Delta Flow Product Factsheet
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Delta Flow™ Product Overview
Delta Flow™
Product
Factsheet
Page 1 of 16
Delta Flow™ Product Overview
Delta Flow™ from First Derivatives plc is the next generation in FX liquidity
aggregation, trading and risk management for brokers.
Delta Flow™ is an ecosystem built on the latest technology and brought you to by one of the world’s
foremost providers of services and products to the capital markets. Built by a combination of experts in FX
trading and data architects specialising in the design of high performance trading and market data systems,
Delta Flow™ has been engineered with the latest technology and deployed in the cloud following
collaboration with some of the biggest players in the market. We hope to explain to you why this combination
of the technology, the product and the pedigree of our company makes First Derivatives your ideal
technology partner in providing the best service to your clients and the greatest return to your shareholders.
Our philosophy during the creation and future development of Delta Flow™ is underpinned by the following
key principles;
Independence - We are an independent software provider and we do not wish to participate in the
market
Our model is bank friendly – our Liquidity Providers are crucial to the success of the initiative
We are customer focussed - we will work closely with our customers to react to the changing
environment in which they operate
Benefits sharing – we will strive to make any product enhancements, new features and technology and
process improvements available to all customers
Volume and Velocity – our underlying technology advantage is based on the amount of data we can
consume and the velocity which we can analyse and process it. We will continue to drive pure R+D in
the areas of high volume, low latency, high availability so that benefits will accrue to our customers
Deep Configurable Speedy on-boarding SAE16 Certified Rich Business
Liquidity Pools process hosting environment Intelligence Reporting
Page 2 of 16
Delta Flow™ Product Overview
Liquidity Management
The philosophy behind Delta Flow is predicated on providing all participants in Because of Delta’s ability to deal
the market with the tools to optimise their ability to service their customers. Our with more data at high speed we
liquidity management solution has been developed in close consultation with the can create deeper liquidity pools
users of our ecosystem. Delta Flow™ is built around liquidity pools, their than our competitors
creation, access, risk and credit controls around them. The schematic
representation below shows how we create diverse streams and pool of liquidity to create a series of mini-
ECNs which can be configured dynamically.
A liquidity pool is a collection of Liquidity Providers/market makers (of your choice) mapped into a defined
list of market takers (again your defined list of end clients). Delta Flow™ provides a mechanism for creating
multiple pools of liquidity targeted at specific audiences – retail client base, corporate users, high frequency
traders – the choice is yours.
Delta Flow™ allows you as the owner of the platform to act as the glue between the parties, creating liquidity
pools that you own, sourcing prices directly for liquidity providers that you have relationships with (as
opposed to anonymous ECN’s), allowing your credit partners/Prime Brokers direct access and offering your
clients with the best prices in the market.
Traders – Enabling users to take and manage risk on their own Book or STP.
Agency model – Allows owners to access the best prices available without taking risk, by passing all
executions to the liquidity providers.
Delta Flow™ also offers extensive administration capabilities on the platform allowing each element of the
process to be actively managed.
Each pool is controlled and managed independently, allowing the owner to configure client specific
mark-ups.
Delta Flow™ liquidity management enables owners to configure liquidity pools based on client
trading behaviour. With liquidity pools targeting specific client requirements you ensure an optimal
result.
Separate pools also allow for greater management of the trading behaviour and mapping to the
correct market makers to the takers they want to service – mapping HFT clients into market makers
offering retail prices will only disaffect your liquidity providers, and raise your reject rates.
Delta Flow™ is designed with the knowledge that Liquidity providers are critical to success. With
targeted pricing and low rejection rates comes more business. Allowing your liquidity providers to
directly target the client base they are after ensures they can offer you their best prices.
Page 3 of 16
Delta Flow™ Product Overview
By grouping similar types of end clients in unique liquidity pools Owners can efficiently and correctly match
the available liquidity sources with the trading profiles of end clients. Aggressive HFT feeds can be matched
with HFT specific feeds provided by liquidity Providers, Institutional clients can be matched with Intuitional
and Retail clients with retail feeds etc.
First Derivatives has relationships with all the majority Liquidity
Your Liquidity Providers Providers. We can facilitate introductions
Liquidity is your business. Having the best liquidity providers on the street connected to Delta Flow™
enables Owners to offer their clients consistently tight spreads and a deep pool of liquidity. We have
connections to a wide variety of Liquidity Providers ranging from the largest tier one banks through to
bespoke providers, offering unique regional pricing.
