Nicholas Pratt talks to leading ECN providers about the indispensable status of the ECN and the factors driving traders’ demands.
Electronic communication networks (ECNs) have become a critical and indispensable tool for FX traders. A report written by WBR Research and Euronext FX, published in late 2024, underlined the indispensable role that ECNs now have for FX traders. For the majority of the survey respondents (56%) access to data is the most valuable benefit of an ECN, along with diverse liquidity sources and comprehensive trading platforms.
“Accessing the FX market often means navigating a maze of fragmented liquidity, limited transparency, and restricted data availability,” states Mercedes Ola, sales director for Euronext FX. “But there’s a better way. ECNs (electronic communication networks) offer a more flexible, transparent, and efficient solution for buy-side clients looking to optimise their FX execution. By connecting you with a pool of liquidity providers optimised for your needs, ECNs put the control back in your hands and open up new opportunities to maximise returns.”
Liquidity insights
As a consequence of the demands of today’s FX traders, ECN providers are looking to add advanced FX order management to further enhance execution efficiency, ensure better pricing and reduce market impact.
“We offer insight on a number of different levels,” says Simon Jones, global head of product and liquidity, FX at LSEG. “Central to our offering is insight for Liquidity Providers (LPs) into how they are engaging with their clients, and the speed and depth of this information continually evolves.”
“At the execution level there is now an embedded process which gives clients the ability to customise their panel of banks according to the outcome they want to achieve, or to source recommendations on the right algo for that pair and time of day,” says Jones. “On a more custom level, we also have execution specialists who focus on how a clients’ actions impact their LPs, helping bring greater understanding to that relationship so that both parties can engage more effectively.”
As the aforementioned survey shows, ECNs are being increasingly recognised as invaluable sources of data that can used to develop sophisticated trading strategies, enhance risk management and inform market microstructure research. “No individual client can experience the range of conditions and circumstances that the collective client base of an ECN can,” says Jones.
“Harnessing that information and turning it into actionable decision points is where venues will differentiate themselves. Aggregation of interest is commoditised but designing workflows to adapt to conditions, fed by information about likely outcomes, will give clients greater control over their execution choices.”
“No individual client can experience the range of conditions and circumstances that the collective client base of an ECN can.”
Simon Jones
Jones also believes that ECNs will continue to grow in popularity with many FX market participants as the industry moves towards greater automation and algorithmic trading. “Through our platforms, our aim is to scale back the need for the trader to touch the commoditised trade,” says Jones.
“The work can be done in advance with the right automation tools – observe the conditions, decide the terms upon which you will trade, ensure you have the correct level of liquidity that reflects a best execution mandate, execute, allocate, book – all no touch. What is changing is the ability for those decisions to adapt as information changes, to date it has been too static. The trader’s attention has to be on where the greatest discretion is required and automation tools free them up to do that.”
Flexible trading
Another ECN provider aiming to offer more flexibility to FX traders is 360T, the Deutsche Boerse-owned FX trading platform that caters for both buy and sell-side firms. According to Vidura Seneviratne, head of spot strategy at 360T, the platform offers a “uniquely flexible and efficient” trading environment by integrating both disclosed and anonymous liquidity into a unified environment. “This setup provides buy-side clients with broad access to liquidity while reducing fragmentation and operational complexity. With ultra-low latency, deterministic infrastructure and real-time data streaming, GTX ensures reliable execution performance that supports a range of trading strategies and enhances transparency,” says Seneviratne.
“Moreover, clients already connected to 360T through any other product can easily access GTX using existing API or GUI connectivity, eliminating the need for extensive new technical builds. This interoperability allows clients to scale their operations rapidly and access liquidity with minimal onboarding hurdles, while benefiting from tools that support both passive and immediate trading styles.” ECN providers are also looking to put more control back into their clients’ hands to open up new opportunities to maximise returns by connecting them with pools of liquidity providers that will cater to their specific needs.
“360TGTX gives clients control over how they access and manage liquidity through features such as firm pricing, last-looked liquidity, and access to dark pools,” says Seneviratne. “This flexibility empowers both makers and takers to choose how they engage, based on their execution goals and risk appetite. Clients can also semi-automate their decisions using logic built into the platform, enabling them to dynamically select the best way to interact with different liquidity pools.
“As the FX industry continues to evolve toward automation, ECNs are ideally positioned to support both systematic and hybrid trading models.”
