Traders still haunted by liquidity mirages in FX*†
Liquidity – the ability to buy or sell financial products on trading venues and exchanges at a given time and price – is the lifeblood of financial markets. Central banks, wholesale banks, corporations, investment, hedge funds, asset managers, pension funds and money managers all rely on access to firm, executable liquidity every day in order to exchange risk, fund their business operations, pay suppliers and staff, and hedge their exposures.
Winds of Change in $5 Trillion FX Market*
While transparency around last look has improved, "we’ve got a long way to go," said Roger Rutherford, chief operating officer of ParFX, whose platform falls outside of the scope of the new rules because it focuses on spot trading, an area that MiFID II doesn’t address.
Interdealer Broker of the Year 2018: The Nominees*
Tradition has achieved growth on ParFX, its spot foreign exchange platform, and Elixium, its all-to-all repo trading platform, and has also extended its partnership with compression and analytics provider LMRKTS to deliver initial margin optimisation for FX clients.
Last-look guidance felt as market prepares for FX code deadline*
Roger Rutherford, COO of ParFX, says: “The direction of travel is towards openness and transparency. That is why we think it is so important that traders know the identity of their counterparty post trade, as they do on our platform. It provides clarity and allows them to truly analyze the behaviour of their liquidity provider.”
Bloomberg Markets: Rules & Returns*
Dan Marcus of Tradition and Philip Chapple of Monterone Partners discuss MiFID II. They speak with Bloomberg’s Nejra Cehic on "Bloomberg Markets: Rules & Returns."
CFTC’s concerns about FX industry annoys pros*
Busch’s views have garnered some sympathy, with ParFX CEO Dan Marcus describing phantom liquidity as a hindrance to traders that not only portrays an inaccurate picture of market depth but also results in a lack of confidence across the board as efficient price discovery and execution is unachievable.
Investment Association unhappy with controversial FX practice*†
Responding to the IA's guidance, Roger Rutherford, chief operating officer at trading venue ParFX, said: "It is clear that market participants remain concerned about how the information gained during the last look window is used, rather than the over-arching practice of last look itself." He added that many institutions have already begun amending terms and conditions to ensure that clients understand how and when the practice is used.
Venue fragmentation set to continue, says FX veteran*
Author James Sinclair, executive chairman and co-founder of FX trading technology provider MarketFactory, believes the proliferation of venues has been inevitable since the launch of ParFX, a bank-backed currencies platform hosted by interdealer broker Tradition that began trading in 2013. The launch of ParFX coincided with a number of other new initiatives, each with a unique strategy to attract and maintain liquidity.
Fee Fight: Ye Olde Market Data Battleground*
Roger Rutherford, COO of electronic dealing platform ParFX, says that regardless of asset class, financial markets need market infrastructures to take the lead on transparency, fairness and equality, and to make market data affordable and cost-effective for everyone.
FX: Execution leads liquidity as biggest issue for traders – JPMorgan*
If a trade is being executed with a liquidity provider on a principal basis, being able to validate best execution is likely to be the most important factor. If a trade is being executed on an agency basis, availability of liquidity via their provider will be more significant. Both have different outcomes and will suit different trading strategies, says ParFX chief operating officer Roger Rutherford.