Quotron Systems Inc, the Los Angeles-based subsidiary of Citicorp, has launched its bid for a share of the foreign exchange trading market. Computerisation of the market is currently dominated by Reuters’ Money Dealing Service, the other main player being Telerate with its The Trading Service. According to Quotron the market can easily support two systems and the company believes that even individual banks prefer to run two separate systems, reducing risks and encouraging competition by keeping their eggs in two baskets. One vendor, according to Quotron, will be squeezed – and the company predicts that its system will be happily co-existing with Reuters. Quotron’s system, called F/X Trader, is a global foreign exchange dealing system for the interbank market. The system encompasses front- and back-office requirements of the bank. At the front-end, the trader is provided with a monitor and a customised trading keyboard which are attached to a workstation, remotely if required, to reduce the space taken up on the desk. On-screen, the monitor displays six panels, which represent the six conversations a trader can be having with foreign counterparts at any one time. Also displayed is essential, constantly up-dated exchange rate information. Colour symbols on each panel are used to tell traders, who typically complete a deal within 10 seconds, where they are in a particular deal. Fixed format conversations, generated by single-touch function keys are used for dealing and there is also a free form facility for more flexible conversations. Quotron has chosen to split hardware between DEC and IBM, saying it chose the best machine for each part of the system. In the back-office, two DEC MicroVAX 3100s are used one of which is a back-up. The network, which will be private, allows for alternative routing if there is a communications failure. Details about each transaction are automatically transmitted to the MicroVAX and an electronic audit is kept of all messages sent through the network. At the front-end IBM’s PS/2s are used running OS/2. The system is still being tested by the 20 largest foreign exchange banks in London and New York and Quotron says it has letters of intent from 350 other banks. The system is expected to be available from June.
