The company’s goal is to have the real-time analytics platform be instrumental in reducing trading losses in fixed income, FX, and commodities.
London-based fintech firm Mosaic Data announced plans to launch a real-time analytics platform for the interest rate swap market. The company says the platform could help reduce trading losses and boost revenues for the market’s fixed income, foreign exchange, and commodities businesses.
Banks are seeking strategies to improve their FICC grades. The business has struggled, with revenues declining nearly 40% between 2010 and 2017, according to industry monitor Coalition.
Currently, over 20 banks and asset managers have expressed interest in the platform, and the company expects nearly a dozen more to sign in the near future.
“MSX Swaps allows sales and trading teams to answer questions in real time such as ‘Who are my most profitable clients?’ ‘Which ones aren’t trading with me as much as I would like them to?’ and ‘How can I win back their business?’” says Matthew Hodgson, chief executive and founder of Mosaic Data. “Answering these fundamental questions allows you to understand where you might want to increase your engagement with these clients because you might be missing valuable opportunities.”
Financial institutions have traditionally relied on historic analytics but Mosaic’s real-time insights can help them:
- Avoid losses
- Gain business
- Improve client activity
- Assist with risk management
- Improve and inform decision making
“MSX Swaps can also identify and flag up particularly unusual trades and alert the bank in real time. That means the bank can instantly spot ‘fat finger’ trades and other kinds of human error which could be exceptionally costly,” says Hodgson.