Frances Faulds
Frances Faulds

Granularity, analytics, speed and delivery - competition heats up across the FX data space

The rapid growth in electronic trading venues for FX, technology advancements and greater regulatory demands and scrutiny are greatly impacting how FX firms source, manage and use market data. Frances Faulds investigates.

First Published: e-Forex Magazine 74 / Special Report / December, 2016

The differing regulatory treatment of the FX market has set it apart from equities and derivatives, and while this has encouraged innovation and a wide variety of different types of FX spot venues, there is very little market data available. From central limit order books (CLOBs), such as EBS and Thomson Reuters, where there is the same pricing, all-to-all, and no last-look; ECNs, where users see different prices from their own liquidity providers and have last-look; single dealer platforms, where again different clients see different prices; to exchanges and non-bank market makers; clients trading without using any platform at all, but using their own aggregation tools and taking pricing feeds from both bank and non-bank liquidity providers, as well as the midbook dark pools, which produce no market data at all, market data is relatively scarce in the FX market. Tim Cartledge, Chief Strategy Officer for EBS BrokerTec, points out that FX market is not only dealing with fragmentation, but the lack...continued

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