Vidura Seneviratne
“Custom liquidity pools can be constructed and maintained by segment, such as for systematic funds, agency brokers, or regional banks and credit-constrained clients can access additional opportunities via Prime-of-Prime arrangements. All of this is enhanced by 360TGTX’s ability to tap into the firm’s broader network, offering clients unmatched depth, diversity, and control across counterparties,” says Seneviratne. The direct interaction between buy-side firms and multiple liquidity providers in a single session that is facilitated by ECNs brings multiple benefits, according to Seneviratne.
“360TGTX enables clients to interact directly with a diverse mix of bank, non-bank, and systematic liquidity providers in real time through a consolidated trading interface. The ability to simultaneously engage with disclosed, anonymous, and semi-disclosed liquidity within the same session significantly enhances execution quality and transparency,” says Seneviratne.
Semi-disclosed models, in particular, provide a valuable balance between access and efficiency by reducing the need for extensive onboarding, credit negotiation, and legal papering, says Seneviratne. “This helps clients go live faster without compromising on control. With both GUI and API access options, the platform caters to a broad spectrum of users, from manual traders at regional banks to high-frequency strategies at hedge funds.”
Order management functionality is also another area of development for ECN providers. “GTX supports a suite of advanced order management tools including sweepable logic, pegged orders, mid-point matching, and full amount trading. All of these are designed to provide traders with the ability to control market impact, timing, and visibility. These features can be accessed via GUI or API, ensuring broad usability,” said Seneviratne.
“Additionally, by integrating with 360T’s broader execution infrastructure, such as the execution management system (360T EMS), and Deutsche Borse Group’s wider network of companies, like the independent algo-provider Quantitative Brokers, GTX enables clients to build multi-layered execution workflows,” says Seneviratne. “This allows clients not only to use existing tools but also to experiment with new execution strategies and structures in a flexible, modular environment tailored to their needs.”
As previously stated, ECNs increasingly recognised as invaluable sources of data, so what are ECN providers doing to cater to this trend? “The data generated by 360TGTX’s deterministic and low-latency environment is not just rich but actionable,” says Seneviratne. “When properly organised, this data becomes a powerful foundation for experimentation, allowing the platform and its clients to provide intelligent suggestions and guidance with meaningful explainability. The richness of GTX data—paired with the breadth of our client base—enables learning loops that support both alpha generation and risk control. We are exploring how to embed AI directly into liquidity workflows, transforming this data into real-time, decision-enhancing insights.”
“Since 360TGTX spans a broad and diverse client base, it supports the learning and optimisation of trading models across multiple user types and market conditions,” says Seneviratne. “Disclosed and undisclosed trading activity can either be analysed separately or, in some use cases, combined to answer broader execution or liquidity questions, providing a more holistic view of market behaviour.”
Some ECNs are also looking to enhance their value proposition by, for example, investing in next generation technologies like AI and machine learning, making themselves Global FX Code-compliant, handling credit and expanding their product mix beyond FX.
“360TGTX is actively exploring next-generation technologies, including AI-driven liquidity management and real-time low-latency infrastructure enhancements to better support systematic trading and adaptive execution models. The platform is fully compliant with the FX Global Code, reinforcing its alignment with global best practices and trust in execution,” says Seneviratne.
“360TGTX has also expanded its offering into metals and NDFs, asset classes that are fully integrated into the same platform infrastructure, credit processes, and GUI/API environments used for spot FX,” says Seneviratne. “This approach allows clients to scale across products without duplicating effort, achieving operational consistency while diversifying liquidity access.”
Seneviratne also believes ECNs will continue to grow in popularity with many FX market participants as the industry moves towards greater automation and algorithmic trading. “As the FX industry continues to evolve toward automation, ECNs like 360TGTX are ideally positioned to support both systematic and hybrid trading models. The platform offers deterministic latency and real-time market data essential for algo execution, while its GUI ensures that even clients without in-house technology can access institutional-grade liquidity.”
“360TGTX is part of a one-stop shop within the 360T ecosystem, bridging disclosed and anonymous flow while offering smart credit facilitation and advanced execution tools. Unlike many ECNs focused on a single segment or geography, GTX’s strategic edge lies in its ability to connect institutional and regional flow, GUI and API users, and systematic and discretionary models—all within a unified, scalable framework. This structure not only supports current client needs but also ensures scalability as their strategies and infrastructure evolve,” says Seneviratne.
