MarketPrizm, a market data and trading infrastructure provider in the equities market, has launched a connectivity service for the foreign exchange market.
PrizmFx will allow electronic FX traders to connect with multiple liquidity providers and trading platforms globally. Clients can simplify their access to a multitude of platforms, collocate close to each matching engine, and use a single connection for price discovery and execution, MarketPrizm says. The company now offers cross-asset coverage for equities, derivatives, commodities and FX markets.
Specifically, PrizmFx provides ultra-low latency connectivity and collocation hosting services to major FX ECNs and single bank platforms. Clients can be collocated next to the matching engines in New York, London and Singapore to access the platforms locally in their region or they can use MarketPrizm’s ultra-low latency network infrastructure, PrizmNet, to gain access into the platforms from their own locations or from any one of MarketPrizm’s exchange locations in Europe and Asia.
The FX market has increasingly become characterised by the fragmentation of trading venues, resulting in a rise in global access costs. MarketPrizm says PrizmFx addresses this issue by offering a single connection for price discovery and execution.
“The world of FX trading is changing rapidly with continued growth in electronic and algorithmic trading volumes, the opening up of the market to new entrants, and further regulatory initiatives. We believe that the industry is now at a point in its development where PrixmFx can make a real difference,” says Tanuja Randery, CEO of MarketPrizm.
In an interview with Squawkbox, Randery says the PrizmFx offering supports clients in a number of ways. “In addition to the data side, clients need to be able to send orders to various exchanges, to connect to multiple exchanges; they need low-latency networking and collocation and hosted services to arbitrage in microseconds.
“We have infrastructure that we have invested in in multiple locations and clients can connect with us directly in any of these locations. We can then feed that with data from the exchange in both raw or our normalised format and then into the client server/application,” says Randery. “This allows client algos, for example, to check prices on multiple markets and at the same time choose the best to trade on. We provide our infrastructure and data as a service which means our clients don't have the complexity of managing the components.”
The introduction of the offering to the FX market follows the success of the company’s trading and infrastructure offering in the equities market.
“MarketPrizm is well known as a provider of market data to the equity and equity derivatives markets. But we are growing our offer both geographically as well as by asset class, most recently with the launch of our commodities platform, and now PrizmFx is the next step in providing cross-asset class coverage for our clients globally,” says Randery.
Looking ahead, Randery says that MarketPrizm wants to add historical and tick data to the offering. In the meantime, the value proposition of PrizmFx is its simplicity. “We are getting rid of the complexity that exists in FX as you are talking about so many connections, so many cross-connects, trading across geographies, vendors, hardware, etc. Therefore we take all of that complexity away, increase efficiency and work towards faster onboarding for clients.”