Even though the client segment and geography may differ, the technology is essentially the same,” says Wang. Although it has expanded to New York and London in the last year, Spark is primarily looking to grow the FX market in Singapore for institutional traders and regional banks. End-to-end workflow and efficiency is optimized because aggregators automate cross-venue FX trading workflows — and analytics follow and improve executions. With emerging market FX volumes increasing to 23 percent of all currency trading globally, the need to efficiently manages these flows electronically has also increased.

fx liquidity aggregation

We also provide reports on the liquidity
provider executed quantity and trading server reports for MT4, MT5, and TickTrader servers. The Bridge ensures that all transactions are executed at the best available price by sending a request to liquidity providers as
soon as information about transactions is received from the trading platform. Implementing liquidity aggregation requires meticulous attention to various aspects. Selecting the right providers aligns with trading needs in forex, ensures a proper foundation of the system. Integrating the correct technology for the aggregation of liquidity may present complex integration challenges but is necessary for the seamless execution of market orders in forex.

TickTrader as a digital asset liquidity aggregator

By collecting liquidity from different sources, Forex liquidity aggregators can offer increased market depth, faster order execution, and access to multiple markets. Considering all this, LAs can become an outstanding tool for improving marketing efficiency and lowering transaction costs. The second set of filters splices together identical layers, resolves arbitrage situations (if necessary), and anonymizes
liquidity providers. This step shapes the next iteration of market depth delivered to trading terminals and relayed through APIs.

The Feeder ensures that quotes are processed accurately and in real-time, ensuring that the TickTrader Liquidity
Aggregator provides reliable and up-to-date market data. “This is a significant evolution for Gold-i based on a 15-year proven track record of developing reliable technology for the industry and an in-depth understanding of client requirements. To determine the best option, oneZero analyses, in real https://www.xcritical.com/ time, its clients’ flow and provides them with recommendations on how best to risk-manage it. Adherence to regulatory compliance is paramount, requiring continuous monitoring and adaptation to international regulations. The fragmented nature of liquidity aggregation cryptocurrency markets causes disparities in data formats and protocols, leading to inefficiencies and demanding a standardized approach.

Integral to liquidity

The Synthetic Symbol Market Making feature is particularly valuable for launching trading platforms in emerging markets, where currency conversion issues may arise. Order Sweeping to split the client’s order into smaller parts and execute it with multiple providers simultaneously. If quotes from banks exceed the maximum AWP, the filter affects the prices set by these providers,
effectively balancing quotes in the feed and reducing the risk of stop outs. Bid/Ask price imbalances can result in significant long or short positions, leading to potential margin calls and stop outs. This poses a challenge for brokers who must pay unfavorable swap commissions for such instruments. TickTrader Liquidity
Aggregator provides a solution with its advanced Shift and Margin Level filters, designed to mitigate these risks.

These assets have higher liquidity, but their conversion to money still requires time. The top three most traded raw materials are oil, natural gas, and gold, followed by less popular but still vital silver, coffee, sugar, and cotton. To make this possible, we have developed a trading multiplier system, which assigns a trading multiplier to each trading account on the platform. The value of this multiplier determines the percentage of the requested trading volume that goes to the external market, thereby ensuring that our
clients only take on the risk that they can handle.


FX Trading is your single source of access to preferred trading venues, with a seamless, end-to-end workflow for all your forex trades. This is a sequence of filters that process raw quotes from different sources into aggregated Level 2 used for orders allocation, execution, and trading system feeding, thus shaping a customized market depth. Combined with your trading platform, this component delivers you access to a liquidity pool configured specifically for your business and your customers. When it comes to the functionality https://www.xcritical.com/blog/liquidity-aggregation-definition-and-benefits-for-forex/ from the latest generation of liquidity aggregation systems, greater analytics, automated recommendation and selection of the best LPs’ for the flow you get from your client franchise are such features. Aggregation is not a new concept, but its importance has increased significantly as the number of venues has grown. It provides access and a consolidated view of the FX market, which increases transparency and offers algorithmic executions that maximize leverage of the available liquidity in the market.

fx liquidity aggregation

A backup solution for multi-user systems with no downtime required to perform the backup. Netting is a method of reducing risks in financial contracts by combining or aggregating multiple financial obligations to arrive at a net obligation amount. It is scalable, light and robust and is compatible with any Java-compliant operating system.

Geographic development

Liquidity has moved from the likes of Currenex, HotSpot and FXall to the single dealer platforms. This is where the combination of aggregation and smart order routing become so important, says Wang. In the last three to four years, more clients have understood that aggregation is now about more than just ranking orders by price. There are other factors to consider – such as fill ratio, market impact, hold-time and spreads. FX markets have become more transparent, and consequently electronic trading will increase.

  • “That method of sweeping the market would leave the last man standing is less prominent.
  • Our company offers the most profitable, fully licensed fx/crypto brokerage software or a ready-to-work business.
  • You can adjust your preferences at any time through the preference link in any electronic communication that you receive from us.
  • End-to-end workflow and efficiency is optimized because aggregators automate cross-venue FX trading workflows — and analytics follow and improve executions.
  • Spurred on by the Covid-19 pandemic-induced volatility, there has been an increase in the number of trades flowing through FX markets, which has invariably resulted in an uptick in the amount of data generated by the market.
  • It minimizes slippage, reduces spreads, and allows handling larger orders without significant impact.

Straight Through Processing (STP) is supported for FX Matching, FXall or third-party venues. MTFs are very popular in Europe since they offer faster order execution speeds, lower costs, and different trading incentives. LPs offer more favorable marketing conditions due to the ample supply and demand volumes. Currency trade in FX is performed in currency pairs consisting of the base and quoted currencies.

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