Customised liquidity
One of the attractions of ECNs is the ability to offer customisable access to liquidity pools tailored to their specific trading needs, thereby opening new opportunities to maximise returns, says Vinay Trivedi, CEO of Singapore’s SGX CurrencyNode. “Our ECN connects buy-side clients directly with multiple liquidity providers-including top-tier banks, market makers, and alternative sources-aggregating deep pools of liquidity that reduce price slippage and trading costs.”
“This connectivity allows clients to choose the type of liquidity they want, such as firm or last look pricing, hidden orders to minimise signalling, and selective counterparties, giving them greater control over execution strategies. Advanced analytics and liquidity management tools help clients optimise order placement and improve fill quality by understanding market impact and execution performance,” says Trivedi.
Source: Transforming the FX Trading Desk: Strategies for Market Resilience
WBR Research and Euronext FX Q3 of 2024.survey
Additionally, ECNs facilitate efficient credit frameworks that consolidate credit lines, enabling seamless access to a broad portfolio of liquidity without fragmentation, which enhances risk management and trading efficiency, says Trivedi. “By blending disclosed, undisclosed liquidity pools and buy-side order book (in the case of SGX CurrencyNode coming from our network of clients on BidFX and Maxxtrader) with innovative matching technologies across multiple data centres as NY4, LD4, TY3 and SG1, ECNs further enhance execution opportunities while ensuring compliance with market standards, fostering a transparent and reliable trading environment. This combination of technological innovation, customisable liquidity, and enhanced transparency puts more control in clients’ hands, enabling them to tailor their FX execution to their unique objectives and thus maximise potential returns.”
The direct interaction between buy-side firms and multiple liquidity providers facilitated by ECNs provides multiple benefits to market participants, says Trivedi. “One of the foremost advantages is access to deep, aggregated liquidity pools sourced from a diverse array of participants-including top-tier banks, market makers, and alternative liquidity providers. This aggregation results in tighter bid-ask spreads, reduced slippage, and improved pricing opportunities, enabling buy-side traders to execute large orders with minimal market impact.”
“Ultimately, the data ecosystem fostered by ECNs contributes significantly to the development of more resilient, transparent, and efficient financial markets.”
Vinay Trivedi
In addition to liquidity depth, ECNs provide unparalleled real-time transparency by displaying live order books and detailed market depth information, says Trivedi. “This visibility empowers traders to make well-informed decisions based on current supply and demand dynamics, enhancing their ability to optimise execution strategies. By eliminating intermediaries and facilitating direct order matching, ECNs also deliver faster, more efficient trade execution with significantly lower transaction costs.”
“Furthermore, this direct connectivity supports the deployment of advanced trading strategies through sophisticated order types and automated execution capabilities, offering traders greater flexibility and control over their outcomes. Collectively, these features not only improve execution quality and reduce costs but also unlock new opportunities for buy-side firms to maximise returns within a single trading session, reinforcing the critical role of ECNs in today’s evolving FX landscape,” says Trivedi.
Leading ECNs are also addressing FX execution by offering sophisticated order management functionalities designed to enhance efficiency, improve pricing and minimised market impact, says Trivedi. “For instance, platforms like SGX CurrencyNode provide a comprehensive suite of advanced order types-including stop losses, trailing stops, iceberg orders, TWAPs and basket algorithms that empower traders with greater control over their transactions, enabling them to tailor execution strategies to specific risk management and trading objectives.”
“Beyond order types, ECNs offer highly customisable liquidity options, allowing participants to select execution modes such as firm or last look liquidity. Traders can also leverage hidden order types to reduce signalling risk and selectively choose counterparties, further optimising execution outcomes,” says Trivedi.
SGX CurrencyNode has introduced innovations like enhanced skew protection, which minimises information leakage on quotes and orders, alongside a variety of order management mechanisms such as full amount, skew safe, collapse to mid, pegs, and dark orders, says Trivedi. “These tools can be combined flexibly, enabling clients to design bespoke execution setups that precisely align with their trading flows.”
“Moreover, we collaborate closely with FX market participants to build, optimise, and maintain bespoke liquidity pools tailored to individual needs. By integrating these customised pools with cutting-edge matching technology, we significantly improve order fulfilment rates and execution quality. This holistic approach not only enhances service quality but also positions us as essential partners for buy-side firms seeking to maximise returns through smarter, more efficient FX trading,” says Trivedi.
