Peter Durkan CTO of Lucera Financial Infrastructures
Peter Durkan CTO of Lucera Financial Infrastructures

Optimizing access to FX liquidity pools

First Published: e-Forex Magazine 59 / Expert Opinion / January, 2015

Why are so many FX trading firms, particularly liquidity takers, still struggling with their day to day Liquidity Management activities? This is, in our opinion, a combination of two trends that have been prevalent in FX: liquidity fragmentation and last look. The FX market is a highly decentralized asset in which dozens if not hundreds of market sources or venues are available for trading. The breath of connectivity and API compatibility required to build a well-informed and efficient liquidity pool is increasing and is often cost and resource prohibitive. Building, maintaining and managing this breath of connectivity is a daunting task. In addition, the prevalence of last look in trading means that liquidity takers need a robust set of pre-trade analytics to estimate the viability of a shown market. How important is it for an FX trading firm to get a better understanding of the best liquidity provider for a particular trade and how can they go about achieving this? The FX market is at an...continued

Exclusive Content

The full article is only available to current subscribers. Click here to sign in or subscribe by clicking here