LMAX Global, the Financial Conduct Authority (FCA) regulated broker for FX and part of the LMAX Exchange Group has announced that its global liquidity has been added to the Kx trading platform, Kx for Flow.
Institutional clients and brokers, using the Kx for Flow trading UI, will now have access to the broker's liquidity, spreads and execution with no ‘last look’ as standard.
Rob Brown, international development executive at LMAX Global comments: “We are very pleased to announce the partnership with Kx. The link will offer more institutional clients an enhanced trading experience - delivered through the combination of Kx for Flow leading technology and direct access to trade through LMAX Global on the central limit order book with streaming firm liquidity from top tier banks and proprietary trading firms.”
Volume data released by Thomson Reuters shows the firm handled $107.9 billion per day in spot FX average daily volume (ADV), up 22.6% from December and 18.6% higher than January 2017.
The trend in the data reflects that of platforms that have already released data, however Thomson Reuters, whose Financial and Risk Division which houses the trading platforms has just been sold to Blackstone, also reports record ADV across all FX products of $432.1 billion, itself a 10.2% month-on-month rise and an impressive 26.3% rise year on year.
The news that State Street has gone live as the 13th liquidity provider (LP) on FXSpotStream comes as the service has reported its highest ever month of average daily volumes (ADV).
“We closed the year on a strong note with the addition of State Street to the existing panel of global banks on our Service. State Street is now live globally and pricing to our clients out of our sites in New York, London and Tokyo,” says Alan Schwarz, CEO of FXSpotStream.
Speaking to Profit & Loss about the addition of State Street, Schwarz observes: “What’s interesting about them is that their e-FX franchise is at a different life cycle than some of our other liquidity providers and they have been focusing on improving their electronic pricing service.
The average daily volume (ADV) for spot FX trading on Nex Markets was $104.9 billion in January, while CME Group handled around $109 billion including FX options.
The NEX data represents a 13% increase from the $93.2 billion ADV it recorded in January 2017, and a massive 60% month-on-month increase.
The volumes being reported by Nex and CME are consistent with a broader trend across the multi-bank platforms that report their volumes, with Hotspot, GTX, FXSpotStream and FastMatch all reporting a spike in trading volumes last month. Indeed, the first of these three platforms all reported record ADV highs in January.
FXSpotStream has become the latest platform to announce a new high for monthly average daily volume (ADV) on its platform in January, hitting $26.34 billion in ADV.
This beats the prior record ADV of $23.94 billion by a substantial 10% and represents a 33% increase in ADV compared to December 2017 and a massive year-on-year ADV increase of 40%.
FXSpotStream also recorded its second highest day of volumes ever of $40 billion, a figure topped only by the $49 billion that was traded on the platform in November 2016, when the US presidential election caused a broad spike in trading across numerous FX platforms.
The first three platforms to report FX trading volumes indicate January was a strong start to the year all round, with Cboe’s HotspotFX and Gain’s GTX platforms both recording new record highs for average daily volume.
Cboe’s Hotspot reported ADV of $42.6 billion in January, up 37% from December and 43.9% up year-on-year.
Euronext’s FastmatchFX also saw a healthy bounce from December and on a year-on-year basis, with ADV at $20.8 billion, a 33.3% rise month-on-month and 22.4% up year-on-year.
Gain’s GTX also set a new high at $13.9 billion per day, up 28.7% from December and 10.3% higher year-on-year.
NEX Markets has raised brokerage on its Select and Direct platforms following last year’s release of NEX Analytics and what Tim Cartledge, head of FX at NEX Markets, terms, “a range of improvements” to the platform including better aggregation logic and sweeping capabilities.
Notification of the price rise is understood to be going out in Europe this week with the rise to come into effect in April, it will also apply in Asia and the Americas in coming months as the new functionality is embedded in those regions.
Saxo Bank has launched a new, full amount execution infrastructure for its prime-of-prime (PoP) service.
Running on dedicated infrastructure through the firm’s direct market access (DMA) liquidity hubs in London and New York, Saxo says the full amount execution capability provides lower market impact for large orders in FX and precious metals.
Demand has been driven by growth in small- to mid-sized institutional clients looking for direct market access and liquidity optimisation services.
Lucian Lauerman, global head of electronic distribution, comments: "We have grown our prime-of-prime business quite significantly and we are meeting increasing client demand for execution in large order sizes. To support efficient execution and sustainable liquidity access, we have set up a dedicated infrastructure allowing clients to execute in full amount through liquidity connectivity in both NY4 and LD4. This offers clients better pricing and lower market impact on larger tickets.”
RJ O’Brien (RJO) is winding down its FX business, having concluded that this market no longer represents a strategic opportunity for the firm.
"RJO has recently concluded the FX marketplace is no longer strategically attractive to the firm. As such, the firm has decided to wind down its FX business effective immediately. RJO will further focus our resources on our core offerings. We remain focused every day on delivering best-in-class service to our clients throughout the world," says an RJO spokesperson.
Profit & Loss understands that all 17 of the staff on the FX team at RJO have been let go as a result of the decision. Amongst those believed to be leaving are FX head Tony Dalton; global head of FX sales, Matthew Ardizzone; and director, FX sales, Richard Pisarra.
Thomson Reuters (TR) has made a number of service updates following the January 3 go-live date for Mifid II.
It is now offering Mifid II compliant data to clients from 57 global exchanges and eight new Mifid II trading and reporting venues, including Tradeweb's Approved Publication Arrangement (APA) and MTS BondVision's Multilateral Trading Facility (MTF).
TR has also launched its MTF, which offers Mifid II compliant trade reporting, and updated its instrument reference data capabilities to ensure comprehensive coverage of the key financial instruments covered by the regulation.