ECNs have become indispensable sources of granular market data, providing deep insights into order flow, trade executions, and limit order dynamics-key elements for understanding price formation and overall market behaviour, says Trivedi. “This rich dataset empowers traders to craft sophisticated strategies by revealing how individual trades and order placements influence price discovery and market volatility. With such detailed information at their disposal, market participants can more accurately time their entries and exits, gaining a crucial competitive advantage through enhanced informational awareness. SGX CurrencyNode offers a rich data set and analytics covering spread report, fill ratio, mark-outs etc coupled by AI backed actionable insights via in-house developed tool MaxxAI, which helps both market makers and taking participants to optimise their execution.’’
Beyond the development of trading strategies, the comprehensive data supplied by ECNs plays a pivotal role in advancing risk management frameworks, says Trivedi. “Real-time transparency into liquidity conditions, bid-ask spreads, and order book depth allows firms to anticipate potential market impact and adjust their trading tactics dynamically to mitigate risk.
Source: Transforming the FX Trading Desk: Strategies for Market Resilience WBR Research and Euronext FX Q3 of 2024.survey
“Furthermore, ECN data has become foundational for both academic and industry research into market microstructure, enabling rigorous analysis of how trading protocols, transparency, and information asymmetries affect market quality and efficiency. By leveraging this data, researchers and practitioners alike can refine algorithmic trading models, optimise execution strategies, and deepen their understanding of how public announcements and private information drive price dynamics. Ultimately, the data ecosystem fostered by ECNs contributes significantly to the development of more resilient, transparent, and efficient financial markets,” says Trivedi.
As already mentioned, leading ECNs are significantly enhancing their value proposition by integrating next-generation technologies such as AI and ML to optimise trade execution, liquidity management, and risk assessment. These innovations enable faster, more accurate, and cost-efficient FX trading solutions that meet the evolving demands of market participants. At the same time, ECNs are committing to full compliance with the FX Global Code-a global framework that promotes ethical conduct, robust governance, transparent execution, effective risk management, and efficient post-trade processes-thereby strengthening market integrity and fostering client trust. For example, SGX CurrencyNode enforces rigorous KYC/AML procedures and requires all participants to adhere to the Global FX Code, ensuring best practices across its platform.
Beyond spot FX, ECNs are broadening their product offerings to include non-deliverable forwards (NDFs), FX swaps, and multi-asset strategies, supported by advanced algorithmic trading and automated matching technologies that enhance price discovery and execution quality, says Trivedi. Credit management is also evolving, with ECNs integrating sophisticated credit risk tools and consolidating credit lines to provide seamless access to diverse liquidity pools while minimising counterparty risk.
“SGX CurrencyNode, for instance, employs dynamic credit checks across entities and data centers to optimise credit utilisation. Furthermore, we tailor solutions for algorithmic traders by offering curated liquidity pools, low-latency API connectivity, and flexible order types aligned with various trading strategies, empowering clients to achieve superior execution outcomes,” says Trivedi.
“By prioritising regulatory compliance, investing in cutting-edge technology, expanding product diversity, and enhancing credit facilities through CCP, PFI, and Prime of Prime routes, (for example SGX CurrencyNode offers credit intermediation via 10 clearing banks), ECNs are positioning themselves as comprehensive FX trading hubs. This holistic approach not only meets the complex needs of today’s market participants but also opens new avenues for maximising returns and sustaining long-term growth in a competitive FX landscape.”
As the FX market increasingly embraces automation and algorithmic trading, ECNs are poised to grow in popularity due to their critical role in supporting these advanced trading paradigms, says Trivedi. “ECNs provide direct market access to a broad spectrum of liquidity providers via a single electronic platform, enabling instantaneous trade execution with minimal latency-an essential feature for high-frequency and algorithmic strategies that demand speed and precision.”
“Their transparent pricing and real-time order book data empower algorithms to optimise execution by securing the best available prices while minimising market impact. Additionally, ECNs offer advanced order types and customisable liquidity options tailored to sophisticated algorithmic needs, enhancing risk management and improving fill quality. The removal of dealing desk intervention and the provision for anonymous trading further promote fairness and reduce information leakage, which is crucial for algorithms seeking to minimise signalling risk,” says Trivedi.
“Complementing these capabilities, the proliferation of high-quality analytics tools has become instrumental in refining trading strategies. This integration of cutting-edge analytics with ECN infrastructure empowers both institutional and retail participants to harness technology effectively, achieving superior execution quality and enhanced cost efficiency in today’s fast-evolving FX landscape,” he concludes.
