Brian Andreyko, Chief Product Officer
Founded in 2009 as an FX broker, Edgewater Markets has emerged as a leading technology provider offering access to the FX markets globally via best of breed front to back-end software solutions and superior execution services. “Coupling execution services with technological advancement, we provide clients with a complete solution not offered by other providers,” says Brian Andreyko, CFA Chief Product Officer for Edgewater Markets. “Leading companies, particularly those in emerging markets, face challenges in three primary areas, technology, credit remediation, and distribution—the latter two being related. That’s where our compressive solutions can help.”
Over the last three years, Edgewater Markets’ technical development has accelerated, utilizing the latest in technological advancements with no legacy code. As a modern architecture, the technology adapts to provide each client their own experience, preserving unique workflows, trading applications, and pricing and hedging. Overlying data analysis and business intelligence into the pricing process, the solution automates workflows for clients to optimizes their trading, reducing errors, while increasing revenues with their existing client base. In addition, clients have the ability to expand their distribution and hedging capabilities by leveraging Edgewater Markets’ global footprint of over 350 leading financial institutions and automated switch bank workflows. “Our solution automates the process of credit remediation for difficult to access markets, as well as the conversion of local market currencies to global market NDFs. The expansion of liquidity and distribution provides significant risk reduction while increasing trade flows and profits,” mentions Andreyko.
He further cites some examples as to how Edgewater Markets has been helping several large banks and fund managers in Latin America to improve efficiency with existing clients, expand their reach, and reduce risk. “Latam markets are tricky, as they are closed to outside investors for currency trading, yet have global trade flows and significant offshore demand,” mentions Andreyko.
The currency trading process begins with the automation of onshore clients, liquidity providers, back office, and risk systems. These typically involve custom-built adaptors specific to each marketplace. In parallel, Edgewater Markets’ graphic designers custom build user interfaces for trading, sales, and clients, inclusive of branding, language, widget, and mobile builds. The solution rollout includes both internal and external stakeholders, automating a traditionally voice driven market,.
Edgewater Markets believes that trading in emerging markets is inefficient, constrained by both credit and technology. The facilitation of these aspects can significantly reduce risk and increase profitability for both onshore and offshore participants. Offshore participants that cannot trade the local currency directly utilize a non-deliverable forward. Edgewater Markets’ technology uploads and adjusts local market forward point curves and converts the spot rate in real-time to the forward rates. These rates are then distributed to offshore counterparties via direct credit lines, which are typically limited. That’s where clients can also leverage Edgewater Markets’ execution services. “Utilizing our prime brokerage arrangement and balance sheet, clients gain access to our global network of clients and liquidity providers,” mentions Andreyko. “Edgewater Markets sources liquidity and clients globally from their extensive network, intermediating trading, providing autonomy and trade settlement services. This expands global trade flows increasing profitability, while reducing overall systematic risk.”
What differentiates Edgewater Markets is the flexibility of its architecture that allows it to quickly and cost-effectively service each region, rather than forcing clients to adapt to product constraints. In addition, Edgewater Markets is a firm believer in having “boots on the ground”. “We invest in not only the technology but in relationships and are intimately familiar with local market requirements. When we decide to enter a marketplace, we go all in,” says Andreyko. “We also fully partner with our clients, and work with them to determine the pricing model that best fits their unique circumstance.”
Being a trusted provider of foreign exchange services with over 350+ global institutional clients, Edgewater Markets’ global footprint provides access to FX markets globally and entrance into pools of local liquidity that defines the ‘EDGE’ in the marketplace. As the company continues to add new marketplaces to its footprint and feature set, Andreyko expects to progress the offering to the Middle East and Africa. “We will continue to expand upon our Execution Services product line, providing additional credit facilitation and counterparty exposure and continue to add new product features, including pairs, tenors, and cryptocurrencies as required,” he concludes.