Currency Investment Technologies to take a walk on the buy side

FX Week has learned that Currency Investment Technologies, a financial software services company that has previously served banks and financial institutions, is planning a move into buy-side customers that would see it working directly with asset managers for the very first time.

The company is launching the new approach in response to a significant tightening of market conditions in the credit space since the start of 2015. Credit has become much more difficult to access as costs have also rocketed.

Karl Rosenblatt, chief executive of Currency Investment Technologies suggested that the company would begin serving buy-side clients through the banks and financial institutions that it has previously built relationships with. However, he hinted that the company is also open to serving such clients directly, depending on their needs and the available opportunity.

Currency Investment Technologies has already entered discussions with around 30 of the major buy-side players about their new offering. The company is working to build critical mass for this new offering at a time when it requires additional liquidity thanks to the high demand it has experienced for its Unique Liquidity Network pool, particularly from customers in emerging markets.

Heidingsfeld stated that the company’s ability to grow its supply was not keeping up with market demand and that credit intermediation had become a very important part of the process. He added that the company was doing everything that it could to expand quickly and keep up with growing demand.

In the past, those on the buy side of the market have tended to favor anonymized liquidity pools that didn’t require high levels of transparency. The increasing focus on execution quality amongst players across the market has however started to change this approach. Clients now expect to see a paper trail that proves that trades were achieved or attempted as per their instructions. Whilst it is taking a while for this attitude to spread through the entire market, Currency Investment Technologies is certainly in a good position to take full advantage of this trend.

Heidingsfeld shares this attitude, stating that transparency suits his company best. He stated, “‘we don’t care if somebody knows what we are doing – as a matter of fact, we are very happy if someone knows what we are doing, as long as it results in a better execution”.