ECNs: providing an alternative to traditional FX liquidity sources
Nicholas Pratt talks to leading ECN providers about the indispensable status of the ECN and the factors driving traders’ demands.
Electronic communication networks (ECNs) have become a critical and indispensable tool for FX traders. A report written by WBR Research and Euronext FX, published in late 2024, underlined the indispensable role that ECNs now have for FX traders. For the majority of the survey respondents (56%) access to data is the most valuable benefit of an ECN, along with diverse liquidity sources and comprehensive trading platforms.
“Accessing the FX market often means navigating a maze of fragmented liquidity, limited transparency, and restricted data availability,” states Mercedes Ola, sales director for Euronext FX. “But there’s a better way. ECNs (electronic communication networks) offer a more flexible, transparent, and efficient solution for buy-side clients looking to optimise their FX execution. By connecting you with a pool of liquidity providers optimised for your needs, ECNs put the control back in your hands and open up new opportunities to maximise returns.”
Liquidity insights
As a consequence of the demands of today’s FX traders, ECN providers are looking to add advanced FX order management to further enhance execution efficiency, ensure better pricing and reduce market impact.
“We offer insight on a number of different levels,” says Simon Jones, global head of product and liquidity, FX at LSEG. “Central to our offering is insight for Liquidity Providers (LPs) into how they are engaging with their clients, and the speed and depth of this information continually evolves.”
“At the execution level there is now an embedded process which gives clients the ability to customise their panel of banks according to the outcome they want to achieve, or to source recommendations on the right algo for that pair and time of day,” says Jones. “On a more custom level, we also have execution specialists who focus on how a clients’ actions impact their LPs, helping bring greater understanding to that relationship so that both parties can engage more effectively.”
As the aforementioned survey shows, ECNs are being increasingly recognised as invaluable sources of data that can used to develop sophisticated trading strategies, enhance risk management and inform market microstructure research. “No individual client can experience the range of conditions and circumstances that the collective client base of an ECN can,” says Jones.
“Harnessing that information and turning it into actionable decision points is where venues will differentiate themselves. Aggregation of interest is commoditised but designing workflows to adapt to conditions, fed by information about likely outcomes, will give clients greater control over their execution choices.”
“No individual client can experience the range of conditions and circumstances that the collective client base of an ECN can.”
Simon Jones
Jones also believes that ECNs will continue to grow in popularity with many FX market participants as the industry moves towards greater automation and algorithmic trading. “Through our platforms, our aim is to scale back the need for the trader to touch the commoditised trade,” says Jones.
“The work can be done in advance with the right automation tools – observe the conditions, decide the terms upon which you will trade, ensure you have the correct level of liquidity that reflects a best execution mandate, execute, allocate, book – all no touch. What is changing is the ability for those decisions to adapt as information changes, to date it has been too static. The trader’s attention has to be on where the greatest discretion is required and automation tools free them up to do that.”
Flexible trading
Another ECN provider aiming to offer more flexibility to FX traders is 360T, the Deutsche Boerse-owned FX trading platform that caters for both buy and sell-side firms. According to Vidura Seneviratne, head of spot strategy at 360T, the platform offers a “uniquely flexible and efficient” trading environment by integrating both disclosed and anonymous liquidity into a unified environment. “This setup provides buy-side clients with broad access to liquidity while reducing fragmentation and operational complexity. With ultra-low latency, deterministic infrastructure and real-time data streaming, GTX ensures reliable execution performance that supports a range of trading strategies and enhances transparency,” says Seneviratne.
“Moreover, clients already connected to 360T through any other product can easily access GTX using existing API or GUI connectivity, eliminating the need for extensive new technical builds. This interoperability allows clients to scale their operations rapidly and access liquidity with minimal onboarding hurdles, while benefiting from tools that support both passive and immediate trading styles.” ECN providers are also looking to put more control back into their clients’ hands to open up new opportunities to maximise returns by connecting them with pools of liquidity providers that will cater to their specific needs.
“360TGTX gives clients control over how they access and manage liquidity through features such as firm pricing, last-looked liquidity, and access to dark pools,” says Seneviratne. “This flexibility empowers both makers and takers to choose how they engage, based on their execution goals and risk appetite. Clients can also semi-automate their decisions using logic built into the platform, enabling them to dynamically select the best way to interact with different liquidity pools.