FX Connections
Bank Of America GTX/Gain
Barclays HSBC
Baxter JPMorgan
BNP Paribas Lucid
Cantor Morgan Stanley
CFH Markets Nomura
CIBC Rosental Collins Group
Citi RBS
Commerzbank SEB
Credit Suisse Société Générale
Currenex (FXCM) SolidFX
Deutsche Bank Standard Chartered Bank
GFT UBS
Goldman Sachs Virtu
GSA Xenfin
and many more
Critical to any business is ensuring that your partners feel they are part of the process and that they have
control over their product. Therefore Delta Flow provides a very flexible mechanism for Liquidity Providers to
offer SER, RFQ and RFSQ streaming rates into Delta Flow offering multiple streams with different
characteristics. This allows your Liquidity Providers to direct their streams to your target clients ensuring
higher deal acknowledgements, whilst giving you complete control over the process. In addition our unique
Business Intelligence and data mining capability allows you to work closely with your Makers to allow them to
be more competitive across markets and times.
Liquidity Pool Management
Delta Flow™ contains a series of
intuitive GUIs, configuration options
and reports that enable Owners to
manage and dynamically reconfigure
liquidity pools.
Page 4 of 16
Delta Flow™ Product Overview
Trading and Risk Management
Delta Flow™ offers trading capabilities over both FIX API and a Trading UI to cater for a variety of trading
profiles including High Frequency Trading, Institutional and Retail flow. Delta Flow™ supports Spot FX,
Forwards, NDFs, Precious Metals and Swaps trading both tenors and broken dates. Delta Flow™ supports
all common order types, including Limit, Stop and One-Cancels-Other (OCO) orders for a variety of Time In
Force options. Post trade allocations and netting options are also available.
Liquidity View and One Click Trading
The Liquidity View and One Click Trading screens provide a number of powerful tools allowing Owners to
trade and manage your warehoused risk.
One Click Trading: Allows you to see the depth of pricing and execute trades on your own book
Top of Book Ticker: Real-time view of the best Bid and Offer rates by currency pair
Order Blotter: Real-time update of all orders
Order Entry: Ability to enter complex orders
Position Blotter: Real-time view of all positions by value date
Delta Flow™ provides position blotters to view positions reported in the Owner’s specified currency, and by
currency pair. The positions blotter shows the running positions for each currency pair along with the
associated profit or loss.
Page 5 of 16
Delta Flow™ Product Overview
FIX Trading API
For your internal trading systems, or clients that want to connect to you we offer an industry standard FIX
Trading API. Based on the FIX Protocol standard it allows you or your clients to access the liquidity pools
that you have defined for them. The FIX Trading API can be easily configured to get clients on-boarded
quickly.
Delta Flow™ offers connectivity to Traiana (both Harmony and Netlink), MarkitServ, RTNS and Elysium
Technology Group for settlement and reconciliation purposes and a Drop Copy FIX API for connecting
directly to back office systems.
Managing Risk – The Warehouse
Delta Flow™ provides Smart Order Routing functionality that supports sweeping and dynamic price
replacement. Delta Flow™ also provides flexible configuration to either STP trades to the liquidity provider,
or warehouse trades into their own B-Book. The decision to STP or Warehouse is managed within the
warehouse configuration rules. Rules around whether to STP or Warehouse trades include Order size, Client
and Time of execution. Delta Flow™ Warehouse rules also enables a maximum risk limit to be set against
each currency.
Additional trade netting functionality allows offsetting of matched client trades enabling the bid/offer
spread to be captured thus reducing the underlying trade risk and processing costs.
Institutional Trading UI
The Delta Flow™ offering comes with a sophisticated and intuitive user interface, which has been developed
over many years in conjunction with the feedback and ever changing functional requirements of our clients in
this fast paced changing market place.
Delta Flow™ also supports design customisation to allow for white label branding and personalisation of the
trading UI. Most clients will include their logo as a minimum.
The Delta Flow™ trading UI has been designed with all users in mind, from end traders to internal prop
desks and Sales traders who require the ability to trade on-behalf of their accounts.
Page 6 of 16
Delta Flow™ Product Overview
Credit Management
Delta Flow™ provides Banks and Prime Brokers with the ability to define and monitor credit risk across
counterparties from a single view. Delta Flow™ enables changes to be applied in real-time thereby offering a
swift response to changing market conditions or new client information. Credit lines can be extended or
reduced to zero instantly suspending all further trading. With volatile markets and a wide assortment of bi-
lateral relationships, credit management, risk and control it is critical to ensure credit lines are optimised.
