FXSpotStream is a bank owned consortium founded in 2011 and operates as a market utility. It provides multibank FX streaming, RFS and matching services supporting trading in FX Spot, Forwards, Swaps, NDF/NDS and Spot and Swap Precious Metals. Clients can access a GUI or single API from co-location sites in New York, London and Tokyo. With FXSpotStream, clients preserve their direct relationship with their Liquidity Providers as trading is fully disclosed and bilateral.
The firm has revolutionized the FX trading landscape by eliminating the cost of execution for price takers and allowing price makers the ability to pay a flat fee for all executed transactions. It is the only venue on the market today with this commercial model and continues to gain considerable traction in the market which is evidenced by the continued growth in its supported volumes. June and August 2017 saw record volumes flow through the service with Average Daily Volume up 16.4% and 9.5% Month-on-Month, respectively, and a 54.6% Year-on-Year increase in August.
New Liquidity Provider to be added
FXSpotStream will soon announce the addition of a 13th liquidity providing bank available to clients connected to FXSpotStream’s service. The addition of a new liquidity provider will complement the liquidity available from FXSpotStream’s existing liquidity providers, which are BofA Merrill Lynch, BTMU, BNP Paribas, Citi, Commerzbank AG, Credit Suisse, Goldman Sachs, HSBC, J.P. Morgan, Morgan Stanley, Standard Chartered and UBS.
Commenting on this development, Alan Schwarz, CEO of FXSpotStream says that, “Adding another liquidity provider more than doubles the number of banks originally on the service when FXSpotStream was launched in 2011 and demonstrates the growing demand for an alternative trading service model which reduces the cost of execution for all participants - takers and makers - without altering the bilateral trading relationship or client experience. Increased global regulatory requirements, among other things, are pushing all market participants to examine the cost of trading across all asset classes and adopting a service such as FXSpotStream eliminates one significant cost element. Plus, with lower execution costs for Liquidity Providers, clients can expect a better price.”
Launch of powerful new analytics suite
The changing regulatory landscape and a continued focus on transparency has been a driver in the development of FXSpotStream’s powerful new analytics suite. Clients and Liquidity Providers are both seeking tools to help them accurately record and monitor transparency in pricing and prove best execution. In addition, all market participants are keenly interested in statistics relating to the life cycle of a trade from price reception to order confirmation. With this in mind, FXSpotStream worked with a core group of users and its service provider to develop a new analytics suite which is being launched in the Q4 2017.
FXSpotStream’s powerful analytics service provides real-time dashboards across a number of data-sets including Order Latencies, Order Response Time, Best Execution Report, Spread Analysis and Fill Ratios. Users will be able to view real-time data as well as search historical trading records and it is easily accessible via a web browser with no software to install.
Providing these powerful tools saves clients the time and money required to build and maintain a big-data library of every price tick and order submitted. The company is providing an easy entry into big-data analytics that firms can use to monitor and improve trading performance. The new service will allow clients to perform the appropriate due-diligence with each of their Liquidity Provider banks to optimise their trading relationship. Historical data reports can be retrieved in order to benchmark performance over time.
For Liquidity Providers, FXSpotStream’s analytics suite provides the tools to proactively manage their client relationships and ensure that their e-FX offering is personalised to meet the needs of each client while at the same time managing the risk profile of each counterparty. They will be able to monitor any latency issues to help troubleshoot bottlenecks in their own pricing systems and network.
Another new product enhancement planned for Q3 is the addition of Precious Metals Swaps, says Schwarz. “FXSpotStream already offers Spot Precious Metals trading in Gold, Silver, Platinum and Palladium and with growing interest in trading these instruments, we have worked with our Liquidity Providers to develop the Swaps offering, “ he states.
New client services and sales staff added
FXSpotStream continues to invest in customer support teams in New York, Europe and Tokyo and will continue to do so as its superior customer service helps it to win business, says Schwarz. The company has recently hired new staff in all three office locations. As e-FX trading technology becomes increasingly commoditized, building successful relationships and providing top customer support is a key element to its business success.