“As the FX industry continues to evolve toward automation, ECNs are ideally positioned to support both systematic and hybrid trading models.”
Vidura Seneviratne
“Custom liquidity pools can be constructed and maintained by segment, such as for systematic funds, agency brokers, or regional banks and credit-constrained clients can access additional opportunities via Prime-of-Prime arrangements. All of this is enhanced by 360TGTX’s ability to tap into the firm’s broader network, offering clients unmatched depth, diversity, and control across counterparties,” says Seneviratne. The direct interaction between buy-side firms and multiple liquidity providers in a single session that is facilitated by ECNs brings multiple benefits, according to Seneviratne.
“360TGTX enables clients to interact directly with a diverse mix of bank, non-bank, and systematic liquidity providers in real time through a consolidated trading interface. The ability to simultaneously engage with disclosed, anonymous, and semi-disclosed liquidity within the same session significantly enhances execution quality and transparency,” says Seneviratne.
Semi-disclosed models, in particular, provide a valuable balance between access and efficiency by reducing the need for extensive onboarding, credit negotiation, and legal papering, says Seneviratne. “This helps clients go live faster without compromising on control. With both GUI and API access options, the platform caters to a broad spectrum of users, from manual traders at regional banks to high-frequency strategies at hedge funds.”
Order management functionality is also another area of development for ECN providers. “GTX supports a suite of advanced order management tools including sweepable logic, pegged orders, mid-point matching, and full amount trading. All of these are designed to provide traders with the ability to control market impact, timing, and visibility. These features can be accessed via GUI or API, ensuring broad usability,” said Seneviratne.
“Additionally, by integrating with 360T’s broader execution infrastructure, such as the execution management system (360T EMS), and Deutsche Borse Group’s wider network of companies, like the independent algo-provider Quantitative Brokers, GTX enables clients to build multi-layered execution workflows,” says Seneviratne. “This allows clients not only to use existing tools but also to experiment with new execution strategies and structures in a flexible, modular environment tailored to their needs.”
As previously stated, ECNs increasingly recognised as invaluable sources of data, so what are ECN providers doing to cater to this trend? “The data generated by 360TGTX’s deterministic and low-latency environment is not just rich but actionable,” says Seneviratne. “When properly organised, this data becomes a powerful foundation for experimentation, allowing the platform and its clients to provide intelligent suggestions and guidance with meaningful explainability. The richness of GTX data—paired with the breadth of our client base—enables learning loops that support both alpha generation and risk control. We are exploring how to embed AI directly into liquidity workflows, transforming this data into real-time, decision-enhancing insights.”
“Since 360TGTX spans a broad and diverse client base, it supports the learning and optimisation of trading models across multiple user types and market conditions,” says Seneviratne. “Disclosed and undisclosed trading activity can either be analysed separately or, in some use cases, combined to answer broader execution or liquidity questions, providing a more holistic view of market behaviour.”
Some ECNs are also looking to enhance their value proposition by, for example, investing in next generation technologies like AI and machine learning, making themselves Global FX Code-compliant, handling credit and expanding their product mix beyond FX.
“360TGTX is actively exploring next-generation technologies, including AI-driven liquidity management and real-time low-latency infrastructure enhancements to better support systematic trading and adaptive execution models. The platform is fully compliant with the FX Global Code, reinforcing its alignment with global best practices and trust in execution,” says Seneviratne.
“360TGTX has also expanded its offering into metals and NDFs, asset classes that are fully integrated into the same platform infrastructure, credit processes, and GUI/API environments used for spot FX,” says Seneviratne. “This approach allows clients to scale across products without duplicating effort, achieving operational consistency while diversifying liquidity access.”
Seneviratne also believes ECNs will continue to grow in popularity with many FX market participants as the industry moves towards greater automation and algorithmic trading. “As the FX industry continues to evolve toward automation, ECNs like 360TGTX are ideally positioned to support both systematic and hybrid trading models. The platform offers deterministic latency and real-time market data essential for algo execution, while its GUI ensures that even clients without in-house technology can access institutional-grade liquidity.”
“360TGTX is part of a one-stop shop within the 360T ecosystem, bridging disclosed and anonymous flow while offering smart credit facilitation and advanced execution tools. Unlike many ECNs focused on a single segment or geography, GTX’s strategic edge lies in its ability to connect institutional and regional flow, GUI and API users, and systematic and discretionary models—all within a unified, scalable framework. This structure not only supports current client needs but also ensures scalability as their strategies and infrastructure evolve,” says Seneviratne.