Delta Flow™ Credit managers can view and control exposure based on the following models:
Bank/broker: Overall limits based on gross/net open positions and on a daily basis.
Liquidity provider: Limits on the exposure to individual liquidity providers or across all liquidity
providers.
Client/Taker limit: Limits on the exposures to clients/takers, this is particularly important in high
frequency trading arena.
Account/Sub account: Limits on the exposures of client’s accounts.
To satisfy varying regulatory requirements it is possible to specify either Gross or Net exposures per client
along with alerting and stop trading levels to further control the trading exposure. Alerts provide advance
warning of adverse exposure levels while a breach of the stop trading limits ceases all further trading with
that counterparty. Delta Flow™ offers the ability to define limits on Clients and Liquidity Providers.
An exposure blotter provides real time mark-to-mark exposure against clients. Breaches are notified by email
or popup and stored to logs for audit and compliance purposes. This information provides a valuable source
for performing client credit analysis and credit utilisation.
Page 7 of 16
Delta Flow™ Product Overview
We have also partnered with leading companies Traiana and Elysium to provide direct connectivity to all of
the major Prime Brokers directly though Delta Flow™.
Business Intelligence
Built upon kdb+ technology Delta Flow™ offers unparalleled levels of performance and scalability for
capturing and processing data. Tick-by-tick data is stored on prices, spreads, orders and fill ratios, creating
dashboard views and analytics capabilities producing an unrivalled insight into how the business is
performing and how it can be improved.
A unique feature of Delta Flow™ is its market leading kdb+ database storing tick by tick data on rates, orders
and trades. This data coupled with the dashboard functionality within Delta Flow enables business users to
monitor, analyse and profile their business performance.
Business Intelligence can be used to;
Review price stream performance, including spreads and coverage by time
Analyse ACK/NACK ratios and improve credit relationships
Analyse client trading patterns and volumes
Assist in pricing and warehousing decisions
Optimise liquidity and pool management
Improve credit risk management
The reports allow visualisation, filtering and drilldowns in a number of intuitive formats. Chart types
supported include: heat maps, pie charts, bubble charts and time series graphs.
All Delta Flow™ Business Intelligence reports are interactive, allowing users to zoom, select and filter dates
for a specified range.
Page 8 of 16
Delta Flow™ Product Overview
Business Intelligence
Business Intelligence Reports
Price Takers
Volumes traded by Symbol / P&L / Time
Analyse historical data over different time frames and client pools
Warehoused v Outsourced
Live and Daily Average spreads To analyse different symbol lists, client pools and depth of liquidity.
To review and optimise the credit utilisation of all takers on the system
Credit Utilisation by date or by time
historically over different time windows and for different client pools
Rates and Pricing
Pricing Snapshot by Pool or by Stream
Pricing Time-Series View average price and deviation of quotes over different time
for windows/symbols and client pools
Live and Daily Average spreads
Page 9 of 16
Delta Flow™ Product Overview
Clients Transactions
All maker, taker and owner transactions that can be viewed by
Transactions Details different time windows, symbols, client pools and their takers
and with filtering options down to transaction level
Provides information on the profit and maker/taker volume per
Profit and Volume symbol or client pool for outsourced/warehoused trades and is
configurable over different time windows.
Trading Profile
Volumes by Symbol / Pool / Stream, Views by maker or taker. They can also be shown over different
Vol comparisons, Rank/Vol/%Vol time windows and filtered by symbols and client pools.
Can be viewed in graphical or grid format and are configurable
Ack Nack Total / Nack ratio / Ack Nack
over different time windows and can be filtered by client pools
by Frequency / % Nack by Volume
and symbols
Delta Flow™ Business Intelligence reports are also exportable to Excel for further manipulation.
Page 10 of 16Delta Flow™ Product Overview
Delta Margin
For retail, HNWI and other non-institutional clients, Delta Flow offers a complementary Margin Trading
module where counterparty exposure is marked to market against posted client collateral.
Delta Margin enables banks and brokers to provide trading capabilities to clients with the corresponding
exposure secured against collateral deposited with them. The solution is designed for seamless integration
with executable streaming rates and order management to provide a comprehensive web-enabled trading
suite to the end-client trader. This system combines a powerful revaluation engine, margin calculator, margin
monitor and collateral manager, to give a fully integrated solution for margin trading.
