Local Market Pricing Engine (LMPE)

Trading global markets in local currencies with enhanced liquidity and pricing

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What is LMPE?

The Local Market Pricing Engine (LMPE) is Touch-Fire's advanced solution for creating virtual marketplaces that allow trading of international instruments in local currencies. This innovative technology combines cross-currency conversion with order matching to present seamless trading experiences for local participants.

How It Works

The LMPE creates virtual order books by applying real-time FX conversion to existing order books from global markets. This allows traders to see and trade using their local currency while the system automatically handles the currency conversion and hedging in the background.

Key Benefits

Simplified Local Trading: Traders can participate in global markets without managing currency conversion
Enhanced Liquidity: Combines liquidity from multiple sources into a single virtual order book
Reduced Foreign Exchange Risk: Automatic hedging of currency exposure
Multi-Market Integration: Connect Malaysian, Thai, and global markets with local currency pricing

LMPE Features

Real-time FX Conversion

Applies up-to-the-millisecond currency conversion to create virtual order books accessible in local currency.

Multi-Market Aggregation

Combines liquidity from multiple global sources into a single virtual order book, enhancing depth and tightening spreads.

Automatic Hedging

Implements sophisticated hedging strategies to manage FX risk exposure for market operators.

Customizable Pricing Model

Flexible configuration of spreads, markups, and conversion rates to optimize profitability.

Implementation Examples

Malaysian Local Market

Retail Access to Global Markets

Problem: Broker needed to offer USD-denominated products in local currency.

Solution: Virtual MYR order books for key US futures; real-time FX conversion and automatic hedging.

Benefit: Retail could trade global markets directly in MYR; +45% trading volume within three months.

Technical Architecture

The LMPE is built on our high-performance event-driven architecture with specialized components for FX conversion and order matching.

Real-time Order Book Management: Maintains synchronized virtual order books with sub-millisecond updates
FX Rate Service: Connects to multiple liquidity providers for optimal FX rates
Risk Management Engine: Real-time monitoring and management of currency exposure
Hedging Automaton: Configurable rules-based system for automated hedging strategies

Learn about our architecture

Ready to bring global markets to your local traders?

Contact us to discuss how the Local Market Pricing Engine can help your business expand its offerings and provide better service to your clients.

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