GTX Embraces Full-Amount FX Streams to Minimize Trade Information Leakage
- This protocol enables buy-side traders to trade anonymously without signaling their trading interest to the broader market.
GAIN Capital's institutional arm GTX today launched 'full-amount streams', a new facility that enables buy-side market participants to execute small and medium-sized spot FX orders anonymously at one price, in a single transaction, and with a single Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term provider.
This dynamic will benefit all market participants, including liquidity provider counterparties, by ameliorating information leakage, market impact and other concerns facing buy and sell-side foreign exchange market participants.
The facility differs from existing Liquidity Aggregation Liquidity Aggregation Aggregation or liquidity aggregation can be characterized as the process of gathering buy and sell orders from different sources and directing them to a given executing party. This is most commonly done from multiple sources to minimize the risks from using a single liquidity provider. By aggregating liquidity from multiple sources, the broker is able to increase the depth of market it offers to its clients and therefore deliver better fills on the order flow when compared to when it uses a sing Aggregation or liquidity aggregation can be characterized as the process of gathering buy and sell orders from different sources and directing them to a given executing party. This is most commonly done from multiple sources to minimize the risks from using a single liquidity provider. By aggregating liquidity from multiple sources, the broker is able to increase the depth of market it offers to its clients and therefore deliver better fills on the order flow when compared to when it uses a sing Read this Term systems which bundle existing orders to show weighted average pricing for block-size trades.
According to the company statement, this protocol enables buy-side traders to trade anonymously without signaling their trading interest to the broader market, minimising pre- and post-trade information leakage as well as market impact concerns.
Regarding the sell-side counterparties, this feature allows them to manage positions without broadcasting their trading interest or position to the rest of the sell-side firms which may act based on their awareness of the trade.
Eliminating these risks for both sides of the transaction is expected to enhance block liquidity available through the new facility.
Vincent Sangiovanni, CEO of GTX, commented: “We are pleased to launch full-amount streams, which we designed in close collaboration with key buy and sell-side clients. Full-amount streams enhance GTX’s utility to portfolio managers and other traders who prefer to deal in one transaction on one price with one counterparty for an entire quantity.”
GAIN Capital's institutional arm GTX today launched 'full-amount streams', a new facility that enables buy-side market participants to execute small and medium-sized spot FX orders anonymously at one price, in a single transaction, and with a single Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term provider.
This dynamic will benefit all market participants, including liquidity provider counterparties, by ameliorating information leakage, market impact and other concerns facing buy and sell-side foreign exchange market participants.
The facility differs from existing Liquidity Aggregation Liquidity Aggregation Aggregation or liquidity aggregation can be characterized as the process of gathering buy and sell orders from different sources and directing them to a given executing party. This is most commonly done from multiple sources to minimize the risks from using a single liquidity provider. By aggregating liquidity from multiple sources, the broker is able to increase the depth of market it offers to its clients and therefore deliver better fills on the order flow when compared to when it uses a sing Aggregation or liquidity aggregation can be characterized as the process of gathering buy and sell orders from different sources and directing them to a given executing party. This is most commonly done from multiple sources to minimize the risks from using a single liquidity provider. By aggregating liquidity from multiple sources, the broker is able to increase the depth of market it offers to its clients and therefore deliver better fills on the order flow when compared to when it uses a sing Read this Term systems which bundle existing orders to show weighted average pricing for block-size trades.
According to the company statement, this protocol enables buy-side traders to trade anonymously without signaling their trading interest to the broader market, minimising pre- and post-trade information leakage as well as market impact concerns.
Regarding the sell-side counterparties, this feature allows them to manage positions without broadcasting their trading interest or position to the rest of the sell-side firms which may act based on their awareness of the trade.
Eliminating these risks for both sides of the transaction is expected to enhance block liquidity available through the new facility.
Vincent Sangiovanni, CEO of GTX, commented: “We are pleased to launch full-amount streams, which we designed in close collaboration with key buy and sell-side clients. Full-amount streams enhance GTX’s utility to portfolio managers and other traders who prefer to deal in one transaction on one price with one counterparty for an entire quantity.”