Customised liquidity
One of the attractions of ECNs is the ability to offer customisable access to liquidity pools tailored to their specific trading needs, thereby opening new opportunities to maximise returns, says Vinay Trivedi, CEO of Singapore’s SGX CurrencyNode. “Our ECN connects buy-side clients directly with multiple liquidity providers-including top-tier banks, market makers, and alternative sources-aggregating deep pools of liquidity that reduce price slippage and trading costs.”
“This connectivity allows clients to choose the type of liquidity they want, such as firm or last look pricing, hidden orders to minimise signalling, and selective counterparties, giving them greater control over execution strategies. Advanced analytics and liquidity management tools help clients optimise order placement and improve fill quality by understanding market impact and execution performance,” says Trivedi.
Additionally, ECNs facilitate efficient credit frameworks that consolidate credit lines, enabling seamless access to a broad portfolio of liquidity without fragmentation, which enhances risk management and trading efficiency, says Trivedi. “By blending disclosed, undisclosed liquidity pools and buy-side order book (in the case of SGX CurrencyNode coming from our network of clients on BidFX and Maxxtrader) with innovative matching technologies across multiple data centres as NY4, LD4, TY3 and SG1, ECNs further enhance execution opportunities while ensuring compliance with market standards, fostering a transparent and reliable trading environment. This combination of technological innovation, customisable liquidity, and enhanced transparency puts more control in clients’ hands, enabling them to tailor their FX execution to their unique objectives and thus maximise potential returns.”
The direct interaction between buy-side firms and multiple liquidity providers facilitated by ECNs provides multiple benefits to market participants, says Trivedi. “One of the foremost advantages is access to deep, aggregated liquidity pools sourced from a diverse array of participants-including top-tier banks, market makers, and alternative liquidity providers. This aggregation results in tighter bid-ask spreads, reduced slippage, and improved pricing opportunities, enabling buy-side traders to execute large orders with minimal market impact.”
“Ultimately, the data ecosystem fostered by ECNs contributes significantly to the development of more resilient, transparent, and efficient financial markets.”
Vinay Trivedi
In addition to liquidity depth, ECNs provide unparalleled real-time transparency by displaying live order books and detailed market depth information, says Trivedi. “This visibility empowers traders to make well-informed decisions based on current supply and demand dynamics, enhancing their ability to optimise execution strategies. By eliminating intermediaries and facilitating direct order matching, ECNs also deliver faster, more efficient trade execution with significantly lower transaction costs.”
“Furthermore, this direct connectivity supports the deployment of advanced trading strategies through sophisticated order types and automated execution capabilities, offering traders greater flexibility and control over their outcomes. Collectively, these features not only improve execution quality and reduce costs but also unlock new opportunities for buy-side firms to maximise returns within a single trading session, reinforcing the critical role of ECNs in today’s evolving FX landscape,” says Trivedi.
Leading ECNs are also addressing FX execution by offering sophisticated order management functionalities designed to enhance efficiency, improve pricing and minimised market impact, says Trivedi. “For instance, platforms like SGX CurrencyNode provide a comprehensive suite of advanced order types-including stop losses, trailing stops, iceberg orders, TWAPs and basket algorithms that empower traders with greater control over their transactions, enabling them to tailor execution strategies to specific risk management and trading objectives.”
“Beyond order types, ECNs offer highly customisable liquidity options, allowing participants to select execution modes such as firm or last look liquidity. Traders can also leverage hidden order types to reduce signalling risk and selectively choose counterparties, further optimising execution outcomes,” says Trivedi.
SGX CurrencyNode has introduced innovations like enhanced skew protection, which minimises information leakage on quotes and orders, alongside a variety of order management mechanisms such as full amount, skew safe, collapse to mid, pegs, and dark orders, says Trivedi. “These tools can be combined flexibly, enabling clients to design bespoke execution setups that precisely align with their trading flows.”
“Moreover, we collaborate closely with FX market participants to build, optimise, and maintain bespoke liquidity pools tailored to individual needs. By integrating these customised pools with cutting-edge matching technology, we significantly improve order fulfilment rates and execution quality. This holistic approach not only enhances service quality but also positions us as essential partners for buy-side firms seeking to maximise returns through smarter, more efficient FX trading,” says Trivedi.
