MaterialsXchange: Transforming Commodity Trading with Advanced Exchange Solutions

The Client

American Financial Exchange (AFX) is a self-regulated exchange founded in 2015, providing an open, rule-based electronic platform for direct interbank lending and borrowing among American financial institutions. AFX's product portfolio includes various offerings like overnight and 30-day unsecured loans, 7-day secured loans, and demand deposits.

These products are designed to enhance transparency and efficiency in the interbank lending market. AFX boasts over 150 members spanning 49 U.S. states and territories, along with numerous participants within the correspondent bank market, further strengthening its role in the financial landscape.

The Challenge

In its early stages, AFX, a promising startup, faced the crucial challenge of finding a technology partner capable of delivering a secure and production-ready exchange platform while navigating constraints such as time, budget, and evolving requirements.

Although AFX possessed a clear vision and strategic direction, it sought assistance in translating this vision into a tangible, executable plan aimed at achieving its first trade. SwiftXchange's two decades of expertise in capital markets software delivery and nearly a decade of specialization in designing and constructing adaptable matching engine and exchange solutions made it the optimal choice during AFX’s vendor selection process. This partnership set the stage for AFX's journey toward success.

The Solution

During the initial engagement between SwiftXchange and the AFX product team, SwiftXchange's extensive experience took center stage. They devised a comprehensive strategy that encompassed the requirements for an initial exchange platform, a roadmap for future enhancements, and a post-launch support and maintenance program.

A crucial element of a successful implementation is the precise definition of features and requirements for the initial deployment. AFX sought SwiftXchange's expertise in articulating the essential features and requirements for the platform's launch. The two teams worked closely to define and document these features, resulting in several artifacts, including a prioritized feature list with a strong focus on the launch phase. They also crafted a Product Roadmap that outlined delivery milestones, complete with time and cost estimates, leading up to the launch and beyond.

With the plan in place, SwiftXchange initiated the solution's implementation, combining the development of new custom-built components with refinements to existing SwiftXchange proprietary software. The implementation adhered to SwiftXchange's agile development methodologies, incorporating practices such as test-driven development, automated testing, and continuous integration. SwiftXchange maintained close monitoring of the team's velocity and ensured transparent communication with AFX. They calculated release dates for ongoing milestones, offering the transparency and assurance needed by AFX to design marketing strategies and customer onboarding campaigns before the exchange's launch.

SwiftXchange successfully delivered the AFX exchange platform, fully prepared for launch, in December 2015. They continue to provide ongoing engineering support and platform maintenance, safeguarding the exchange's sustained functionality and success.

The Results

Through its experience and advanced technology, SwiftXchange played a pivotal role in assisting AFX in achieving its two core strategic objectives:

• Creating an efficient and organized centralized marketplace that facilitates cost-effective "price discovery" of interbank lending rates.

• Establishing new interest rate benchmarks tailored to the specific requirements of small, medium, and regional banks across the United States.