Tag: Last Look

Last Look

XTX Hands Buy Side New Liquidity Analysis Tool

XTX Markets has made XTX-ray, a tool designed to replicate how sell-side market makers analyse spot FX liquidity, available to buy side market participants.

XTX-ray looks at a wide range of data, including fill ratios, the cost of rejected trades in USD, spreads and market impact, to reveal “hidden” costs embedded in firms’ spot FX execution with the aim of enabling them to more effectively analyse the liquidity they are accessing.

“XTX-ray makes state-of-the-art sell side execution analysis available to buy side firms, and counterparties will be able to evaluate the execution quality of their liquidity providers.

And Finally…

It’s fairly obvious that, to use a buzzword of the moment, the FX market has operated asymmetrically for most of its history – banks have held sway and, until the advent of the non-bank high frequency market maker, had little competition. It took that challenge, allied to a few conduct issues, to redress the imbalance, but I am wondering if the pendulum – as happens so often in this business – is swinging too far the other way? And if it is swinging, what is driving it?

And Finally…

Suggesting that FX liquidity takers pay to access precious foreign exchange liquidity was just the hot topic predicted if the level of correspondence was anything to go by, and while the consensus seemed to be, from the anecdotal evidence, that most people prefer the “both parties pay” model, this raises issues for me. Inevitably last look has a role to play, as pointed out by several correspondents, and if last look is used then yes, the LP should pay for the free option

Last Look in the Spotlight for ACI’s Model Code

The eternally tricky subject of last look is being reviewed by the Committee for Professionalism (CFP) at ACI – The Financial Markets Association with a view to a potential re-write of guidelines published in ACI’s Model Code.
Sources familiar with the matter have told Profit & Loss that the CFP has been canvassing opinion over the appropriate use of last look in FX markets, which continues to split opinion in the industry with the aim of providing a more detailed set of guidelines.

LMAX Exchange Survey Doubts Impact of Global Code: Firm Calls for UK Leadership

In a release to accompany a new survey taken by the firm, LMAX Exchange casts doubt on the ability of the FX Global Code of Conduct to deliver industry reform in a timely fashion. While noting that the first release of the Code is “full of sound ideas and appropriate sentiments” and that “the principles […]