address ahead of its implementation.

View the video

VIDEO: Expert Talk, Risk and Regulation Transformation – A New Technology Paradigm

 

In this video interview, Alexandre Bon, Global Head, Risk Control at Murex, discusses the value of innovative technology and collaboration models in helping financial institutions adapt to fast-evolving regulatory and business requirements.

View the video

REPORT: Fundamental Review of the Trading Book (FRTB)

 

Murex and Risk.net collaborate in this Special Report on FRTB, which provides all you need to know to prepare for the coming regulation.

 

Access the report

VIDEO: Holding the Right Tools for Regulatory Challenges

 

Murex CEO, Maroun Edde, speaks with Thomson Reuters about how new technologies and global regulations continue to reshape the terrain in which financial services firms operate.

View the video

News & events

  • 25

    May

    26

    May

    Event

    Risk Asean FRTB Workshop

      Bangkok, Thailand                                          Murex is pleased to host two training sessions at the FRTB workshop and extend to you a discounted rate for... Add to calendar Event Details

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The information collected is processed for the sole use of Murex SAS in ad hoc communications and is therefore subject to dispensation no. 7 of the Commission National Informatique et Libertés (or 'CNIL', the French data protection authority). Pursuant to French Act No. 78-17 of 6 January 1978 as amended in 2004 (the French Data Protection Act), you have the right to access and rectify your personal information or data and the right to object to the processing of such data by contacting mkg@murex.com.