The heart of Akurates is its proprietary patented model, at the crossroad of many scientific fields.

Years of market practice and a solid understanding of quantitative finance made us understand how an algorithm could possibly behave like voice brokerage and correctly address real time issues.

Every leading industry takes operational and AI research advances into account to improve their solutions and become intelligent, in one form or another, to emulate human behavior.

That is precisely what we have done, to combine traditional finance issues with powerful modern solutions: machine learning, combinatorial optimization, computational geometry, to cite some examples.

It allowed us to develop a cutting-edge algorithm, with many human-like abilities. In a dynamic environment made of autonomous agents, it will act as a cooperative meta-agent with market oversight.

This highly efficient algorithm is designed to handle any problem size in real time, due to its scalability. It can address any reasonable market configuration and any instrument type.

It will assess the matching power of orders, considering every relevant piece of information in the market - any order, structure logic, size, price, risk ratio, available counterpart, etc.

It can understand how structures can combine to produce trades. That means the best pattern will be identified to make trades, no matter how many structures are involved and how complex they are.

And if a single or a combination of orders looks like your structure, you will be informed.

Akurates gives you the choice. You can ask your broker to input your orders or you are free to do so yourself.

With Akurates, you can define a range of instruments for any leg of your order and set every price. The sizes are automatically adjusted with regard to vega ratio. This means that you can trade an amount of risk in a specific area and therefore increase the chance of matching an existing order. Therefore, you can decide to buy 5y5y, 5y6y or 5y7y in this order of preference. Alternatively, a trader can choose to buy 5y5y, 6y5y, 5y6y or 6y6y versus 10y10y, 9y10y, 10y9y or 9y9y giving him 16 possible spread permutations!

Mids are default prices. You can accept or reject them and post your own price, according to your own view, as it should always be in a market. If you get close enough to another order, you are free to adjust your order until matching. Then you may raise the size if you choose to do so.

You are free to choose your price, instrument and strategy according to your real need. If any order is a potential match, Akurates will tell you.

You are free to choose any smile instrument from a comprehensive list of strikes for strangles, collar, payer and receiver and even build spreads and butterflies with the.

You can also choose to vega hedge the whole structure or not, to focus on skew/smile risks.

Before each session, participants are free to activate or deactivate compatible counterparts for limit or other reason. In this case, they won’t see each other’s orders nor will they match.

Exit the matrix. Akurates provides the first online pricer in the IRD market: price any structure, build your own list of strategies, follow it in real time and retrieve historical market data.

The Swaptions market is made up of hundreds of instruments that do not trade continuously. So that, to a large extent, mid prices are modeled in a sophisticated interpolation/extrapolation scheme, with many degrees of freedom.

So if participants can only trade at mid price, can we really say they trade at market price?

And if there is no price formation mechanism, can we even call it a market?

With Akurates, participants can use mids as default price and are free to enter their own price, contributing to form a market price with a counterpart.

During sessions, Akurates provides a heat map that reflects market activity.

This heat map preserves information at best. Order prices are not shown to unconcerned participant, preventing adverse selection. A strategy is not shown per se either; only its constituents will be. When any information becomes relevant to increase matching chances, i.e. when order features are near enough, concerned participants get informed. Say you buy a 10y10y P+200. If anybody sells something like a 10y10y P+300 or 9y10y P+200 for instance, Akurates will tell you.

If you selected several instrument in a specific order, Akurates will take into account your preference: If many solutions are possible, Akurates will choose the best one, according to price and instrument rank specified in your list.

So that a trader can place his order in its totality with full confidence.

Akurates will act as a perfect voice broker, knowing everybody’s exact situation but never telling too much.

Akurates’ input zone allows you to create your orders in details: legs, instruments, prices, sizes, etc. When your order is fully specified, you may load it to your blotter and then make it firm it as separate steps. This process increases your safety.

In the meantime, the heat map displays all your orders in a synthetic colored view as another sanity check.

Regarding pricing, you can also trust Akurates. We are constantly in touch with traders through our brokers to follow market prices and update our model. And when paradigm changes, Akurates evolves.

In IRD markets, participants may trade hundreds of different instruments and strategies. Therefore the probability they match should be very low. A bad solution consists of decreasing the number of tradable buckets. Akurates chose to provide full flexibility to participants without sacrificing matching chances. How can it be?

The answer is Interactivity. Akurates can see that an order or a combination of orders looks similar to an order from a different party. Akurates will tell then advise the relevant participants so that they can update their order and possibly match.

Once you have entered your order, a matching indicator will give you an idea of your matching chances.

The matching indicator is a dynamic feature that handles any relevant information in the market. It will take into account the number of compatible participants, other orders similarities, strategy constraints, size, price, risk ratio, etc.

If your matching chances are high enough, Smart Pills may appear to give suggestions as to how to adjust your order, with regard to other potential matches.

You will be free to alter your expiry or to change your price if you wish.

You may also turn an outright order into a spread.

As the matching indicator, Smart Pills are dynamic and can change according to events all along the session.

In case your order is close enough to an opposite order, a click & trade button appears to give the choice to trade instantly. For instance, 9y10y and 10y10y straddles are close enough to be seen as an acceptable substitute for most of participants.

Akurates’ pricing mode offers an interactive experience, providing pricing with chat like syntax and live screens that may be linked to your Excel sheets.

Access to Akurates service does not require any software installation. Akurates is a secured website you may access from any browser.

It was designed by an ergonomist to handle complex issues in a few clicks.

With Akurates, you may build piece by piece a sophisticated order in the most intuitive way.

To input your order, you only have to pick your instruments and change direction if you want to go on building a spread or a butterfly.

Default size will be iteratively updated with regard to market practices (e.g. the size of a spread is 1.5 time the market size of the largest tenor).

Hedge ratios are automatically defined for every relevant risk.

At any time during the session, in a single click, you may decide that the second leg of your spread is optional or that your strangle strategy shouldn’t be vega hedged.

You may adjust price and size with increment/decrement buttons, with relevant steps.

You may take your time to load your orders in the blotter before a session and get ready when action starts.

Akurates will refresh strikes, size ratios, prices etc. when session starts. Double check details and firm your order.

After a session, in one click, transmit remaining orders to your broker to continue in the voice market.

Electronic platforms will play a greater role in interest rate markets.

It seems likely that at the end, there will only be one platform that concentrates liquidity, the ultimate marketplace.

Traders should be sure that it is built for them to offer the best possible market access that technology allows, as in every leading industry.

They should make certain that it exhibits a price formation mechanism.

How could we reasonably imagine a world where an electronic platform drives most of orders at a fixed price determined out of it?

Price have to be formed IN the market!

They should ensure that it provides full freedom for them to address their real needs and not a truncated choice.

They should ensure that it is trustworthy and that information is managed carefully.

This is the necessary condition for people to put their orders with full accuracy and reach market optimum. And to prevent adverse selection when liquidity is scarce.

They should desire that it communicates and tells them how to improve their situation regarding the whole configuration.

They should hope that it is simple but not simplistic, considering the stakes.

This platform must be truly intelligent! Otherwise, how could it possibly do all these brilliant things?

This is our philosophy and the reason why we are proud to offer you a new trading experience.