Ideal Prediction, a trading analytics and data science provider, plans to introduce an FX Global Code (FXGC) compliance solution that will help voice traders and trading algorithms users meet their obligations.
Dubbed ‘Scope,’ the new solution enables a broad range of use cases, but it mainly monitors order and trade activity as FXGC is fundamentally a data challenge. It provides evidence that humans and algorithms adhere to governance and risk controls and highlights potential issues like last look, spoofing, flashing, layering, order violations, limit breaches, and P&L flags.
The FX Global Code consists of 55 principles of good practices that function as a guide to ethical behavior in the FX market. Published in May 2017, the initiative emphasizes the growing need for transparency in the industry execution and governance.
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A first step to demonstrate adherence
After lengthy industry collaboration and planning, the document helps foster more robust, fair, liquid, open, and appropriately transparent marketplaces, where different market participants are actively supported by a resilient infrastructure.
Scope is designed for several market participants defined by the Global Code. For these segments, the solution is a first step to demonstrate their adherence to the new rules to relevant competent authorities.
Ideal Prediction has previously co-operated with FX institutional venue GTX to expand its existing FX data and analytics offering. The partnership targets execution performance and overall risk management for both the buy- and sell-side, helping them benchmark execution performance, as well as analyzing a wider range of client flows.
Commenting on the news, John Crouch, founder and CEO of Ideal Prediction said: “Since the release of the FXGC, our firm has focused on evidencing adherence to the principles, but the service additionally helps senior management sleep at night. Clients specifically value the independence of our service, in addition to our analytics technology and high-frequency trading expertise. Not every check has a clear definition, so we collaborate with the FX community to provide standardized as well as custom checks appropriate to each firms’ business.”