Efficiently Sourcing FX Block-Trade Liquidity without Information Leakage or Market Impact

Posted by Anthony Brocco on Nov 16, 2015 9:51:33 AM

New electronic solutions for FX block trading are emerging as this last bastion of voice trading is being reshaped by increased regulatory capital requirements, tighter internal credit standards and fallout from the fixing quagmire.

This article discusses the Full Order Execution (FOX) block trading mechanism offered by Advanced Markets, which operates a low latency, direct market access (DMA) liquidity pool in which liquidity is streamed by 10 leading FX banks.

Read More

Topics: Industry Trends, Thought Leadership, Block Trading, Wholesale FX, Retail Trader, Retail Broker, Institutional Trader, Institutional Broker

10 Things You May Be Missing When Selecting Your Liquidity Partner

Posted by Natallia Hunik on Oct 14, 2015 12:14:00 PM

I, along with my institutional FX Team at Advanced Markets and Fortex, am dealing with FX brokers who may be in search of liquidity, technology solutions of all kinds, infrastructure enhancements or sometimes just a price feed that is stable and reliable on a daily basis. We have seen it all from novice brokers that need everything explained from A to Z, medium-sized price-conscious brokers that are trying to bypass pre-qualifications and over-state their volume figures to get better deals to larger brokers asking us to fill out  lengthy RFPs (Request for Proposal)  while the work on selecting a new liquidity partner

Read More

Topics: FX Liquidity, Start Your Own Forex Brokerage, Brokerage, SYOB, FX Broker Startup, FX Liquidity Provider, Retail Trader, Retail Broker, Institutional Trader, Institutional Broker

6 Points to Consider Before Starting Your Own Forex Brokerage

Posted by Shobin Mathew Simon on Aug 20, 2015 9:41:00 AM
The foreign exchange (FX) market now generates more than $5 trillion a day, making it the largest market in the world from a volume standpoint, surpassing any other market in the world.*
Over the past few years the opportunities and successes in the foreign exchange market have attracted a significant number of investors and traders. The growth in the number of Forex brokers during this time is attributable to the fact that they have realized the tremendous revenue opportunity that is there for them when they own a brokerage rather than simply introducing clients. The increased number of start-up Forex brokers over the last decade is evidence that more and more FX entrepreneurs are finding it more profitable to run their own businesses rather than continuing to funnel business to larger brokers via traditional IB arrangements.
Read More

Topics: Forex Brokerage, Start Your Own Forex Brokerage, SYOB, FX Broker Startup, FX Technology Provider, FX Liquidity Provider, Institutional Trader, Institutional Broker, FX Jurisdictions

4 Ways to Verify That You Are Working with a Prime of Prime (PoP)

Posted by Richard Perona on Jun 30, 2015 7:22:00 AM

Over the past few years the traditional FX Prime Broker industry has been thinning out, creating a demand for the types of services they provided. The loss of the institutional big bank Prime Brokerage services has occurred due to credit risk, small profit margin, risk aversion and new regulation. This reaction by those larger prime brokers has been clearing the way for specialized FX Prime of Prime (PoP) firms to gain market share. A Prime of Prime brokerage is a one stop shop for retail brokerages, hedge funds, money managers and wholesale traders to access top tiered global bank liquidity, cutting edge technology, cost effective rollover rates and clearing services.

Read More

Topics: Traders, Thought Leadership, Forex Brokerage, Prime of Prime, Brokerage, FX Liquidity Provider, Institutional Trader, Institutional Broker

How to Safeguard Your Forex Funds Against Brokerage Bankruptcy

Posted by Richard Perona on May 5, 2015 9:52:00 AM

On January 15, 2015, the SNB (Swiss National Bank) caused a massive upheaval in the FX industry when they manipulated the exchange rate of the franc and unpegged their currency against the euro.
This action threw the markets into complete panic, ultimately producing capitulation with the CHF pairs and creating catastrophic losses throughout the industry. Market participants were affected across the entire spectrum, all the way from the top tiered global banks down to individual investors.
The large banks and market makers were able to absorb the losses (or major gains if B Book), but the smaller, more vulnerable, participants could not.
Some brokerages were forced to close their doors due to negative balances as a result of the losses sustained from their client’s positions. A multitude of firms such as Alpari UK, Boston Prime, Excel Markets and Liquid Markets became insolvent, just to name a few.

Read More

Topics: Traders, Thought Leadership, Forex Brokerage, Start Your Own Forex Brokerage, Brokerage, SYOB, FX Broker Startup, Forex B2B, Retail Trader, Retail Broker, Institutional Trader, Institutional Broker