TraderTools has partnered with Citi’s Prime Finance to offer LightFX, a fully-disclosed, relationship-based FX pricing and aggregation service.
The hosted service is expected to go live halfway through the second quarter of 2011 and aims to provide customers with more cost-efficient alternatives to trading on ECNs. TraderTools says it will do this by charging lower upfront and operational costs to liquidity takers because they will be receiving “relationship pricing” from liquidity providers who will not be charged for the service. The client will receive a “tailor made” stream of prices from its liquidity providing banks.
TraderTools says that LightFX differs from platforms such as FXall and Currenex because it offers ongoing aggregated liquidity as opposed to a request for stream. It further adds that it is providing clients with statistical information on the pricing clients are receiving from their banks, for example, which banks price best in certain currency pairs. The client can use this information to better manage their liquidity relationships.
Yaacov Heidingsfeld, CEO of TraderTools, says, “The market is demanding fully-disclosed, relationship-based pricing – and we’re listening.”
The new service puts LightFX in competition with firms such as Integral Development which has offered a fully-disclosed, relationship based model in its FX Grid for several years, including the ability to trade via a prime broker if desired.