Institutionally analysed,
systematically developed.
The quality of institutional FX Execution depends on the transparent analysis of existing trading structures and their systematic development into a robust target framework.
Analysis of the existing execution structure
Analysis of existing trading processes
7orca analyses existing order and trading processes as well as operational interfaces across the entire execution chain. The objective is to identify operational inefficiencies and opportunities for optimisation.
Analysis selected instruments
The selected instruments are assessed in terms of liquidity, strategic suitability, cost structure and operational implementation.
Analysis of broker and pricing structures
7orca analyses broker setups, quality of pricing, spread costs, execution channels and potential opportunities for optimising the trading structure.
Assessment of execution quality
Execution quality is assessed using benchmark analyses and transaction cost analyses.
Analysis of operational processes
The analysis extends beyond execution itself to include matching, settlement, reconciliation and reporting processes.
Identification of optimisation potential
The results are translated into concrete measures – such as improving pricing, optimising execution channels or reducing operational complexity.
Execution setup: a robust framework for trading processes.
Based on the analysis, an institutional execution setup is defined. It combines trading logic, instrument selection, broker architecture, contractual integration, liquidity management and operational processes into a coherent execution framework.
Building blocks of the execution setup
Execution setup analysis
The starting point is a structured analysis of existing trading processes, order flows, cost structures, execution channels and operational workflows.
Target execution setup
The target execution set up defines the future trading and execution framework, including suitable instruments, execution channels and processes.
Contractual framework
Depending on the execution structure, contractual frameworks such as ISDA, CSAs or give-up agreements may be required. The necessary coordination is carried out with all relevant counterparties within an institutional framework.
Trading and broker architecture
7orca supports the definition and integration of a robust multi-broker approach as well as the integration of suitable trading and routing structures.
Collateral and liquidity
Margin, collateral and liquidity requirements are incorporated at the setup stage and integrated into existing processes.
Implementation and go-live
Go-live includes technical and operational integration, testing and the transition to ongoing trade management.
Institutional market access and structured execution channels.
Institutional FX Execution requires the consistent integration of instrument, execution channel, liquidity and operational processing.
7orca can integrate different OTC and exchange-traded products as well as various execution methods into the trading structure.
Instruments and execution methods
OTC products
FX spot, FX forward, FX swap, NDF, NDF swap and FX options can be integrated into institutional trading processes.
Exchange-traded products
Exchange-traded products include FX futures, EFPs and exchange-traded FX options.
RFQ
An RFQ requests competing quotes from multiple liquidity providers to achieve competitive pricing.
Algo execution
Algorithmic execution is used to reduce market impact and timing risks.
Fixing trades
Fixing trades enable execution at predefined reference rates and specified times.
Order book
Exchange-traded instruments are executed through central order books using market or limit orders.
Integrated collateral and liquidity management.
Institutional FX Execution encompasses not only trade execution itself, but also margining, collateral and liquidity processes.
Contractual frameworks such as ISDA/CSA or the German Master Agreement with a collateral annex form the basis of the collateral management. Relevant processes include daily mark-to-market valuations, aggregation of net exposures by counterparty and calculation of variation margin requirements.
Collateral and liquidity management
Mark-to-market valuation and exposure measurement
Daily margin calculations are based on the mark-to-market valuation of derivative positions using current market prices.
Variation margin
Variation margin is derived from the difference between exposure and existing collateral.
Cash and securities as collateral
Depending on the structure, cash or securities may be used as collateral.
Threshold and Minimum Transfer Amount
Thresholds and Minimum Transfer Amounts can reduce the number of operational collateral transfers.
Liquidity planning
Liquidity planning and Cash-Flow-at-Risk analyses support the management of future liquidity requirements.
Reporting and control
Collateral movements and margining processes are documented, reconciled and monitored.
Trade management across the institutional trading lifecycle.
Operational implementation is based on standardised order templates, clearly defined workflows and structured system integration.
Trade management
Order templates
Standardised templates enable structured and efficient order transmission for OTC and listed products.
Order validation
Order parameters are validated for completeness and consistency.
System integration
Trading instructions are integrated into existing portfolio management and trading systems.
Trade routing
Orders are routed to relevant trading platforms and brokers.
Trade execution
Trade execution follows Best Execution principles.
Post-trade processing
Post-trade processing includes matching, trade confirmation, settlement preparation and other operational processing activities.
Post-trade processes and reconciliation.
Following execution, the quality of post-trade processing determines stability, transparency and operational resilience.
7orca integrates trade capture, matching, confirmation, settlement and reconciliation into a structured post-trade process.
Post-trade processes
Trade capture and allocation
Trade data are allocated to the relevant mandates and portfolios for further processing.
Trade matching
Transactions are matched with the relevant (counter)parties and systems.
Trade confirmation
Trade confirmations are generated and sent to the relevant parties.
Settlement
Settlement is carried out on the basis of confirmed trades and defined settlement processes.
Reconciliation
FX positions and cash flows are reconciled and reviewed and monitored between the relevant parties.
Ongoing management and counterparty coordination.
Institutional FX Execution extends beyond trade execution. Effective execution requires the ongoing management of liquidity, counterparties, execution quality and operational processes.
Ongoing management
Liquidity management
Liquidity management incorporates funding structures, valuation logic and anticipated cash flow requirements.
Cashflow-at-risk
Cashflow-at-risk analyses support liquidity planning by quantifying future liquidity requirements.
Counterparty management
7orca supports panel management, broker due diligence, credit monitoring and ongoing assessment of execution quality.
Monitoring of counterparty risks
Ratings and credit default swaps are monitored on an ongoing basis and incorporated into broker management.
Panel management and optimisation
Ongoing dialogue with counterparties supports the continuous improvement of market access and pricing structures.
Execution oversight: transparency at every stage.
Execution oversight combines transaction cost analysis, audit trail, governance and reporting into an integrated control and transparency framework.
The objective is to provide a transparent and robust assessment of execution quality.
Execution oversight
Transaction cost analysis
TCA analyses assess spread costs, market impact and execution quality.
Audit trail
The transaction history is fully traceable throughout the entire processing workflow.
Governance
Execution oversight facilitates the integration of FX Execution into existing control and governance structures.
Reporting
Client-specific data can be provided on an ad hoc, daily, weekly or monthly basis.