Tag: aggregation

aggregation

Broctagon Launches Crypto Aggregation Tool

Singapore-based Broctagon has upgraded its Nexus 2.0 liquidity aggregator technology to include native altcoin liquidity management – a solution it says allows exchanges to regulate the demand and supply of their native altcoins via algo-automated execution to “achieve healthy liquidity and enhance token tradability”. The firm observes that unlike Bitcoin and major altcoins such as Ethereum and Litecoin, most […]

MFP Trading Signs with TraderTools

MFP Trading has selected TraderTools technology for providing its customers a single point of access to aggregated liquidity with tailored relationship pricing. “MFP understands the relationship nature of our market,” says Yaacov Heidingsfeld president of TraderTools. “Tailored relationship pricing is the best way to ensure participants’ best execution, with liquidity priced for business they want […]

And Another Thing…

Monday’s column – predicably I have to say – prompted no little chatter on my communication channels, it’s always that way when I write about the primary venues, and amongst the always interesting conversations was an idea or two about why the April and May data were so awful, and the suggestion of a scenario […]

And Another Thing…

As we reported at the start of this week, Citi formally confirmed what most of us knew, that it was cutting the number of connections to its FX business. I see this as the start of a process, however – nowhere near the end – one that also reflects what is likely to be a […]

In the FICC of It

In a rumbustious podcast this week Galen Stops relates how he took on the Twitter world following a tweet that was clearly misunderstood (he says) and he and Colin Lambert get into a debate over the value of speed bumps in futures markets. One group, as Stops observes, is very unhappy about it, but Lambert points out there is another – rather influential – group, that really like the idea.
Our two podcasters also follow up on a recently published story by Profit & Loss about the potential buyers of Refinitiv as well as take a look at a recent blog post on aggregation in FX which inevitably leads to a question from Stops to Lambert, ‘what do you consider full amount trading?’ Luckily for everyone, the latter keeps his answer reasonably (to him) short – even delving into the depths of his own trading career for an analogy.
Speaking of delving the depths, the podcast closes out by fulfilling its promise of the previous week through delivering “considered analysis” of a recent rival podcast which took a look at the events surrounding the death of crypto exchange Quadriga’s CEO. There are those that think, as Stops notes in this podcast, that the FX industry likes a good gossip and wild speculation, but his report on the investigation into Quadriga leaves FX standing well in the shade…

FX Aggregation: When Less Can be More

There’s an intuitive logic which states that the more liquidity providers (LPs) that a client puts in their aggregator, the better prices they should get. After all, increased competition should cause LPs to tighten their prices in order to win the trade.

However, as Roel Oomen, managing director, electronic FX spot trading at Deutsche Bank, explains, this logic only holds up in a static environment, which the FX market most certainly is not. The reality is that LPs alter their spreads depending on how they perceive the liquidity environment to be at any given point in time.

Liquidity in FX: Not All Prices are Created Equal

When clients are looking at prices in an aggregator they could see a bunch of quotes that appear to be identical to one another.

But as Roel Oomen, managing director, electronic FX spot trading at Deutsche Bank, explains, this does not mean that the transactions costs for dealing on each of those quotes is exactly the same.

This is because rejection rates can vary, the liquidity that’s shown at these quotes can vary, and the risk management style of the liquidity providers (LPs) in the aggregator might vary, with some externalising the risk and other internalising it. But how to tell the two apart?