ECNs have become indispensable sources of granular market data, providing deep insights into order flow, trade executions, and limit order dynamics-key elements for understanding price formation and overall market behaviour, says Trivedi. “This rich dataset empowers traders to craft sophisticated strategies by revealing how individual trades and order placements influence price discovery and market volatility. With such detailed information at their disposal, market participants can more accurately time their entries and exits, gaining a crucial competitive advantage through enhanced informational awareness. SGX CurrencyNode offers a rich data set and analytics covering spread report, fill ratio, mark-outs etc coupled by AI backed actionable insights via in-house developed tool MaxxAI, which helps both market makers and taking participants to optimise their execution.’’
Beyond the development of trading strategies, the comprehensive data supplied by ECNs plays a pivotal role in advancing risk management frameworks, says Trivedi. “Real-time transparency into liquidity conditions, bid-ask spreads, and order book depth allows firms to anticipate potential market impact and adjust their trading tactics dynamically to mitigate risk.
“Furthermore, ECN data has become foundational for both academic and industry research into market microstructure, enabling rigorous analysis of how trading protocols, transparency, and information asymmetries affect market quality and efficiency. By leveraging this data, researchers and practitioners alike can refine algorithmic trading models, optimise execution strategies, and deepen their understanding of how public announcements and private information drive price dynamics. Ultimately, the data ecosystem fostered by ECNs contributes significantly to the development of more resilient, transparent, and efficient financial markets,” says Trivedi.
As already mentioned, leading ECNs are significantly enhancing their value proposition by integrating next-generation technologies such as AI and ML to optimise trade execution, liquidity management, and risk assessment. These innovations enable faster, more accurate, and cost-efficient FX trading solutions that meet the evolving demands of market participants. At the same time, ECNs are committing to full compliance with the FX Global Code-a global framework that promotes ethical conduct, robust governance, transparent execution, effective risk management, and efficient post-trade processes-thereby strengthening market integrity and fostering client trust. For example, SGX CurrencyNode enforces rigorous KYC/AML procedures and requires all participants to adhere to the Global FX Code, ensuring best practices across its platform.
Beyond spot FX, ECNs are broadening their product offerings to include non-deliverable forwards (NDFs), FX swaps, and multi-asset strategies, supported by advanced algorithmic trading and automated matching technologies that enhance price discovery and execution quality, says Trivedi. Credit management is also evolving, with ECNs integrating sophisticated credit risk tools and consolidating credit lines to provide seamless access to diverse liquidity pools while minimising counterparty risk.
“SGX CurrencyNode, for instance, employs dynamic credit checks across entities and data centers to optimise credit utilisation. Furthermore, we tailor solutions for algorithmic traders by offering curated liquidity pools, low-latency API connectivity, and flexible order types aligned with various trading strategies, empowering clients to achieve superior execution outcomes,” says Trivedi.
“By prioritising regulatory compliance, investing in cutting-edge technology, expanding product diversity, and enhancing credit facilities through CCP, PFI, and Prime of Prime routes, (for example SGX CurrencyNode offers credit intermediation via 10 clearing banks), ECNs are positioning themselves as comprehensive FX trading hubs. This holistic approach not only meets the complex needs of today’s market participants but also opens new avenues for maximising returns and sustaining long-term growth in a competitive FX landscape.”
As the FX market increasingly embraces automation and algorithmic trading, ECNs are poised to grow in popularity due to their critical role in supporting these advanced trading paradigms, says Trivedi. “ECNs provide direct market access to a broad spectrum of liquidity providers via a single electronic platform, enabling instantaneous trade execution with minimal latency-an essential feature for high-frequency and algorithmic strategies that demand speed and precision.”
“Their transparent pricing and real-time order book data empower algorithms to optimise execution by securing the best available prices while minimising market impact. Additionally, ECNs offer advanced order types and customisable liquidity options tailored to sophisticated algorithmic needs, enhancing risk management and improving fill quality. The removal of dealing desk intervention and the provision for anonymous trading further promote fairness and reduce information leakage, which is crucial for algorithms seeking to minimise signalling risk,” says Trivedi.
“Complementing these capabilities, the proliferation of high-quality analytics tools has become instrumental in refining trading strategies. This integration of cutting-edge analytics with ECN infrastructure empowers both institutional and retail participants to harness technology effectively, achieving superior execution quality and enhanced cost efficiency in today’s fast-evolving FX landscape,” he concludes.