Avenue Securities, a U.S. digital brokerage serving retail investors in Brazil, has tapped trading technology provider Sterling Trading Tech (STT) to offer Brazilian investors sophisticated trading tools and functionality to trade the U.S. markets.
The Miami-based broker was founded in 2018 and has dedicated itself to Brazilian investments abroad, having grown into the largest broker-dealer in the U.S. for Brazilians: more than 600,000 Brazilian investors in the United States trading through Avenue.
The partnership with STT includes access two three product lines: Trading platforms (via web and mobile access), order management systems (OMS), and the post-trade Risk and Margin system.
In addition, Avenue will be able to fully integrate U.S. equities into their backend infrastructure for order routing and risk capabilities. The firm announced that options trading will be available soon.
Alexandre Artmann, Chief Operating Officer for Avenue, said: “To unlock the full potential of the U.S. market for Brazilian investors, we knew we needed to find a fully integrated solution. Sterling’s cutting-edge technology and unparalleled reputation drew us to the firm, and we’re excited for this partnership to take our U.S. equities offering to the next level.”
Andrew Actman, Managing Director of Business Development at STT, added: “We designed the Sterling ecosystem to cover the full trade lifecycle. We’re pleased to help Avenue expand their business and their offering to investors through our suite of solutions needed for them to fully participate in the U.S. market.”
Sterling’s products power many of the world’s leading brokers, clearing firms and investment managers. Its white labeled trading platforms allow clients to create an integrated platform ecosystem that is tailored to their needs. The Sterling OMS includes account management, extensive connectivity solutions, compliance checks and reporting within a highly scalable infrastructure. Sterling’s Risk and Margin solutions are a cloud-based full suite of tools that monitor market and regulatory risk in real-time, for both simple and advanced portfolios. The firm’s SaaS-based, broker-neutral offering covers US equities, options, and futures in the US, Canada, Brazil and Hong Kong.
STT provides trading platforms, OMS, and risk and margin systems for the global equities, equity options and futures markets to more than 100 clients including brokers, clearing firms and prop groups in over 20 countries.
Sterling added FX and Crypto to its multi-asset risk coverage
Sterling has recently added FX and Crypto to its risk and margin system in order to reach a new level of multi-asset risk coverage for clients. The Risk & Margin System (SRM) now offers advanced analytics as a RaaS (Risk-as-a-Service) solution, covering FX, Crypto, equity, equity options, and equity futures markets for risk calculations.
The SRM uses quantitative and big data techniques to manage risk and monitor margin in real-time, calculating risk scenarios, stress tests, portfolio margin, risk-based haircuts, maintenance margin, and Value at Risk (VaR) for each account, with the capability to add and handle firm-specific house rules, the fintech explained.
The risk and margin system offers specific functionalities related to the new asset classes, which include:
- Support of FX spot, forward and swap trades and positions, in any currency pair;
- Support of crypto including crypto priced in any currency;
- Risk aggregated by currency or digital asset, derived by extracting net exposure by currency across all pairs and non-USD equity and crypto trades;
- Ability to view balances by fiat currency and crypto;
- Risk shocks analytics based on fixed percentage moves and standard deviation moves;
- VaR analytics for multi asset-portfolios including equities, fiat and crypto
In June, the firm appointed industry veteran Jeff Marston as Chief Technology Officer, who will manage the overall technology strategy, oversee technological investments to help drive business development, and oversee the development and delivery of technology solutions for clients.
The hire came on the heels of STT’s recent enhancements to its OMS, including fractional shares capabilities that are instrumental for retail and crypto trading, and a new risk-based rules engine, offering broker-dealers and their traders more power and flexibility.
Earlier this month, Sterling appointed industry veteran W. Brennan Carley to its board of directors. His career includes senior roles at Refinitiv, Instinet and NYFIX, and board positions at fintech companies including Yipes and Marketcetera.