Delta Margin’s Exposure Blotter allows you to view the components used to calculate your free margin
availability and view the margin breakdown in amount and percentage terms. You can also manually
withdraw collateral through the user interface.
The platform provides a comprehensive reporting facility, including Account Statements, Collateral,
Transaction and Deposit History.
Margin Statistics
The following statistics can be viewed both in real-time and historical mode.
Cash Balance: This field displays the sum of deposits, withdrawals, transaction fees, funding and
realised P&L from previous days.
Daily Realised PL: This is the realised P&L as a result of intra-day trading. At the end of day Daily
Realised P&L is moved to cash and therefore resets to zero daily. You can expand the Realised P&L
item to View Components of Realised P&L that contribute to the P&L figure.
Net Collateral: This is the sum of your Cash Balance and Daily Realised P&L.
Free Margin: This is your Equity minus Margin Used.
Margin Used: This is the sum of the Margin used on all open non hedge trades.
MTM: This is the MTM on all open trades
Margin Coverage: This is your Margin Coverage shown as a percentage. Margin Coverage is
calculated as Equity divided by Margin Used.
Margin Call Level: This is the level at which margin will be called if Margin Coverage reaches this
level.
Close Out Level: This is the level at which you will be closed out if Margin Coverage reaches this
level.
Page 11 of 16Delta Flow™ Product Overview
Platform
The Delta Flow™ platform is designed for scale and speed. Like other Delta applications, Delta applications
are powered by kdb+, a database technology used by the world's largest banks, hedge funds and
exchanges. Kdb+ is implemented by the First Derivatives professional services team to manage the trading,
risk and regulatory challenges associated with the exponential increase in market data in recent years. In
practical terms this speed and scalability delivers competitive advantages to brokers and their customers
using the platform. These advantages include:
More LPs providing dedicated streams means tighter pricing and greater depth;
Lower latency increases fill rates;
More timely calculations means better market and credit risk management
Handling more data provides valuable Business Intelligence.
Why not build a solution?
We provide the hardware and storage
Partnering with First Derivatives using Delta Flow allows brokers to
We manage the data centre focus on providing a premium service to clients while letting us take
We develop and manage the connectivity to care of the technology aspect of your business requirements.
LPs
We are co-located with LPs the world's top
data centres in New York, Tokyo and
Delta Flow is a multi-tenanted hosted platform. The Total Cost of
Chicago Ownership using this model is substantially lower than building, managing
We continually review and upgrade our and upgrading your own technology solution. Our platform and our
technology stack so that we keep abreast services team deliver substantial savings in otherwise prohibitive
and take advantage of innovations and new
breakthroughs on the technology front.
technology and personnel costs.
Our software is designed for localisation
and has been implemented in Japanese
and Arabic
Our product can be white labeled to
promote your brand or to allow you to
launch multiple brands in different markets
We have a number of ready built bridges
such as MT4 plus drop copy services to Post Go Live
Traiana, Elyssium, RTNS, ETG and
MarkitServ
Our solution meets the highest and most Post Go Live
rigorous industry standards and is SSAE16
certified Go Live New product features, reports and
We provide full connectivity to systems such enhancements are seamlessly
as MetaQuotes – MetaTrader™ platform, C- added as part of a regular release
Go Live
Trader cycle.
We provide a demo system to allow you We work continuously with your API
to onboard API clients and to integrate customers and technology partners
your downstream systems in a to keep your applications up to date
controlled manner We have a world class monitoring
Build v Buy We bear much of the cost of regulation. and alerts system (Delta Monitoring)
We are SEF registered and our clients in place to ensure the stability and
use our solution for regulatory reporting efficiency of our system. We
for regional bodies such as NFA, CFTC, monitor and dynamically manage
FINMA, SFC and FSA resources such as CPU, memory,
Parameters such as markups and storage, external connections and
pool/stream setups can be dynamically processes to ensure that even
reconfigured during times of excessive market
Configuration of parameters such as volatility your operations continue to
markups is straightforward and live run smoothly.
trading can begin on Delta Flow within Our Business Development team
hours of the decision to switch works with you as your business
grows by liaising with partners and
LPs in centres such as New York,
London and Tokyo
Page 12 of 16Delta Flow™ Product Overview
Additional Platform benefits:
Hosting Environment
“Best of Breed” approach in selection of IT solution HW & Providers including Data Centre
hosting partners.
Equinix NY4 (Tier 4 provider) currently the default global Data Centre hosting partner for FD
production with provision of 24*7 onsite “smart hands” resources to support ongoing
maintenance & upgrades.
