CAX Overview

Advantages of the CAX Aggregation Model

CAX provides the following advantages to our institutional clients. Click on each of the items below for a brief description.

• Multi-Portal and Multi-Bank FX Aggregator
• Private Liquidity Pool
• Best bid/offer
• Tighter spreads ("Choice Markets")
• Aggregated & Centralized Liquidity
• Anonymity
• Reduced transaction costs
• Economies of Scale
• Increased trading efficiency with one interface
• Limited to no "last look" provisions
• Internal Matching & Proprietary Order Routing
• Reduction of phantom liquidity
• Equal Liquidity and Price Broadcasting
• Customization of Liquidity Providers
• CAX API
• CAX GUI
• Smart order routing capabilities
• High-Speed Technology & State-of-the-Art Data Center
• Plug-&-play Hosted Solution

Multi-Portal and Multi-Bank FX Aggregator

CAX is a multi-portal and multi-bank aggregator that aggregates 4 major portals, 3 top-tier direct bank feeds and several large proprietary trading groups, third party consortiums and hedge funds.

Private Liquidity Pool

Due to the sophisticated nature of our clients and their needs, vCap FX pre-qualifies each potential CAX candidate through extensive due diligence in order to insure the best possible fit between the candidate and the CAX counterparties. We strive to ensure that all "predatory" participants are filtered out of the CAX environment due to the detrimental effects that their particular trading style may have on the CAX and the liquidity providers that feed the CAX . By implementing this filtering mechanism, CAX users benefit in that it gives banks and FX liquidity providers alike an incentive to provide more liquidity and tighter spreads to the CAX in exchange for non-predatory and increased order flow.

Best bid/offer

Since CAX aggregates various FX liquidity sources, CAX users will be able to see best/bid offer (major currency pairs only) broadcasted by the liquidity providers that provide pricing and liquidity to the CAX.

Tighter Spreads ("Choice" Markets)

The CAX aggregation model and internal matching engine provides tighter spreads and higher propensity to see "choice" markets on major currency pairs.

Aggregated & Centralized Liquidity

CAX aggregates all liquidity broadcasted by each of the liquidity providers under each corresponding bid/offer which results in aggregated liquidity that is substantially greater than any one FX portal or bank.

Anonymity

CAX users can execute day-to-day currency flows without revealing their position or identity.

Reduced transaction costs

Through FX aggregation, best bid/offer capabilities, tighter spreads, and aggregated liquidity, CAX users will achieve an overall reduction in transaction costs, enabling traders to optimize their trading objectives and goals.

Economies of scale

By participating in an aggregated pool, CAX users can leverage economies of scale by trading along side other CAX users and utilizing the CAX's ability to tap into customer liquidity of the direct banks and various portals that feed the CAX.

Increased trading efficiency with one interface

By using CAX, users no longer need multiple portals/GUIs (i.e. HotSpot, Lava, Currenex) on their desktop. CAX aggregates the functionality, pricing and liquidity all under one GUI without needing increased staff to manage all the various API/GUI connections. CAX users trade on one interface (API Black Box or GUI) and open one account with vCap FX. No separate prime brokerage accounts or back-office infrastructure is needed.

Limited to no "last look provisions"

Due to the aggregation and internal matching advantages of the CAX, we are able to provide our clients with limited to no "last look provision". It is a known fact that various banks and portals may have limited "last look provisions" where by they having a waiting period of several hundred milliseconds to several seconds before doing a deal with a particular account or trader. In the algorithmic trading world, milliseconds can be an eternity. By aggregating the various liquidity sources, last look provisions of banks and portals are minimized and in the case of internally matched trades, the last look provision is zero.

Internal Matching Engine & Proprietary Order Routing

CAX internally matches trades between all CAX users and liquidity providers, which in turn provides better price discovery, greater liquidity and results in faster response times and order confirmations to the end user.

Reduction of phantom liquidity

The CAX aggregation model reduces the propensity of phantom liquidity and pricing that is broadcasted to the various FX liquidity providers.

Equal Liquidity and Price Broadcasting

Each CAX user does not receive individual liquidity and pricing. All CAX Users will see the same price, spread and liquidity across the various liquidity providers.

Customization of Liquidity Providers

CAX has the ability to customize liquidity sources on an individual user basis to accommodate various trading strategies.

CAX API

CAX offers easy access to FIX Connections for algorithmic, black box and automated traders. By connecting to the CAX API, you can reduce the technology constraints of having to connect into multiple banks and ECNs into an internally developed black-box system. CAX has a programming team that can provide technology assistance to your institution in getting connected to the CAX API. For API specs (C++), please send an email request to sales@vcap.com.

CAX GUI

CAX is front-end "agnostic" and currently offers multiple GUI solutions with ChoiceFX as its primary interface.

ChoiceFX offers robust stop-loss functionality, stop-limit order manipulation, historical price data, market, limit and 3 distinct types of stop orders, as well as trailing stop functionality, an ability to trade one currency at a time or a number of them, ability to view charts and news to be enable a user to make more informed decisions; numerous ways to look at the account data, such as currency exposure, open order, pending orders, as well as others and back-office tools. ChoiceFX is also MetaTrader & MetaQuotes price gateway ready.

Smart order routing capabilities

The API and GUI solutions provide for smart order routing capabilities and market depth. Please contact your vCap FX representative for detailed order routing specifications.

High-Speed Technology & State-of-the-Art Data Center

CAX has direct fiber connections into all the major ECNs and banks and collocates near its liquidity provider's data sources to ensure sub-millisecond response times for the algorithmic traders.

Plug-&-Play Hosted Solution

CAX provides for one server connection that connects into multiple liquidity sources. CAX is a "plug-&-play" hosted solution for institutional and algorithmic FOREX traders in that CAX manages all of the connectivity constraints for end users without having to create separation connections into each portal, bank and liquidity provider. CAX also manages all the vital relationships between the liquidity providers and the prime broker to resolve issues in a timely and equitable manner and ensure a seamless turnkey process. On-site deployment is available for select CAX users.

Benefits For FCMs, Broker-Dealers & Banks.

• Provides ability to augment current liquidity providers for their retail clients and provide an institutional product offering for their institutional client base.
• Allows institutions to offset large order flow from proprietary trading groups, hedge funds and corporate customers, increases internal order flow for internal proprietary trading departments and minimizes undesired predatory flow.
• Plug-&-play back office system that acts as a full-service accounting application that can enable the client to setup new or update existing accounts on the system, to run daily reconciliations, to generate various reports and statistics, run online reporting and perform risk management functions.