CalPERS Selects LavaFX Product Suite for Foreign Exchange Trading.SACRAMENTO, Calif. and NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- The California Public Employees' Retirement System (CalPERS), and Lava Trading Inc., the innovative technology firm that develops high-performance trading solutions for the financial services industry, today announced that CalPERS has selected the LavaFX[R] product suite for foreign exchange trading Foreign Exchange Trading or FX Trading, clients are able to hedge against, or speculate upon, changes in the exchange rate of two currencies. For example, a speculator can long EUR/USD in foreign exchange market in order to profit from capturing the appreciation of Euro against the . CalPERS will use the platform to execute trades in its new Active Currency Overlay Currency Overlay The outsourcing of currency risk management to a specialist firm, known as the overlay manager. This is used in international investment portfolios to separate the management of currency risk from the asset allocation and security selection decisions of the Portfolio, as well as in other internal portfolios. Built upon Lava's leading, proprietary technology core, LavaFX provides a premier offering in electronic foreign exchange trading that is transforming the FX marketplace. It provides a Central Limit Order Book of live dealable prices, full price transparency Price Transparency The accessibility of information on the order flow for a particular stock, allowing knowledge of the quantities of stock being offered and the bids at the various price levels. Also referred to as "market depth. and depth of book, and the ability to place bids and offers, together with Lava's sophisticated order types. The system aggregates multiple sources of FX liquidity into a single access point, which can be tapped via the fast, intuitive LavaFX user interface, or through a FIX API. In September, Lava announced the addition of a significant new algorithmic trading Algorithmic Trading A trading system that utilizes very advanced mathematical models for making transaction decisions in the financial markets. The strict rules built into the model attempt to determine the optimal time for an order to be placed that will cause the least amount of feature to the LavaFX platform. It allows foreign exchange traders to execute orders over time, with minimal market notice or impact, by sending pieces of a master order into the market at specified intervals. "We are very pleased to add LavaFX to CalPERS' order execution system," said Eric Busay, Portfolio Manager in Global Fixed Income, CalPERS. "With LavaFX, we'll be able to place standing orders, and importantly, time slice orders, as needed as needed prn. See prn order. . By providing direct access to the foreign exchange markets, and allowing us to be a liquidity provider or price taker Price Taker 1. An investor whose buying or selling transactions are assumed to have no effect on the market. 2. A firm that can alter its rate of production and sales without significantly affecting the market price of its product. Notes: 1. , we are confident Lava will result in improved FX trading; transforming those who require liquidity into liquidity providers." "The Lava platform adds another dimension to our currency execution," adds Investment Officer Jonathon O'Donnell. "We execute FX trades for internal CalPERS' units as well as our passive and active currency overlay programs. Some orders come in with short notice. Lava will allow us to strategize, to focus on what needs to be done, when, in what currency and automate the process." Omid Rezania, another member of the currency team who has been focusing on quantitative currency strategies has been keen on algorithmic strategies. "We expect Lava will be the platform that can respond to the highly time sensitive demands." "We welcome CalPERS to the family of leading organizations using LavaFX," said David Ogg, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , LavaFX. "We expect CalPERS will realize significant benefit from the increased trading efficiency, greater pricing transparency and aggregation of disparate FX execution venues, LavaFX provides. In addition, our new algorithmic trading capabilities should prove especially useful, allowing CalPERS to move large orders through the market with minimal disruption." About CalPERS CalPERS is the nation's largest public pension fund with assets totaling more than $225 billion. The System provides retirement and health benefits to approximately 1.5 million State and local public employees and their families. For more information about CalPERS, visit www.calpers.ca.gov. About Lava Trading Inc. Headquartered in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , with locations in California, Connecticut and the United Kingdom, Lava Trading Inc. is an innovative technology firm that develops high-performance trading solutions for the financial services industry. Lava products are created as true ASP solutions built to withstand maximum volumes in the most volatile conditions. As a cost effective and neutral provider, Lava's OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). , Listed and Foreign Exchange solutions are used by leading broker/dealers, including most of the top U.S. investment banks, as well as market makers, hedge funds and institutional investors. With its patented technology and capital markets expertise, Lava creates value-added trading solutions that combine speed, intelligence and reliability. Lava is a subsidiary of Citigroup Inc. (NYSE NYSE See: New York Stock Exchange : C) and member NASD/SIPC. For more information, visit www.lavatrading.com. |
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