ParFX, a subsidiary of the Tradition Group operating a first pillar – trying to eradicate poor behaviour driven by latency advantages,” says Roger Rutherford, Chief Operating Officer at ParFX in London.
Dan Marcus, CEO of ParFX and Global Head of Strategy and Business Development at Tradition, said: “The geographical location is not necessarily a barrier to trading and it is theoretically possible for trading and liquidity to shift from one jurisdiction to another if the conditions are more favorable.”
ParFX is an electronic foreign exchange platform created by interdealer broker Tradition and a group of FX banks in 2013. It was one of the first venues to offer time delays to curtail the advantage of high-frequency traders via a randomised pause in the order- entry process.
Dan Marcus, CEO at ParFX, says: "I would not be surprised to see spot levels come back up in the future, given their lower capital and margin requirements, but this market is nothing if not unpredictable."
In October 2015, ParFX, the wholesale electronic trading platform owned by a consortium of 14 banks, added offshore RMB to its roster of tradeable currencies. The move not only demonstrated the importance of the offshore RMB to major banks, it also showed that the offshore RMB was deemed sufficiently stable to be added to the ParFX portfolio.
A growing percentage of equities volume seems to be done in a “dark” or at least “opaque” environment, that is foreign exchange 101, and we are hearing more about the need for speed bumps – step forward Campbell Adams and the team at what is now ParFX for introducing that model in FX some years back.
The team at ParFX, a consortium of the top FX banks working with Tradition, were first off the block to introduce measures to address disruptive high frequency trading to the core spot FX market some years back.
Roger Rutherford, Chief Operating Officer of ParFX, a wholly owned subsidiary of Tradition, also believes equality and transparency is central to a healthy trading environment on its matching platform, rather than an emphasis on speed.
In an attempt to insulate themselves from HFT, several large dealer banks were behind the April 2013 launch of the trading platform ParFX, which applied randomised pauses (measured in milliseconds), known as latency floors, to orders executed on the platform. EBS followed by introducing a latency floor on the AUD/USD pair in August 2013, and then extended it to a number of other currencies in the following months. Similarly, Reuters Matching introduced latency floors in 2014.
Dan Marcus, chief executive of electronic dealing platform ParFX, said a growing number of trading institutions rely on superior strategies. "For these firms, firmness and depth of liquidity are key, rather than superior speed,” he said.