“It’s clear that market participants still have some key concerns relating to disclosures, behaviour in anonymous trading environments, and a lack of trading transparency," Roger Rutherford, chief operating officer of Tradition-owned FX trading platform ParFX, said.
Best Trading System: Flextrade, Horizon Software, ParFX, TradingScreen, Trad-X.
As the number of market participants adopting the FX Global Code of Conduct gathers momentum in 2019, there will be a greater focus on the transparency of trading practices, says Roger Rutherford, chief operating officer at trading venue ParFX.
According to Trad-X’s Marcus, the decision to maintain name give-up was about adhering to existing market norms. The practice aligns with the broker’s foreign exchange spot trading platform, ParFX, where it is supposed to reduce the risk of gaming by high-frequency trading firms. In the high-volume, low-value forex market, dealers were worried such firms might post aggressive prices on a Clob to generate more favourable pricing via RFQ. In the swaps market, that argument is harder to make.
Best trading platform overall: Envision Financial Systems, MarketsFlow, MIAX Options, ParFX, Tethys Technology, TraditionSEF, Interactive Brokers, Wolverine Execution Services.
“The ongoing work is ensuring that the price provider is more open and transparent towards the client and they document it in a way that shows you exactly how they’ll treat you. So, being more open and transparent is an enormous first step,” comments Roger Rutherford chief operating officer at ParFX.
In September, chief executive officer of Tradition-owned spot FX trading platform ParFX, pointed out that firms without bargaining power are struggling to get value for money.
A number of observers stress the need for transparency. There are legitimate uses for a holding timer in some circumstances, but those uses need to be transparent and clear to all pre-trade, says Roger Rutherford, COO of ParFX. “It is critical that a speed bump – or a randomized matching tool – achieves its purpose of meaningfully protecting traders against bad trading behaviour,” he adds.
Roger Rutherford, COO of ParFX told Traders Magazine that the SEC’s decision is an eye-opener, not just for those in equities in the US, but across financial markets. It supports the widely held view that there needs to be greater transparency in the pricing of market data.
The banks that are dominant now were among the first to embrace technology and as a result have built global franchises with embedded risk management, price discovery and execution tools that enable them to manage client flow effectively and cater to a wide range of trading strategies and order types, observes ParFX chief operating officer, Roger Rutherford.