Configuration includes Disaster Recovery/Business Continuity Planning site.
Data Centre delivers 5*9s SLA in power, AC, network & hosting pace.
High availability clustered/redundant solutions with resilient fail over implemented at the core
network, internet & firewalls layers.
High availability clustered/redundant solutions with resilient fail over implemented at the server
/system layer across LP, Application, DB, FIX and Web tiers.
Delta Mon-proprietary Delta monitoring application across server resources and internal DF
processes.
Delta Flow Alert – messaging system and alert generation.
Enterprise-wide IT infra monitoring platform.
Ultra low latent market data and order execution speed
Delta Flow™ provides key attributes that provide an ultra low latent environment:
Ultra low latency connections - Liquidity providers
and clients are linked via fibre/copper cross All of these attributes enables rates to
connections and collocation in data centres. be delivered and deal flow returned
Streamlined application structure– Delta Flow™ is with the lowest possible latency. This
coded with delivery and speed as critical helps to reduce levels of trade
requirements. The application has been build to rejections caused by Liquidity
parallel process all rate checks, mark-ups and risk Provider rates updating during the
management features to avoid any unnecessary time it takes from deals to flow from
processing which could delay rate or deal the provider through to Delta Flow™,
transmission reach the client and then to be
High speed architecture – Delta Flow™ is written returned to the provider. If the round
in Delta’s native q language and run in-memory to trip time for rates and deal flow is
allow for extremely fast and efficient processing of greater than the frequency between
very large amounts of data updates then chances of trade
Very high LP & network carrier density provides rejections are increased.
increased flexibility & superior lead-time in
connection of Colo’d & Non-colo’d Makers/Takers
IT Security & Compliance
Defence in Depth philosophy & approach to IT Security.
Enforcing Governance & Compliance with respect to maintaining Data Centre SSAE16
accreditation, physical & logical controls including – monitored secure access, change & patch
mgmt., data backup & archive, sandboxing, physical & logical segregation etc.
Maintain alignment with Industry standards – ISO27001.
Security Incident Management protocol.
Deploy, support & monitor SIEM (Security Info & Event Mgmt system which includes –real-time
HIDS & NIDS monitoring & logging, clustered redundant firewalls & DDoS protection.
Regular UAM audits, vulnerability & penetration scans.
Page 13 of 16Delta Flow™ Product Overview
OUR TEAM
We have assembled a large team of battle hardened professionals with deep technical and domain
knowledge who have worked with the world’s leading banks, brokers and exchanges. The team has been
organized into specialist units dedicated to driving our product roadmap and to provide a premium support
service to our clients;
Page 14 of 16Delta Flow™ Product Overview
First Derivatives Corporate
First Derivatives plc (“FD”) is a leading provider of software solutions and consulting services to the capital
markets industry. Founded in 1996, FD occupies a niche market position in terms of deep domain
knowledge and technical expertise. Headquartered in Ireland, FD has a global presence with offices across
EMEA, the Americas and Asia Pacific.
Publically held company on London Stock Exchange (LSE FDP.L)
Headquartered in Newry, Co. Down, N Ireland
1000+ employees worldwide
Consulting Services
Multi Vendor Services – Calypso, Murex, Wall Street, Summit, Opics…
Legal, Regulatory and Compliance
Data Management
Software Development
Big Data and Data Science
Big Data Solutions
Delta Flow/Delta Flow+ – Foreign Exchange Trading
Delta Algo – Low latency trading strategies and execution
Delta Surveillance – For Regulators, Exchange and Brokers
Delta Data Factory – Market and Reference Data Management
Delta Stream – High Volume data capture, analysis and distribution
... powered by kdb+ and other Big Data technologies
Page 15 of 16Delta Flow™ Product Overview
Delta Suite
Delta is a powerful “Big Data” platform, offering capabilities in reference data management, market data
management, CEP, algorithmic and high-frequency trading, FX trading, treasury risk management and
exchange management surveillance.
Deployed in some of the world’s largest banks, exchanges and hedge funds, Delta applications are designed
for “Volume and Velocity” – low-latency, high-throughput applications delivered as a hosted service or
deployed locally.
FD provides a range of brochures on its products and services. For more information please contact us via
our website or the numbers below
Contact Us
New York +1 (212) 447-6700
Europe +44 (28) 302 52242
Asia-Pacific +61 2 9477 0200
info@firstderivatives.com
www.firstderivatives.com
This information is subject to change without
notice and is offered for information purposes only.
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