High-frequency traders shift from speed back to strategy*†
By Roger Rutherford, chief operating officer at ParFX: "There is a dawning realisation among all asset classes, including foreign exchange that a focus on speed is no longer enough to stay ahead of the game. Speed is progressively becoming a commodity and there has been a distinct shift away from simply looking for millisecond-advantages to utilising analytics to support smart, rather than just fast, trading decisions."
Platform capacity issues raise liquidity concerns*†
“As last look window times have decreased, LPs may also need to react or reprice in a shorter timeframe, which could also mean increased price updates per second,” says Roger Rutherford, chief operating officer at ParFX. “Although we have seen an increase in market-making activity on our platform, which is normal for a growing venue like us, we have adequate capacity and ability to scale as the business requires,” he adds.
Prime-of-Prime: A Risky Business?*†
“There are tight agreements between the PB and the prime-of-prime broker in terms of the level of permitted risk and type of controls they have in place at the prime-of-prime client level,” explains Roger Rutherford, COO of ParFX.
High-frequency trading: Speed is not the only game in town*†
“The race has become a lot faster, with an increasing number of participants in a diminishing game,” says Roger Rutherford, Chief Operating Officer at ParFX, a spot FX trading platform founded by some of the world’s largest FX trading institutions.”
How to combat bad trading behaviour in the FX market*
Roger Rutherford, Chief Operating Officer at ParFX, speaks to bobsguide about the tech (r)evolution in the FX market, the impact of bad trading behaviour, and why an equal and fair platform is good for all.
FXPB: Which Way is the Pendulum Swinging?*†
“After the SNB event there was a shift — risk and oversight departments started to increase control of the trading floor and credit officers started getting involved. This caused a shake-up predominantly in the prime brokerage space, but it also had an impact across trading in general,” says Roger Rutherford, COO at ParFX.
Buy-side gets up to speed on FX*†
In line with the rest of the industry, buy-side traders have observed trends such as rising market data costs and the negative impact of disruptive trading behaviour on their execution strategies, adds Roger Rutherford, Chief Operating Officer at ParFX.
“With this in mind, they are increasingly looking for trading environments that facilitate access to firm, stable liquidity, transparent pricing and efficient execution,” he says.
FX: XTX’s ‘zero hold time’ adds to debate over ‘last look’ practices*†
XTX believes that during the next year or so, the other major liquidity providers are likely to eliminate the hold window, although ParFX COO Roger Rutherford accepts that the market is only at the start of a change in how hold times and latency buffers are amended or removed.
Foreign exchange: the democratisation of forex trading*
"It's no longer just about making people's money move," says Roger Rutherford chief operating officer at ParFX.
Speed is losing its edge in FX*
Roger Rutherford, chief operating officer at ParFX, suggests that diminishing marginal returns and exponential cost increases have forced high frequency traders to accept that speed is no longer enough to stay ahead of the game. As a result, there has been a distinct shift towards strategy and analytics in order to make smarter trading decisions and gain a competitive edge.