Published in both English and German in the January issue of TRADERS' Magazine
www.traders-mag.com

Solutions for growing IBs and emerging Forex companies: The Virtual Trading Desk (VTD)

Breakaway IBs (those IBs who are ready to become FCMs) and some smaller FCMs are facing a real challenge: they either cannot afford or don’t understand how to manage a professional trading desk. Kammas & Company of Murray Hill, New Jersey, has a genuine solution: the Virtual Trading Desk. The VTD receives positions from customers and then manages the risk for this new entity, according to pre-set parameters (no more deals going straight through to a larger clearing FCM). If the position grows too large, if predetermined targets are reached, or if unforeseen market volatility emerges, the risk is laid off. The VTD acts on behalf of the new entity through existing clearing relationships.

Unlike existing FX clearing banks and larger clearing FCMs who may face conflict of interest issues, Kammas is independent. It is that independence that assures that best efforts are being applied to bottom line results. The end result to breakaway IBs is that their per-deal revenue rises significantly above any fixed rebate they could have received as IBs. Through customized risk parameters and a proprietary dynamic hedging program, Kammas, and its staff of veteran FX bank traders, is fast becoming a leader in this specialized industry.

Dealing Desk
Management